All Forum Posts by: John Brown

Thanks

Quote from @John Underwood:

Pretty much the same except you don't own it and would need consent to make changes.

Also the owner gets all the tax benefits as they are the owner. 

I would be a job for you, but could be lucrative depending on how you structure the agreement.

I think I would do a partnership like Mrs. Miller said above. One draw back OSS it’s about 5 hours away from me so I would have to a local PM to over see it. I have zero experience with STR and am trying to get into it. Any info would be appreciated.

Quote from @Katie Miller:

Are you saying you would long-term rent it from your friend and then run it as a short-term rental? 

An easier route would be to convince him to go in on the short term rental together in a partnership. You manage the headache of guests and communication, cleaning, etc. and he provides the property, but shares in the expenses and profits. It's less risky for you if it doesn't rent well and it's more profitable for him (most likely) without the headache. 

Yes that's what I was initially thinking… then I started to structure the deal in my head and it looked a lot more like what you described with a partnership. Do you have experience with STR?

I have a friend with a property in a very desirable location in Texas that I believe would be great for STR. It sits on about 1000 acres 30 minutes from Fredericksburg. He does not want to deal with the headache of tenants cleaning or any thing to do with STR. The property is unused most of the year.

How much harder is it to run an STR on a subleased property? Also any tips for automating this as much as possible and how to protect the property financially and property management would be appreciated.

I am looking for a light industrial property in Texas. Have not picked the exact market yet due to other factors but it needs to be near Port Arthur, Port Lavaca, Poteet, Pearsall and Pleasanton. All the “P’s” are totally coincidental. 

The property needs to be atleast 30,000 SF preferably 50,000, minimum of 2 loading docks that can handle 53’ trailers, 20’ ceilings in warehouse area. Also need approximately 5 acres of land. Outside covered storage would be a plus. 

Will be looking to move in after the first of the year. 

add me as well please. [email protected]

I'm interested. I have family that owns a marina on a popular lake. This might be an opportunity for a few of these to hit the lake. DM me if you are interested.

Quote from @Jacob Sherman:

go upto 100 units . lets discuss . What is the condition of the building ? 

 I have a 70 unit I am working on in Southeast Texas if you are interested.

WHAT WOULD BE THE BEST TYPE OF LOAN FOR THEM TO GET TO REFI ALL OF THE DUPLEXES IN ONE LOAN AND STILL BE ABLE TO TAKE OVER. I KNOW SOME LENDERS WONT ALLOW A TRANSFERABLE MORTGAGE. 

Quote from @Derek Dombeck:

You will have no equitable interest in the property based on the Master lease, so I would suggest also having an Option contract in place to secure your right to purchase the properties. You can not likely leverage that with debt, however you can sell a percentage of the Option for cash and use that as a down payment if you need too.

Have You suggested taking over the sellers new cash out refinance loan subject to at some point? 

You could also purchase the entity that owns the real estate, assuming there is one. This has some downsides to it, so I'm not a huge fan, but it is another way for you to consider. 

We have discussed doing a first right of refusal to buy the rest of his properties when he decides to sell them.

I have thought about buying the entity that owns them but I haven't discussed it with the owner in case it owns more than what i want to buy currently. 

I have considered taking over his cash out refi because i heard it mentioned one time before but i cant find any info on how to do this.