All Forum Posts by: Jeremy Marek

@Ryan Evans,  Thanks for the detailed response! It can be a rather confusing issue. The shame of it all is that the vast majority of investors like us are trying our hardest to ensure we are complying with all laws. It can be frustrating when what is right and wrong isn't easily understood in the law.

Under what circumstances would I be in danger of a "grey" area?

@Kyle Bryant,  That was the conclusion I came to as well. So the main focal point is that we both participate in the management of the investment. Are you aware of any limits on the number of active members or amount that can be invested?

@Jeff Kennedy your easiest path would probably be a local bank. You will pay more points, but you can usually get a 7 or 10 year fixed recourse loan from a local lender. I am in the commercial multi family space, and although a $1M purchase price might sound like a lot for some investors, it really isn't a large loan for the commercial space. If you got it under contract for less than $1M, there are probably a lot of lenders that wouldn't even look at it (like Fannie/Freddie for example). 

Is the property held in an LLC or your personal name?

So I am looking to partner up with another investor friend on a commercial multi family property. I have done a lot of research on if we need to file SEC paperwork to have another investor for this deal (both of us have rentals on our own).

Please correct me if I am wrong, but since we would both be actively participating in managing the investment, it is not considered a security, and we do not need to file 15K in paperwork. Instead, we are simply business partners.

Now, if I was looking to raise money from the general public (or anyone for that matter) that would NOT be actively participating in the business, then I would be considered to be selling a security, correct?

Since it is a mutual business partnership of two active members, I should be clear, correct?

That is very doable in Chicago, it all depends on where you are willing to look. West side has it's tough neighborhoods, but you can cash flow. also, you should brush up on the Chicago LTO to make sure u are compliant (or if renting in the city is even worth it, some guys skip Chicago all together and go into the suburbs...

I have personally seen so many of these applicant issues. Its nice to see I'm not alone! lol

@Account Closed Yes, you are crazy! lol. Carpet and pad is wayyy less work than that. Remember, part of your job as an investor is to control costs. :)

We are currently working with a broker in FL and he discourages investing in a flood zone for investment properties unless you are buying something beach front and will air BNB it or something. Too many things can go wrong with REI to begin with, why add an extra headache and insurance cost?