All Forum Posts by: Joe S.

Basically, you’re going to have to do research above and beyond the Bigger pocket forms on this one. Now that particular niche would not be my cup of tea out of the gate for sure. I think a number of posters missed that you plan on it being a house just rented just to that particular segment. Where you’ve read or heard about this niche is where you probably need to get more information would be my opinion.

1 Vote

Quote from @Henry Clark:

I wouldn’t do it.

1. At some point he will want to or should want it just to be him. He should want to keep the same LLC so he has the history behind it.

2. If he goes to either dissolve the LLC or buy you out it could create some cash issues for him.

3. If you're not really good at writing the LLC operating agreement you could get sucked into a bad situation.

4. To me it is better for him to do a consulting agreement with you. If he wants you to share. Taxes will be higher for you but less risk.

If you move forward with the LLC then reduce exposure. Build these into the Operating agreement.

A. How to value and you sell out.

B. Loans and bank accounts require dual approval to add and for transactions.

C. Credit card and account limits are small enough to trigger early payment.

D. Would do term insurance on both of you for 5 years. The other is the beneficiary or the LLC.

Can you elaborate on point C more?

0 Votes

My oldest son recently opened an LLC in order to start investing. He hasn't done any business with the LLC as of yet. He is wanting me to help him with his business and give me a percentage of his business now after the fact that he's opened it. Of course, I originally told him that I could help coach him and it would be his business 💯%, but he feels better if I own a portion of it and would be a little more active with helping him getting it up and running…
Would it be simpler just to open a new LLC and close down the first one? He hasn’t even opened up a checking account yet.

0 Votes

Quote from @Justin Brickman:

Independence title

Which location?

0 Votes

What kind of job do you have and what’s your pay like currently?

If you have a high paying gravy job, I would think twice before quitting.

There are DSCR loans out there available that do not go off your W-2 income.

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Indianapolis, Indiana

I do not totally agree with having to find a job directly related to real estate estate in order to get into real estate.

Getting a reasonable job as far as income and then using that as it means to buy properties and being able to self educate, I believe is a simpler path.
There are some VERY EASY to get certificates/license that would start her off at above pay scale for most entry-level jobs.

Hint… (Dental assistant.) Easy to get, low cost out-of-pocket and some cases could easily make as much or close to as much as a teacher that takes years to learn, a truck driver, etc..

0 Votes

Minneapolis, Minnesota

Quote from @Peter Walther:

Quote from @Joe S.:

Quote from @Peter Walther:

Quote from @James Hamling:

Quote from @Peter Walther:

Quote from @Don Konipol:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Don Konipol:

I've read all the posts providing posters personal opinions based on their experience, knowledge, biases, and specializations within the real estate field.

The many NEGATIVE opinions, while not changing my mind that sub to CAN be done safely, have opened my eyes to the very real risks involved and the difficulty of structuring the transaction so as to protect all parties; I was also surprised to learn of how many investors have observed unsatisfactory outcomes with these type deals.

So, based on all your feedback, I have come to the following conclusions

1. While subject to. transactions can be done safely, it is most difficult to accomplish in residential transactions where the seller is a homeowner and not an investor.

2. Full disclosure of the negative consequences (retention of liability without ownership of the asset securing that liability, limitation on credit capacity, etc.) must be provided the seller IN WRITING.

3. ALL parties should be represented by an attorney experienced in real estate

4. Buyers with limited knowledge, experience and capital should not engage in this type transaction

5. A subject to transaction involving commercial property and two professional real estate investors is an appropriate venue for a sub to transaction

6. the buyer should be fully prepared to refinance or payoff the existing loan if it is called due, and should have the capacity to do so.

7. the legal structure and documentation should be prepared by an attorney experienced in subject to transactions.

8. Avoid anybody who was a Pace Morby student

Sub2 is for criminals and con artists. Anyone who comes on these threads and talks about doing Sub2 deals is garbage.

Jim Luv you Bro but your over the top on this one..

yeah, I often disagree with Mr Wise, but I LOVE the fact that he unequivocally states his opinion. Even when he implies that I’m “garbage”. This is the second time I’ve been called garbage in the last 6 months. The first was by Joe Biden. LOL

Was it really necessary to inject politics into the conversation, after all, I didn't mention the sociopathic narcissist currently occupying the white house or the chaos he's creating or his running buddy who thinks I'm a parasite.

" ....after all, I didn't mention the sociopathic narcissist currently occupying the white house or the chaos he's creating or his running buddy who thinks I'm a parasite."

Bidens back at the White House ?!!

I wouldn't get all up in arms, I am sure he's just having an "old-timers" episode again one of the wranglers will get him a 10yr old to sniff to coax him out soon enough.

While Biden certainly wasn't up the task of being President, he didn't have over 100 mental health professionals opine that he is mentally ill. Nor did he have many of his handpicked advisors such as Rex Tillerson call him "a fuc*ing moron", yet many seemingly intelligent individuals insist that Donald Trump is the greatest businessman who ever walked the face of the earth. Forgive me if I seem confused.

Good morning Peter,
Following media affects some people more negatively than others.
Below is something someone just text me out of the blue probably less than 10 minutes ago. I read it and hopefully took it to heart. I’ll paste it below.

My goal is to daily have a happy, cheerful heart.

Words to live by:

Proverbs 15:15

For the despondent, every day brings trouble;

For the happy heart, life is a continual feast.

Proverbs 17:22

A cheerful heart is good medicine,

but a broken spirit saps a person’s strength.

I’m

In child of the King!

Nobody in this world is gonna break me!

I’m blessed and highly favored!!!

Big BOOM ‼️

Proverbs 18:15 – “The heart of the discerning acquires knowledge, for the ears of the wise seek it out.”

Micah 6:8 – “Act justly, love mercy, and walk humbly with your God.”

Isaiah 10:1-2 – “Woe to those who make unjust laws, to those who issue oppressive decrees.”

Amen!!! Those are wonderful scriptures, brother Peter. 😁