All Forum Posts by: Account Closed

I'm interested in hearing what was the lowest down payment you've had to put, where was it, and what type of property/investment type was it for? 

I own three houses in CA (2 San Diego and 1 Oxnard). The Oxnard house is currently tenant occupied and the tenant is possibly moving out this summer. This house is under VA Loan at 2.5% interest rate. I also have HELOC under this house.

The strategy that I have been thinking is to sell the oxnard house. I would take at least $160,000 after everything is paid off including the HELOC.

What would I do with the money?

I plan to do 1031 exhange buying 3-4 duplex/fourplex in Cleveland, OH with 5% CoC or better. Plus, It would be free up some of my VA entitlements which would lead to $560K entitlements. Therefore, I can use VA Loan to buy another home in San Diego as well.

What would you do in my situation?

My goal in real estate is: to own RE both cash flow and equity. Owning RE in Cleveland would give me that cash flow, and CA houses would be the equity. Why do I need cash flow now? To cover some expenses like my kids' private school and fund future RE.

JP Eugenio

This is something that should have been discussed initially between us but I'm curious how some other partnerships are structured.   Our agreement is that he is the preferred equity partner and I am the sweat equity partner.  We split all profits 50/50.  We have a 10 unit building that I found and got a great deal on. I hired the management company and kinda run the books to make sure everything is taken care of.   He paid cash for the deal and it generates about $14,000 a month.    Basically how we originally had it planned out was if we go to sell the property, he gets paid back his original investment and then all the profits are split 50/50.   But what happens with all this cashflow in the meantime?  Is it ridiculous to think we could just split this 50/50 in the interim?  How have others structured such deals?   Again definitely should have been discussed earlier specifically but deal happened fast.  

I am looking into a bank foreclosed auction property (Auction.com) in New York. In my research I see that there is an active $68,000 divorce judgment in 2021 against the husband who was foreclosed upon. The husband and wife owned the house together, the foreclosure process started in 2018, and officially was foreclosed upon in 2023. If winning the auction, am I responsible for this $68,000? I suspect no, but cannot seem to find an answer online. I plan to contact a real estate attorney if I determine that I am serious about the property but any insight would be appreciated as I am learning more about liens/title. Thanks.

Also to clarify, I will be getting hard money loan for purchase and rehab and the "lender" (second party) will pay for the hard money and fees so not sure they could have 1st position as hard money lender would have that position on loan. 

Hey everyone any advice or experience would be appreciated. After starting out first flip we had people approach us wanting to give us money for our next flip. We have identified our next flip and want to figure out an agreement with the money investors would that be a JV agreement?

They want to give us the money to pay the hard money lender fees, interest, closing costs, and anything else and we find the deal, do the work, and then after selling it (I am an agent) we will give them interest on their money. 

My question is, what type of agreement should we have in place with them? Does anyone want to share any agreement you go off of? also what is a good return to offer them on their money? I was thinking 15-20%? Thank you guys