All Forum Posts by: Jack K.

Situation:

My friend's uncle has a $2M property in Queens, NY. An investor offered him $3M but turned it down. The uncle offered my friend the opportunity to develop it because he's getting to old to develop it himself. The uncle would provide the property and my friend would pay for the construction ($2M) to knock it down and construct a 20 unit and manage it.  My friend doesn't have $2M so together with his friends, we are going to put up the money. I want to put up $500k of the $2M, but I also don't have $500k, so I would want to get some of my family involved.

What's the best way to set this whole thing up?

I imagine there has to be an LLC #1 for the project, then an LLC #2 for 50% of the project that my friend and his friends will own, then lastly an LLC #3 compromised of my family for our $500k that we put into LLC #2?

Thanks for any help and recommendations!

What about paying taxes on the revenue you made on the rental income? If you make $100k on rental income there must be a lot taken out for taxes, no?

Hey OnYango, thanks for your response. Definitely prefer New York because I'm a huge fan of AirBNB'ing which I love doing for income. However, if there are opportunities elsewhere that make sense we would consider it. NJ markets are also something I'm interested in.

Based on income, I qualify for a $500k mortgage and my friend qualifies for $2M mortgage. Together we want to go in on a real estate project(s). We can throw down around $500k-700k. We are both based in Brooklyn. My plan was to buy this extremely nice 2-unit building in Williamsburg, Brooklyn and rent it out doing short-term rentals while living there. If I didn't do short-term rental the place wouldn't cash flow. However this area continues to grow in value. I would be managing the deal and hopefully turn this one into more and more future deals. Thoughts/recommendations? I feel like this would be easier if I wasn't based in New York.

You are right, I think there might be two units in the building becasue the Zillow listing says 6 beds/6 baths. I guess that this one is one of the units going for $2,950. Even still seems like a very low amount for $1.5M. 

Thanks for your response!

I came across a rental listing at 713 Lexington Ave. Brooklyn, NY. This place https://www.zillow.com/homedetails/713-Lexington-Ave-Brooklyn-NY-11221/30602984_zpid/ was sold at $1.5M a year ago, but the rent asking price is for $2,950 today http://www.bedfordbrownstone.com/PropertyDetails?i... . 

How do those numbers make any sense? Why would anyone want to go in on this deal? That is not nearly enough to cover a $1.5M mortgage and if it was paid all cash it doesn't nearly return enough money per year to be worth it

...am I missing something?

@Rick Baggenstoss I just heard about AirDNA. Sent you a PM. Would love to hear more about your thoughts

If anyone already pays for AirDNA or wants to go in on it together ($500/month) send me a message 

@David Weintraub How do I find more info on this kind of strategy and deal where investors are buying blocks in Philly? Would love to join the discussion with these certain groups. 

@David Da Silva Thanks for this!