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All Forum Posts by: Jonathan Chu

Jonathan Chu has started 3 posts and replied 10 times.

Post: Partnership with foreigner private money

Jonathan ChuPosted
  • Contractor
  • Los Angeles CA (los angeles, ca)
  • Posts 11
  • Votes 6

Hello Everyone, 

I have recently come across an opportunity to work with foreigners that would like to invest in the U.S real estate market. What I'm having confusion is the way to structure the paperwork. What would be the easiest way to document all parties involved in the transaction ? They will be investing the down payment portion of the deal and our company obtaining the loan and rehab cost. Once we exit the deal the profits will be split accordingly. 

*Is creating a LLC or Note? an option? If so, which structure would be best for this type of partnerships.

All feedback is much appreciated. 

Thanks.

Post: Would you get a sfr or 4plex as your first investment?

Jonathan ChuPosted
  • Contractor
  • Los Angeles CA (los angeles, ca)
  • Posts 11
  • Votes 6
Quote from @Malcomb Stapel:

@Jonathan Chu that all depends on how you run the numbers and what you are looking for (cash flow or high percentage ROI). My current best cash flowing property is a Duplex with a 19.5% CoC day one return.

My current best CoC purchase in the last year has been just over 30% on a SFR. While that deal itself has a better number profile, the duplex is still the breadwinner.

Obviously there are many factors at play here, but a big one is that I literally bought two 3/1 units for the price of a reasonable 3/1 SFR. One side completely covers the mortgage while the other provides the cashflow. You could see how this could get even better with the right 4-plex?

 Thanks @Malcomb Stapel it totally makes sense. Thanks for your reply!

Post: Would you get a sfr or 4plex as your first investment?

Jonathan ChuPosted
  • Contractor
  • Los Angeles CA (los angeles, ca)
  • Posts 11
  • Votes 6
Quote from @Jerry L.:

If it was me I would hack the 4 plex for sure


 Got it Jerry, ! Much appreciated

Post: Would you get a sfr or 4plex as your first investment?

Jonathan ChuPosted
  • Contractor
  • Los Angeles CA (los angeles, ca)
  • Posts 11
  • Votes 6
Quote from @Dallas Regimbal:

@Jonathan Chu It is difficult to answer that question without knowing your long term goals and how "passive" you want your investing to be. Typically, investing In multifamily units is going to allow you to scale faster and more efficiently. If you're willing to house hack you can get into the property with a low down payment of 3.5-5% depending on the type of loan you choose and then move out after the minimum requirement of typically 1 year and repeat the process. If you did this every year for 5 years you could own up to 20 units if you did that with single family homes doing the BRRRR you won't be able to get nearly as many units in that same time fram

Makes total sense. Thanks for your breakdown much appreciated!

Post: Would you get a sfr or 4plex as your first investment?

Jonathan ChuPosted
  • Contractor
  • Los Angeles CA (los angeles, ca)
  • Posts 11
  • Votes 6

As my first property to get into the real estate game. I just don't know if I should get a single family residential to do the Brrrr strategy and continue acquiring property's that way, or if I should get a 4 Plex and do the multi unit route.

What strategy do you guys recommend ?

Thank you in advance

Post: Would a hard money lender lend to a newbie

Jonathan ChuPosted
  • Contractor
  • Los Angeles CA (los angeles, ca)
  • Posts 11
  • Votes 6

Hello, 

I'm looking into purchasing my first investment property and would like to use hard money  or private money to finance the purchase if is possible for a newbie? would they even consider?  My back ground is construction so I am comfortable with the rehab process. 

( I do have cash available, but would love to gain experience with leverage )

I am aware of the current market situation, so everything would be in the assumption of having a great deal in hand. 

Thank you very much for your time, and all feed back is much appreciated.