All Forum Posts by: William Morgan

Pedro,

Just wondering what company you ended up using? My mother has a few properties with a company she is really not happy with so she is looking to switch

Thanks,

Will

Clay Smith and Chuck B. Recommended Greg Jones too so I think that's who I am going to go with. For the inspection. Does anyone do radon/surveying independently or just have the main inspector do that?

 There is the local investment association Kreia. Also a few BP members are meeting up next week https://www.biggerpockets.com/forums/521/topics/253225-meetup-in-louisville-ky-meet-network-learn-on-site

Ok I am definitely going to do my best to make this one. It's going on the calendar right now!

My real estate agent gave me this list and I was wondering if anyone had dealt with any of them in my area?

Home Inspectors

Wrubel Home Inspections LLC812-945-7478http://wrubelhomeinspections.com

Certainty Home Inspections

866-417-9591

http://www.certaintyinspections.com/

HomeTeam Inspection Service

(502) 357-0813

www.hometeaminspection.com/louisville

Alan Davis, Elite Home Inspections, LLC:
(502) 648-9294

www.elitehomeinspections.net

Greg Jones Home Inspections and Associates, LLC
502-429-9379

www.gregjoneshomeinspections.com

Termite Inspectors

Bright Pest Control:

(502) 452-9600

www.brightpest.com

OPC Pest Control:

(502) 969-9635

www.opcpest.com

Black Diamond Pest Control:

(502) 585-1919

www.blackdiamondpestcontrol.com

Mold/Radon

Joe English, World Radon Control:

(502) 718-1330

[email protected]

Survey

Richard Mafeney

502- 966-3446

Ron Wurzel

502-339-4901

Brad Armstrong Land Surveying

502-543-4607

Darn, I wish I would have seen this yesterday! How was it?

@Diane Bartley

Thanks so much for the feedback. These are definitely great suggestions. 

I see on your profile that you invest with a partner in my area. If you don't mind me asking how is that going?

Yea I am not married but I have already had the conversation with my SO that we need to keep our investments separate... I have seen some of the bad results that can come from that.

Thanks for the replies. To answer some of your questions:

@Joe Fairless : 

We are looking for small multifamily properties but not necessarily limited to 4 unit as he has done several commercial deals and is willing to guarantee it if it comes to that. 

@Craig Jones:  

I really appreciate your feedback and this is exactly what I came here looking for. I will admit that I oversimplified the process a bit. The conversation about a deal began on a buisness trip back in February and we have since discussed several scenarios of the partnership. To your point though: to date the discussions have revolved mainly around  how to structure the deal and what it is that we are looking for. I am fully on board with going through various"what-if" scenarios. An issue here is that being new to the industry, my imagination for possible scenarios leaves something to be desired (and hopefully something I can improve on in this forum). I have read several articles about this and probably the best one so far has been this one:  http://www.realestateinvestorlaw.com/Articles/arti...

Thank you for your listed "what if" scenarios, I will discuss these with him. If you wouldn't mind sending me or posting the list of questions you found that helped you find out that your partnership wouldn't work I would greatly appreciate it. Also like Michael I am curious as to what your deal breaker was. If you could elaborate a bit I feel that could be a big benefit for me.

@Michael Seeker

I would pay market rent for the apartment. If I move out I would still be the PM. If I don't want to be the PM or I am not doing a good job, we could hire a local firm. I would then still be responsible for paying the loan with my W2 income. The property can be sold if either of us wants out of the deal. If at that time the loan is not paid back, I would be responsible for the rest of the loan. We don't have terms drafted yet for who determines how much.

Ok so a co-worker and long time family friend of mine is also a successful commercial real estate investor in my area. When he learned about my plans to begin investing in real estate he wanted to get involved. I am 1.5 years out of college so I have about enough saved for a 3% down payment on an FHA Loan on an ok multifamily... i.e. not a lot of capital. We sat down after work yesterday to try to come up with a deal that works for both of us. What we came up with and what I am looking for feedback on is whether this sounds like a good deal and anything I need to consider that I may not have.

He wants to start an LLC with me 50/50 ownership. Problem is I don't have the capital to put the down payment down. So our solution is to have him put 100% of the down payment down into the LLC. 50% would be his down payment and 50% would be a loan (no interest) for my down payment. I would act as the live-in manager for the property for a gross rent fee of 10% - market rate paid by the LLC. That money (as well as surplus from my W2 job as an engineer) would be used to pay him back personally until I cover my half of the down payment. After that It would be as if I had the money today.

Budget is a bit all over the place. He stated he only cares about long term ROI on the property - mainly focusing on sustainable cash flow with the reasonable possibility of appreciation. So far we have looked at 150k-500k buildings and he said he would be willing to go up to $1M if it had a good ROI.

Location is Louisville, KY. 

This seems like an awesome deal for me considering I get a massive amount more leverage with him and this could be a jumping off point as well as being on the better end of the current value of money deal. I am planning on getting a contract agreement drafted by a lawyer before we purchase a property.

All constructive feedback is greatly appreciated.