All Forum Posts by: H. Jack Miller

I would look and see who has what listed and you will quickly see who knows the market. 

 I am not an attorney and don't want to provide my thinking on this, there are a lot of variables that factor into this. Feel free to contact me off line

agree with everyone because of the low property values maybe a challenge, maybe see if the seller will hold financing.

I would start an LLC and do it in that. In most states you can do it yourself on line. I would have the bank account in the LLC name.

I would to on LinkedIn and start talking to people, you will see very quickly who focuses on what. There are a ton of them out there, and some are good. 

In my example all investors would get a preferred return of 6%. The the profit after the 6% would be split 70% to the investors as LP's and 30% to the GP. In your case your both the LP and GP. So on your investment you would make a 6% return first along with them. After that is paid what ever is left 70% goes to the LP investors and 30% to the GP. Your the GP for putting the deal together and managing it, but your also 50% of the LP side as well. You can play with it and I just sued 70% 30% as an example, you can do 60/40, 80/20. What every works for all parties. This is a very standard formulas for real estate partnerships. I am giving you very high level, you need to drill down as an example is the preferred compounding etc. 

Its great your starting young, if you stick with it you will be wealthy one day. When you invest as an LP, your giving a lot of control to the GP, as well the GP is charging for this. I would proceed with extreme caution. For some its great, but for others is not great and can be horrible. make sure you read every document and understand every fee and situation. I am involved with deals form both sides, but I have seen a lot blow up. 

what ever everyone is in agreement works. But some words of caution. Make sure everyone's interest and goals are aligned. Often they change over time and this can cause great friction. Have a buyout clause, where you can buy them out. Make sure everything is in writing and everyone read and signs it. Every marriage starts off thinking there's was made in heaven, but 50% blow up. Its the same with investing there is often issues. I would build in a good cash cushion for the partnership. You maybe want to do a standard deal where the investors get  preferred return lets say 6% with a 70/30 split. This is more standard. But what ever works for everyone is good. 

Every lender will need similar documents, unless its a no or limited documentation or asset backed loan. 

 anytime.