All Forum Posts by: Jim Kittridge

@Roy Gottesdiener

As others have mentioned, reaching out to operators here and on LinkedIn is a great way.

Also. I would recommend asking each of the herbs other syndicators they would recommend because you’re looking to diversify funds across 2 or 3 of them. You’ll get better recommendations because their success will reflect on the operator you’re talking to.

Best of luck and make sure to do your homework!

@Jeremiah Fennell

I’m buying a rentals and flips in the Charlotte Metro. We slowed down during March-May, but are back up at full speed.

UC to purchase another 8 houses currently and actively looking for more.

@Brian H.

$100k is enough to be a private lender on smaller deals in a lot of markets.

Most flippers will pay 7-13% interest, paid monthly.

If I were you, I would go to meetups and talk to people in your market. Find out who the most experienced flippers are and who is reputable.

A couple things you’ll want to do:

-Make sure you get a 1st position lien and that the short term mortgage docs are drafted by a reputable RE attorney

-Background Check

-Make sure the property has at least 30% equity

A few more options are crowdfunding sites that do the work for you (LendingHome) or syndications if you’re accredited.

When in doubt, ask someone more experience for their advice or to review a deal before you invest $100k.

There are a lot of options but it really comes down to what your investing goals are first.

I'm not in your market, but I like the fundamentals of growing submarkets of major cities. They are typically cheaper to purchase, have good appreciation, and better rental returns.

You can also put the money to work passively by short term lending on flips. You'll typically make 8-12% interest with a 30% equity position on the property. If you're buying at 3-4%, that is a nice spread. Just make sure you do your proper due diligence and are protected with a 1st position, well written mortgage and appropriate insurance policy.

We've brought acquisition associates in house and have had good success with that.

Hey James, that isn't enough to fund a deal by yourself as you probably know. There are numerous online crowdfunding sites that would be worth looking at for fix and flips.

I can't speak for their returns or security, but a few to start looking at are Peerstreet, Fundthatflip, & Patchofland. 

There are other large crowdfunding sites like Crowdstreet & Realtymogul, but they are for longer hold periods.

As with any investment, be cautious and do your own due diligence. For example, Yieldstreet has had quite a few defaults as of late and has a class action lawsuit going on over $100M of investor funds that were lost.

@Owen Dashner's advice is spot on. LLC taxed as an S-corp is typically the bet for LLC's that are netting >$100k/year.

It would be worth some time to research the tax and legal implications before consulting with your CPA & attorney.

My best advice would be to partner with an experienced flipper for 2-3 deals to get the experience you need.

Everyone does things differently, but we always make lawn care & all utilities part of the tenants responsibilities on SFR. We don't have requirements on watering lawns, but if that is important to you or your area, you can include that in the lease.

As for liability, I carry liability insurance for all units within our LLC's as well as an umbrella policy for good measure.

Also, it's smart to wait another year to avoid cap gains. Keep it up.

You definitely want to iron out all of the details and get an attorney involved. 

Having said that, I haven't seen a partnership where you're splitting the profits but maintenance or capital expenses are the burden of a single member. You typically treat those expenses and expenses for the LLC.

You need a provision in your Operating Agreement for capital contributions and capital calls and how you want to structure them. The traditional way for capital calls is that the members contribute the amount needed based on their equity in the LLC. You will also want a clause for if a member is unable to meet the contribution.