All Forum Posts by: Account Closed

@Tj Hines if you were in my position (and to be brief, I have extensive experience in acquisitions with a great portfolio. I have a full-time contracting crew, and I do all project and property management. I have a lot of references) what kind of questions would you ask a potential financial investor?

@Greg Dickerson thanks!

@Peter Lohmann extremely accurate!

@Danny Randazzo thanks so much—I will definitely check this out!

I’m interested in hearing ways people (that have executed partnership agreements) have structured deals with partners bringing the financing to a multi-family deal.

In my case, I have investors interested in partnering with me on off-market multi-family property I find that exhibits upside in appreciating areas in my market (Columbus, Ohio).

I typically only require the financing partner to bring the funds, and I am responsible for everything in between. I find the deals, stabilize the asset by offering project management (I have a full-time contracting crew) and handle the property management/leasing.

So if you were in my position, how would you structure it? What kind of terms would be a must for you? I want to ensure that any partnership I jump into is mutually beneficial, and I certainly don’t want to give up more than I ought to.

Would love to hear thoughts from those with experience in this area!

Thanks in advance!

I’m interested in hearing ways people (that have executed partnership agreements) have structured deals with partners bringing the financing to the deal.

In my case, I have investors interested in partnering with me on off-market product I find that exhibits upside in appreciating areas in my market (Columbus, Ohio).

I typically only require the financing partner to bring the funds, and I am responsible for everything in between. I find the deals, stabilize the asset by offering project management (I have a full-time contracting crew) and handle the property management/leasing.

So if you were in my position, how would you structure it? What kind of terms would be a must for you? I want to ensure that any partnership I jump into is mutually beneficial, and I certainly don’t want to give up more than I ought to.

Would love to hear thoughts from those with experience in this area!

Thanks in advance!

@Marian Smith one thing I have learned in this business is that when you own a property and need to make a business decision, you have to do it and you do not owe the tenant any explanation. I never lie to my tenants (although I rarely disclose that I am the owner, I typically tell them I am only the manager which has helped me out in a number of ways) but I also don’t feel the need to disclose to them everything I’m doing. If you can stand the tenant being rude and they pay on time and keep the unit up and it’s not too much of a hassle, I would say keep them and opt to formally communicate with them. (i.e. posting paper notices, not just texting, etc.). If they are a nuisance you can’t deal with, just let them know that you will not be renewing their lease. I had a situation before where the tenant was overly-anxious and called noise complaints on all of the other tenants (which were not legitimate) and I opted to end her lease. When she confronted me, I simply told her what was stated in my formal letter to her, that I would not be renewing the lease. She kept poking me to get a response claiming it was personal, but I maintained my position, and told her again, that I am not renewing the lease.

You just need to weigh the pros and cons of turning over your unit. Is it worth (both in time and money) advertising your unit, showing it, securing a new tenant, turning over the unit, etc. or would keeping them and dealing with the occasional hassle from them cost less (both in time and money)?

Best of luck!

@Reinaldo Giudici I’m certainly biased because I live here, but read up on Columbus, Ohio. The market out here is strong with a lot of tech companies (including Google and Facebook) and Fortune 500 companies (Nationwide, Big Lots, L Brands, Cardinal Health, etc.) laying down roots here. I have about 30 units inside our outer belt and we are seeing A LOT of out of state money flood our investment field here.

Happy to provide more details if interested. Good luck on your investment journey!

I work with Nate Busch at Busch Tax Co. in New Albany (He is also here on Bigger Pockets). I did a lot of researching for a CPA before I made my decision and ultimately went with him because not only is he knowledgeable as a CPA, but he also owns a healthy amount of Columbus investment real estate. It has been really helpful to have a CPA that understands your position as an investor and he takes time to understand your goals/strategies. 

@Justin Phillip This is actually happening quite a bit in Columbus at the moment with a lot of people moving here for tech jobs. I am getting application requests before showing requests. You are doing the right thing with all of your background checks, notarizing lease, etc. I am finding it more and more common with younger millennials (which I am one of them) and Gen Z’ers that they prefer less contact when leasing units. But seeing that you are in Austin, and knowing only a little bit about your market, I’m sure you have a unit in a desirable area and competition for rentals (as a renter) can be tough, especially for someone who doesn’t know the area. I wouldn’t be too concerned if you have done your due diligence on background checks, etc. I have a few units in Columbus’ arts district which is the most popular spot in Columbus, and these units don’t stay on market for rent very long so people are aggressive. I think this will become pretty normal in the near future, but agree with other posts in doing what you feel you need to do to be comfortable with it. Just want you to know that I’ve seen it to and have not run into problems with it (yet)! Best of luck!