All Forum Posts by: Kavin Kuykendall

The numbers above are with "ARV rents", and knocking off the current landlord paid water/sewer/garbage bill of $190 by submetering. This isn't a great cash flowing property at a $240,000 purchase price. And not a great COC either. We've been very upfront and honest with each other over the past few weeks of communication, which allowed me to honestly let him know I couldn't make it work above a $200k purchase price. This is when he asked about partnering to find a deal that works for the two of us.

Regardless of the details, how would one structure a partnership with a current owner where the owner has $100k+ of equity in a ~$250k deal?

Hey all,

I've been building a relationship with a seller in my area for a while now. He's personally selling his upper/lower duplex +studio but hasn't had much luck with it so far. Here are some specs:

Estimated ARV: $240,000-$260,000

Purchase price: We're in the process of negotiating but he currently wants at least $240,000

This property is currently under rented and poorly managed. 

I'll attach a copy of the rental calculator analysis for all the numbers.

He currently owes $135,000.

He mentioned today that he would consider partnering with me in order to make the deal work. Allowing him to get some cash out of the deal, plus stay in "the game" while allowing me to get in for less cash. The problem is neither of us knows how to structure something like this. Any ideas? 

Thanks all in advance!

Very encouraging! Thanks for sharing.

@Orlando Perez You really need to understand what each number means and how it affects a potential deal before you worry about analyzing deals. Watch @Brandon Turner’s videos on analyzing. Read his books. Literally google terms you’re unfamiliar with, that’s what I do. While the calculators are great, you should know how to calculate ROI, income, expenses, cash flow, etc. by hand. Attained the weekly webinars hosted by Brandon, he usually analyzes a deal every webinar. Keep learning, reaching out, and asking questions. Keep it up!

@Orlando Perez Well first of all, if it needs $20,000 worth of work, why’re you paying the ARV of $134,900 for it?

It sounds like I need to familiarize myself with local "usuals" and laws. Thank you all for the detailed responses.

So I notice a lot of multifamily landlords I talk to seem to be paying for water/sewer/garbage. Is this normal? 

For example, a house is split into an upper and lower unit, each 2/1. The current landlord pays ~$190 a month for the combined WSG fee. They are separately metered. I'd like to pass these on to the tenant. Is that unreasonable?

Thanks BPeeps

@Account Closed

 From what I hear that's exactly it! I'm pushing hard to get my first deal under my belt. I love the idea of the 1031 exchange and large multi family properties!

@Elliott Elkhoury I’m surprised by the opportunities out there available to new investors such as myself. The scaleability and creative leverage possibilities continue to amaze me!

@Nick C. I know more than a few who wish they had that knowledge! I wish I knew the timing of the next!