All Forum Posts by: Jason Gott

So, if it would appraise at $330k (BIG difference between list price and appraised value, so don't be steered by the list price) and I could get it at 75% = $247,500 including closing costs and renovation costs

I tend to forget to base deals off of ARV and not the list price. Thank you for helping me see this. Now this being a Commercial deal how would that work as far as bank financing? What you all are saying is have the seller pay the 25% Down, and I fund the rest? What are current commercial rates running around?

Again Thank you all for the replies, they are all very helpful.  Yes the repairs are again just an estimate I haven't even walked through the property yet and plan on having a contractor or two with me when I do.  This would be my first ever commercial deal, I'm excited and also nervous as crap! 

Jason Gott how much money do you have? If you can get the seller to sell for 100k less then they’re asking in this market hats off to you but I find that unlikely.

I would probably use private money but that’s going to be hard to do if you have no experience.

So if I’d used private money before I’d do that but if you haven’t, the likely best (read most likely option) would be for you to pass on this.

Use your own money/time/effort to do your own deals, on your own before partnering or using someone else’s money.

Start small and grow bigger over time. When I acquire my first property of this size people will look at me and say “how does a guy in his early thirties do that”

What they won’t know unless I tell them, is I’ll have been doing this for close to ten years by then and I doubt there won’t be much I haven’t seen by then.

I ask because you wrote that is listed for 330k but you need to get it for 228k.
What did you mean by that?

Do you need to buy it for 228k to make the numbers work?

Hi @Jason Gott, you should definitely draw up partnership agreement using an attorney who knows real estate law if the both of you are doing a deal together. I would further recommend that you both partner in an entity like a LLC with your LLC as the 50% member and the other party can participate as an individual if he/he wishes. The LLC operating agreement would serve as the partnership agreement, plus the LLC will provide a layer of asset protection for both of you

Forgive my ignorance Bob, I get having an LLC but would I need a new LLC every time I got a different partner on a different deal? Or can I use my current business LLC and add him and other's to it? Again I will be talking to a lawyer I just don't want to look like a complete idiot when I go in.

Hey Jason,

For this I would suggest talking to your lawyer especially if this is your first time taking on a partner.