All Forum Posts by: Michael Evans

Hello, I have an off market 12 unit apartment building under contract in Point Pleasant WV. Im looking for local investors who know the area and can give me some insight on the area. Rent estimates are $450 to $500. 4 1/1 and 8 2/1 units. 2 units rented and 2 units rental ready. 8 units in need of complete rehab. Purchase price is $179K My estimated ARV $388K with a 10 cap. Im also open to partnering with an experienced local investor. Building was completely boarded up and vacant, current owner has justified about $60K in repairs and just wants to unload this one off his plate. I am not a wholesaler, i am a buyer anyone interested let me know.

@jeromeadams Looking for an update on this post, did you use them or heard any reviews?

@Odie Ayaga he has attempted to close on the property multiple times, but the SFH will not pass a home inspection in its current condition. He does not own the property, he has it under a lease option where he controls the duplex which he fixed and rented out. He has an option to buy the whole property, but prior to doing the work on the SFH he wanted to own it.

Also, the property will be a long term hold with everything including cash flow split 50/50, with a JV versus a LLC proper accounting of the income and expenses, what do you recommend for this?

@Odie Ayaga@Larry Richardson@Brennan Crick

what would be the benefit of a JV? We are in the process of working with a HML, I have discussed the deal with them, but they are waiting for the LLC to be formed. The property is a triplex, it has a duplex and a SFH on the same lot. Both units of the duplex have been completely rehabbed by him and rented out, the SFH is in need of the rehab, but is livable and currently has long term tenants.

Hello BP,

Question on the below scenario

I was browsing the BP market place and found a property for sale in the market area i usually invest in, i recently moved away. I reached out to the seller and recieved information about the property, upon further discussions found out he had it under contract but could not finance the deal, so we disscussed partnering on the deal. Number are 140K purchase price rehab budget 10K no labor cost and ARV 215K to 230K. I currently live out of state and he is local. I will finance the deal with the cash and credit score and he found the deal and is pretty handy, he will do the work and manange the property we are looking at forming a joint LLC. Long term hold with everything split 50/50, including cash after refi.

What are some ways of structuring this partnership?

What are some ways we protect each others interest?

We will use hard money and refi into a conventional long term loan( BRRRR) any advice will help?

LLC vs joint venture agreement, what would be best?

Thanks for the help BP family!

Hello BP,

I have a question, is there any difference or benefit in making an extra mortgage payment monthly ($1,000) or just paying a large payment equivalent to 12 months ($12,000) at the end of the year? These are payments outside of the required payment, I am working the snowball pay down method for one of my mortgages and was wondering which route would be beneficial. Thanks in advance!

Thank you for the information, I think i'll start with the LLC and an operating agreement before we move forward.

Hello BP,

Need advice on structuring a deal. So the back story, I found an 8 unit building in a great area. The previously owners purchased it for 165K and selling for 290K. The previous owners under estimated the rehab and ran out of money the property is completely gutted to the studs and has been sitting for a year. Built in 1884 and located in a historic district, this will be a lot of work, from plumbing to updating electrical to changing the entire floor plan. I’m completely new to flipping and understand the importance and value of partnerships I’d rather be a part of a deal than no deal. I’m more of a buy and hold guy I own 6 rental units (duplex and 4plex). I wanted this 8 unit for my rental portfolio, talking to an experienced flipper (15 Yrs.) he wants to partner with me on the deal. He suggested he fix it up and flip it to me, I purchase it with a bank loan and add it to my rental portfolio. I don’t want to be taken advantage of, don’t know if this benefits me; the property will be worth 600K low end to 800K high end when done. We are about to get it under contract for 250K, they pay closing cost and leave all purchased material in the property(roughly 10K worth). The Flipper suggested 12 months and 200K reno budget (estimate) converting the building into a 4 unit luxury apartment building or condos 1500sqft each. Rents support $1200 to $1600. He suggest the contract in his company name, I put down $5k Ernest money, we use a hard money lender or private money which he can get. I bring 40K to the deal and he brings the lender in his company’s name because he has a reputation with them already.

My question is how would you recommend structuring a 50/50 deal like this?

How can I protect my interest in this deal if everything is in his name, maybe I’m missing something.

How would I profit from the flipping side and cash out while still using it as a rental property?

If I purchase the property from him with a bank loan, how do I get my cut from the flip profit, I don’t want my cut tied up in equity?

Thanks BP any advice would be greatly appreciated!

Has this property sold yet?