All Forum Posts by: Jonathan Barr

Hi,

I would say if you can avoid going into business with your wife.   Keep her informed and maybe she can do something small on the side.   Help you with bookkeeping or something.   My parents have been involved together in real estate for most my life.   I worked with them for time as well.   I just saw a lot destructive behavior because of emotional roller coaster they would have.   So in my experience I would recommend against it. Then the work will seep into your personal life and there will be little boundaries.

  Now I work with my brother and we get along fine.  We are two dudes that don't get to emotional about things.   Yet we have open and clear communication.   I couldn't think of a better partner because I trust him with my life.

That being said I don't think its impossible to work with your spouse.   I just think it brings on an additional set challenges if it can be avoided I would.

I agree with what Nicole says. What I would add is just be more conservative on your ARV(after repair value). If the deal still works then move forward. Lets say we take a 10% hit next year but you account for that. Than you can sale and still hit your numbers. If it doesn't go down then you just have the cherry on top.

Its fine line being to conservative so you never buy.   At the end of the day some risk needs to be taken but hopefully that is way to mitigate it some.   Right now is not the time to be pushing values in anyway even if trend seems to be going that way.   You need to be a contrarian during this time.

@Will Gaston Agree with above. I would add value your numbers maybe 10% less on ARV just to take into account possible hit prices. I don't think we have 2008 on our hands again but we will see pain from this. I don't right is time to shy away from deals. You just need find new ways to mitigate that risk. Maybe that will affect your offer price and then you pass if doesn't work. Right now is not the time to get into deals that maybe are on the fence. Especially if this is your first flip you need to leave cushion for mistakes your will most likely make. That's my two cents.

@Isaiah Moore Got it for some reason if you come across any larger multi-family like 50+ units let me know.   I am interested in that area.   Maybe one of the owners you talk to happen have larger properties as well.   We can figure a way for you to be compensated for that.

I don't know if any but I was thinking of creating one here in so cal.   What are somethings that you would like to learn about? Are you looking more to be active or passive?  I'm happy to connect with you general and give you my two sense on it. As I have now done two larger multi-family deals out of state.

Just curious what kind of properties you are sending this letter too?

I would buy as many units as you can with the cash you have on hand. Or maybe think about renting your primary residence and then buy a 4 plex that you live in with a FHA loan. Yes you will need to pay for mortgage insurance but the little money and where rates are right now will make up for that.

Your title company can pull that information for you.   If you keep them busy they should be able to do that for you complimentary.

also you make it clear to the cosigner that they are on hook if main tenant doesn't pay.   A lot times its someone's parents co signing for them.   So they are usually understand that.   I think its good to have that conversation.

I wouldn't try to mess with developing and building new if you don't have experience.  To much bureaucracy and approvals from many government agencies.   A lot the control leaves your hands in those situations.  If you are in an expensive market right now is a good time to sale and 1031 into more units.

I have been selling duplexes I own in LA and doing 1031's into multi-unit buildings in the Midwest.   Its so far been one of the best decisions I have ever made in my life.   Not mention no longer having to deal with rent control. Let me know if you need anymore guidance.