All Forum Posts by: Jared K.

Also, Does the arrangement split, seem fair?  As in have you seen partnerships emerge successfully like this out there in the industry?

 Good advice thank you.

I currently have 3-family and would like to expand but do not have the capital.  My original plan was to build more equity in existing property and build up enough for next down payment, however I already have an investor who would like to go into a deal with me.  Initially we discussed a flip to start (never done one before), so I've been thinking about structuring a partnership and acquiring a multi as that's where I have experience....here is what I was thinking.  Has anyone been successful with an arrangement like this?:

- I find the properties and manage them

- He provides the capital for the down payments and immediately owns that amount of original equity, so he always gets that back.  The rest of the property's equity that accrues is split 50/50

- Expenses and improvements are split 50/50

- If I buy him out down the road, I need to provide him with his original down payment for that property, plus whatever equity has accrued, and vice versa

Thoughts??

-Jared

Yes exactly, when I look at the numbers it's likely going to be a couple hundred over what I'm paying now given my interest rate is low currently, but considering paying the extra because I think interest rates are going to continue to head up, not to mention I'd love to free up the FHA to use on the next property

 Thanks for the tip, I have not but have one in mind I'll reach out.

Not happy with my current Mortgage broker, he waited too long and gave me the runaround about cash out refinancing then left me hanging as interest rates started to rocket up. I've got a 3 family in Chelsea, MA with about 25% equity, my DTI is under 50%, I have an FHA loan and I want to free it up so I can use it in the near future again, so I want to get into a commercial loan. Need to understand if this is still worth it or even possible at current rates...my interest rate is 2.875 % so even if I get a commercial loan and stop paying mortgage insurance I'll likely need to still pay more a month than what I'm paying now, but may be worth it to free up the FHA loan for future purchases. Would love to talk to someone knowledgeable about investing and go over options with me. Any recommends?

The history here is that when I bought the 3-family property 2 years ago in Chelsea, MA, the condo association for the property next door forced the previous owner of my property to move her fence about a foot so that they could park an extra car on their end.  Rightfully so as the fence was installed diagonally to the street and encroached onto their property.  She moved about 20 feet of it, about 1 foot towards her property so there's enough room to park their car, and kept the rest so it looks pretty bad, but at least they can park a car.  I've been here 2 years and no one has approached me since about it, but now I need to repave the driveway and put a new fence in.  How do I go about this, do I try to track down the condo association president and we come to an agreement about the new fence, or do I just go for it?  I actually think I will need a few inches on their property (won't mess up the parking though), just so i have enough space to pull all the way down to a really old garage I have in the back, the way I can now.  Thoughts on getting this accomplished?  I think I may need to "rent a few inches from them basically.

I purchased my first multi last year (3-family) and am currently living in it.  I don't have the funds or equity yet to purchase a 4-family that just went on the market 3 doors down.  The math looks good, but don't have the 20 to 25% down to get it.  I do have 1 or 2 investors that I may be able to structure something but have never done it before.  What would be some fair scenarios/contracts I would set up with someone who has the 20% to put down but I would be the one maintaining and taking care of everything.  I know I could offer a straight up % of return on his money and/or a percentage of the ownership.  What would you do in similar position?

Thanks Doug.  I'll clarify:  In his lease it said "There are 2 parking spaces" towards the end, which is vague I know, but as far as I understand this is interpreted as 2 spaces allocated to him.  It's a single lane driveway and he takes up 2 spaces with one car behind the other in the single lane.  The lane widens at the end and opens to 2 car garage.  The 2 car garage has barn doors so cannot currently park a car there.   My Goal:  Put on auto garage doors and park my car in the left side of the 2 car garage, but because it's a single lane driveway it needs to be clear to drive up to the garage (hence, he loose his 2 car driveway parking).  However, I intend as part of the new lease I provide to give him the option of the second parking spot in the garage once I get the new automatic doors on, or he can use it for all his tools, but that also means his rent goes up a bit.  We are pretty far into this now, I may just need to deal with it as you suggested after closing.  Thanks!

Thanks for the insights on this Justin