All Forum Posts by: Larry Smet

Even though you're family, don't forget to spell everything out in a contract or partnership agreement. I'm Canadian but have completed a number of flips in the US while living in Canada. I'll echo what others have said - make sure your investor (and you?) structure your entity correctly so they don't get charged extra tax (common if the entity is an LLC). A lot of Canadian investors opt for a limited liability limited partnership (LLLP) which might be a good option if you're going to be a partner. It's critical to get advice from specialized cross-border tax accountants (not your local CPA!!) as well as an attorney that specializes in entity formation for foreigners.

Bank accounts can be set up remotely and contracts can be signed remotely as well.  Working in Illinois (where all real estate closes are handled by attorneys anyway) I just give power of attorney to my attorney - for executing the contract only.  :)

Partnering with "boots on the ground" is a great way to do business.  It's worked for me multiple times and sounds like a good opportunity for you and your investor.  Just make sure the numbers work and you have an agreement that covers all contingencies in case it doesn't all "go to plan".

Good luck and let us know how it all turns out.

Welcome to BP @Albert W.

It's great timing to buy in that area - we're actively flipping properties in Irving Park and Logan Square and have seen really nice appreciation in the whole area.  Let us know how the rehab (and landlording) goes.

Hi @Brie Schmidt - I have to say that in my opinion you would be a great candidate for another appearance on the podcast so we can hear more about what's happened during the last year.  Anyone else who agrees should add a vote to Brie's original post.

Hint, hint @Brandon Turner and @Joshua Dorkin

Fantastic news @Brie Schmidt! You're an inspiration as to what consistent hard work can result in! 

After you cut your teeth with a small multifamily, what was the most challenging aspect of moving up to buying packages of properties? 

Best regards, Larry 

Hi @Hai Loc

I think @Don Harris has it right:  if you know this contractor really well then it can work.  I'm just finishing up a flip where I partnered with my contractor AND my broker.  But I've also worked with this contractor on multiple projects as a GC (not partner) and I know he does good work.  AND I also insisted that both the contractor and broker have skin in the game (but only 1/4 of what I put in).  We're set to list in a couple weeks and it's turning out beautifully.

If you make it to the May 24 meet up (and if I make it - lol) we can discuss in more detail.

Cheers, Larry

Congrats @Roman Pak

What a great job - your rehab turned out very nice which is why it sold so quickly.  You'll see that the process gets easier and easier, especially after you get the first one or two under your belt.  Thanks for sharing with everyone.  Your flip reminds me (almost exactly in some ways) of my first flip - only you did a much nicer job and made more money!  lol

Keep up the great work!

Hi @Carrie Giordano

Sure, I'd be happy to - drop me a PM and I can answer any questions you may have. 

I generally don't visit any of the properties - that's what the team is for. ;)

Don't get the wrong impression - it's not that out of state investors don't stay on top of their rehabs, we just need to do it in a different way.  

6% is pretty standard - I'd budget for that.

I just closed the sale of my latest flip yesterday.  It's a great feeling which you'll see soon.

Getting there, getting there!  Nice job @Roman Pak, keep it up

The countdown is on!  :)