All Forum Posts by: Jon Kelly

@Daniel Dietz great insight, thanks for sharing! 

@David White another thing to consider is adding an acquisition fee (2-3% of acquisition price) for finding the property or an ongoing "management fee" (2-5%) for the person(s) managing everything associated with the property (e.g. managing property managers, contractors, paying utilities, paying taxes, legal, etc.) 

BP Community, does anybody know of a company that creates indoor self-storage units for the owner to assemble? 

I purchased a commercial space and I'm planning to put in ~16 indoor self-storage units. I'm trying to find a company that makes self-storage units and then I can assemble them on-site. 

I'm curious to know the company, price and any other advice that others may have who have done this before.

Thanks in advance!

Jon

@Dan Barli, thanks for recommending. I looked into that, but I would prefer a referral. 

@Allan Szlafrok, I just sent you a PM. 

Any other recommendations would be appreciated. 

Hello, 

Are there any investor friendly agents in the Jersey City / Hoboken area? I have a few properties that I would like to setup a showing for. 

Please let me know!

Thanks, 
Jon 

@Jeffrey Holst, that's really helpful, thank you. I've heard of offering a guaranteed minimum %, and then sharing profits above that. But, instead of the guarantee, I like the pile-on or roll-forward idea you mentioned. If we make less than 6% in any one year, we carry the shortage forward. 

Do others have any successful partnership / investor deal structures that they would share? 

Thanks, 

Jon

@Jeffrey Holst

Making sure I understand because I think I like that structure: 

It's a split of 80% them / 20% me up until the 6% preferred rate (i.e. $15K). Anything over the $15K is split according to the equity arrangement, 75% me / 25% them. Is that the idea? 

Would this structure still hold for any potential appreciation made? For example, if the property is sold for $1.5M in 5 years, we make $500K. 80/20 split until $15K, and then equity split (75/25) for anything over? 

@Jeffrey Holst, @Bob Green, I really appreciate your thoughts here. 

Here's a hypothetical scenario: 

• Purchase price for multi-family property: $1,000,000
• Down payment:  $250,000 
• My sole member LLC is the only firm on title
• I contribute: $50,000 
• 1 other investor contributes $200,000

If we do a proportionate split the equity will be 20/80. 

OR

What other ways would you structure it if I am taking the risk by being the only company on title AND I bring some degree of experience and knowledge to the table, while this other investor is entirely new to real estate and wants more of a passive role? 

I understand there are countless ways to structure a deal, but I am trying to leverage my experience, knowledge and time spent on the deal going forward. For example, I would make all decisions related to the deal (i.e. property management company, rehabbing, selling, etc) 

Thanks, 
Jon 

Hello BP Community, 

I've started building a small portfolio of 4 properties and 15 units. I'm interested in expanding, and one way to do that is to bring in additional investors. I'm struggling with coming up with how to structure deals with additional partners/investors.

What are some examples of successful partner / multiple investor deal structures? How do you determine equity and ROI per investor?

Thanks all! 

Jon 

@Shawn Chaconas

The property looks lovely! I'm not interested in purchasing that one, but I am an investor that recently moved to JC. Are you an agent that works in JC and Hoboken? 

Thanks, 

Jon 

@Rigo V., didn't realize the question was choosing between PA and NJ... 

In general, PA is more tenant friendly. However, if you find a reputable property manager, then it becomes less of an issue. My advice would be to not be afraid of overpaying for a quality property manager. Paying an extra 1-2% for a high-quality PM will help to avoid headaches