All Forum Posts by: Jonathan McGarrity

Thanks for the input. This makes sense. 

I am securing lending for an LTR. It is the first property our LLC is purchasing. There are 3 members and ownership is split equally. The plan was for me to be the sole guarantor. The lender wants the guarantor(s) to own at least 51% of the LLC.

Is this the standard?

Is there a good way to make one person 51% owner of the LLC but distribute ownership of actual assets equally?

Thank you.

 This is really interesting. That's a strong argument and not something I had considered. A few questions and please correct me if I'm thinking about this wrong:

How do you factor in cash flow? Even if house hacking one would be paying much more out of pocket on the mortgage than what they would spend renting. A quick look at a 30yr mortgage with 3.5% down and 7% rate shows payments of $8k.

How do you think about the interest rate? If the property appreciates at 3% that is a significant, especially when you look at monthly and annual growth. But the interest will be double that amount. That seems to negate the appreciation but I feel like I'm missing something here and I can't put my finger on it.

I am in an area where SFH are 900k-1.2M. When you mention those numbers are you thinking Multifamily, where renters could cover more of the mortgage?

Hi Devin,

I am also new to real estate and live in southern CA. Price has been my biggest obstacle and my focus is out of state. Are you considering long-distance investing?

@Benjamin Aaker Keep it simple, write everything down. I like it, thank you.

@Bob Stevens I'm looking to explore my options and see what others are doing. The context everyone is giving me is helpful. I like your keep it simple strategy. I imagine it could get convoluted real quick.

@Henry Clark You've given me a lot to think about. I had not given any consideration to death. I'm going to revisit the operating agreement.

@Nathan Grabau Thank you Nathan, this is helpful. 

I recently started an LLC with two partners. I'm long distance and they are both local. I am evaluating deals, providing the capital and securing lending. They are visiting prospects, rehabbing and managing properties. We are closing on our first two deals. What are ways to structure compensation and ownership?

Much appreciated Bjorn.