All Forum Posts by: Kyle Wilson

@Basit Siddiqi Thanks for the TIC comment. I'll have to look into that as an option. As far as our plan, since it's our first deal together, we hashed out all the possibilities and made sure we were okay with any of the outcomes. We have multiple exit strategies that we have decided would be satisfactory. It depends on how good the deal is that we find. If it ends up cash flowing really well, we will end up holding it longer. If not, it may turn into a flip. Our hold time will depend on how long my partner stays local, since he's our boots on the ground property manager.

@Katie L. Thanks! So if we do a general partnership, we each have unlimited liability on the property. My mortgage broker said it would be easier to purchase the property like this vs an LLC. Why I'm thinking about the LLC is for the liability purposes. My mortgage broker said we could purchase the property as a general partnership to make the transaction smoother and transfer it to an LLC. Does this sound correct?

Any CPAs/attorneys or other experienced investors who have out there who would recommend how I should form a partnership for a one-time real estate deal?

A friend and I would like to do a real estate deal together in California (he's in CA and I'm in UT). I think it would be wise to draft a partnership agreement just to have expectations written up in advance. We're open to doing a flip or a BRRRR and holding it short (flip) or 2-5 years or longer, depending on what we run into. The plan is for me to provide the credit/financing/mortgage, and my partner is providing the down payment.

What advantage would there be to creating an LLC or an S Corp? I'm pretty sure both of those entities can own the property. Can we buy it as a simple partnership, too (put both of our names on the mortgage)? My main reason for thinking to create an LLC would be for liability purposes to protect against tenants. But now I'm thinking about it, I wonder if it would help protect against me owing all the mortgage if the deal goes bad and my partner leaves me dry. The chances of that are extremely low, but I think it's good to be safe.

I'm familiar with how S Corps can have tax advantages by paying yourself a lower income of the net profit, but since our annualized income from the property will be relatively low, I'm not concerned about that as much (unless it saves $ if we decide to flip the property?).

I have a couple of English-speaking Venezuelan friends who have fled their country recently and starting their lives over from scratch. One in Brazil, one in Colombia.

My questions: how often do real estate investors use VAs? What is the typical hourly pay? What is the best way for a VA to find work (particularly for real estate investors)?

As a newbie looking to do my first BRRRR or Fix & Flip, I'm realizing I'm not sure what the proper protocol is with regards to lining up cash for the deal first (hard money) vs getting a deal under contract first, then securing hard money. How does it usually work? Is it okay to get a deal under contract first, and then talk seriously with a hard money lender? What happens if I don't get approved? Just back out of the deal and get my earnest money back?

(I am speaking with several hard money lenders first, so I have a small relationship already established, but they are saying once I have a deal, they can talk specific numbers, approval, etc).

Does anyone have a Self-Directed IRA horror story they would like to share?

I attended a national REIA meeting last night on Self-Directed IRAs (presented by Equity Trust). I can definitely see all the PROS, but I'm looking to see what the CONS are. Last night I learned the basic benefits, how to do it correctly and what not to do. I read several articles about it on BP, but I haven't come across any real-life horror stories. What's the worst thing that can happen if you do it wrong?

@Mindy Jensen, oh good to know! So maybe we would focus on prioritizing the rehab for the first 60 days and finishing whatever we didn't get to after we move in. My wife (and I), would want to minimize living in a construction zone with small children as much as possible.

Thank you everyone for giving me the vocab I was missing! I think that in addition to my MF rentals that I want to pursue, I'm wanting to do a live-in flip (sell after 2 years to avoid taxes) on all my personal residences.

Although Mindy, you brought up the fact that living in a construction zone stinks. Is it possible to pursue a live-in flip without living in the home during the rehab?

I am a newbie looking for my first deal (a duplex, triplex or fourplex), and I had the epiphony last week that every time I buy a home to live in, I should be applying the same strategies used on real estate investing on my own personal residences.

My wife and I are getting close to upgrading to a new residence (baby #3 is on the way). What I want to do is buy using the 80% rule. For example, pay $60k for a home, $20k rehab, and ARV is $100. That way we are building wealth on our personal residence each time we upgrade.

What us the easiest way to tell others the strategy I'm trying to do with my personal residence? It's not exactly house hacking, since I'm not renting part of the property to anyone else (though we're not opposed to hacking a duplex if we find the right layout and yard). It's kind of like a BRRRR without renters, since we might pull money out.

We have a friend couple who have done this with three homes now. They buy an ugly property, fix it up while living in it for 2 years, buy the next one and keep the old one as a rental.

Would love to attend! Booked that evening already :(