All Forum Posts by: Matt Quinney

If I were to invest into a vacation property with a friend and we wanted to own it as a Tenant in Common (TIC) so as to maintain individual capacity for a future 1031 Exchange, can we have a managing partnership agreement they would govern those TICs? Is there another strategy that would work better?

Thank you all. I figured it wouldn't be that hard, but as a rookie, you never know. I work for a title company so I have that covered and I have several lender options available. My dad and his friend have both been GC in the past (his friend still is) so I have access to all that as well. I certainly plan to put inspection and financing contingencies in the contract. 

I have an opportunity to buy my first flip with my brothers and the property is off market. In an effort to keep costs low for the seller in order to incentivize a better purchase price we're hoping to go with no agent for the acquisition.

Is this the right strategy? What do we need to be watching for if we proceed? Please help!

Matt

@Louis Davis I get the idea of buying under value to get built in value at the beginning. I'm just concerned as I look at all the expenses being discussed such as Cap-Ex and others. There isn't a ton of room in there for all that.

@Louis Davis that's sort of how I was thinking about approaching it. My neighborhood for example can support $2000. The big issue is that at full value on the house, a mortgage will cost over $1500/mo. That doesn't leave a lot of room for other planned for expenses and still making a decent cash flow. I really have to find other neighborhood to invest in.

I have a real estate agent asking me if I can connect him to a lender to help finance a property as well as the rehab costs, possibly through a 203k loan for a residential property. I'm still new enough to this that I haven't built up the connections. TIA

I understand the 1% rule as it applies to charging rent but it seems unrealistic in our neck of the woods. In my neighborhood we had a home recently sell for $465,000 but there is no way you could ever charge $4650 for rent in order to meet the standard. What is reasonable for this market? Is there a different philosophy to make sure one is getting into the right deals? Should I be more focused on making sure the rent supports a 1-2% true cash flow approach?

@Amy Kendall that's helpful. Maybe I'm over thinking this. It would not be the first time.

@Jordy Clark Thanks. I look forward to meeting up with you guys in the REIAs.
@Amy Kendall I think this is where I'm getting stuck. I don't really know how to write the plan; my wife even less so. She's on board, but I'm going to have to come up with the backbone of this whole thing then sit down with her and discuss specific goals, such as the Papasans discussed on the podcast some time ago. I think what I really need is the direction of how to start and write that plan. I have the very basics in my head but I just don't know how to translate that to paper.

@Brian Gerlach thanks. I don't know how active our REIA group is here in Salt Lake City but that's mostly because I haven't checked it out. I'll have to don that today.