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All Forum Posts by: Kevin Starr

Kevin Starr has started 1 posts and replied 3 times.

@Joe Villeneuve - To answer your question.. yes, all the partners, including myself + wife have very good credit and could qualify for a loan.

I like the idea of setting up the LLC w/ partners involved. But I suppose that means you have to qualify for the loan as an LLC? Also, if I want to put $0 capital into the deal, what do you think my % ownership should be based on putting in sweat equity alone? Is 20% reasonable?

Arlan.. thanks for the comment.  My friends & family would actually like to have ownership in the properties too.  They're not interested in just lending me the money.  They've read about all the benefits to owning real estate long-term, and they want in.  But they just don't have the knowledge, time, nor the courage to jump into a deal themselves.  They basically want me to be the lead investor, and they just provide the capital as passive investor/owners.  How should I structure such a deal?

Hello everyone,

I'm in a pretty unique situation... I have many friends & family with a lot of cash sitting around.  They want to invest in RE but they're either too busy or basically don't have the guts to invest themselves.  I wonder what is the best way for me to partner with them to invest in rental properties (for long term hold)?  I currently own rental properties myself, and have never involve any 'outside' investors.

So, I wonder how I could take advantage of the situation and make it work for everyone?  I basically would do all the due diligence in locating the property, manage all the rehab, deal with contractors & property managers, etc.  All my friends would do is provide the capital for down pmt, rehab & other costs.  I wonder how other people structure this type of deal.  My questions are:

1) Who holds the title?

2) Whose name(s) is on the loan if the property is mortgaged

3) What percentage of ownership is fair for me (ex:  20% of ownership share + 20% of rental income)?

4) Should I put any $ of my own into the deal, or just straight sweat equity

5) Do we need to set up an LLC to do this?

I would appreciate any advice on how to structure this type of deal.

Kevin