All Forum Posts by: Nathan Frey

Hi,

I'm investing as a capital partner in a fix & flip deal in the Atlanta area and am looking for a experienced attorney to help review a promissory note and JV agreement. I'd appreciate any recommendations!

Thanks.

Hi,

I'm investing as a capital partner in a fix & flip deal in the Atlanta area and am looking for a experienced attorney to help review a promissory note and JV agreement. I'd appreciate any recommendations!

Thanks.

@Mark Munson - great to know, it'd likely be a "fix & flip" loan so I need to run that down. If a 2nd lien isn't an option, what would you suggest to protect my ownership rights outside of a standard JV operating agreement that lists my personal name and his LLC as the two partners?

His LLC is an investment company LLC he set up years ago - I likely won't be added to that, so I imagine we'd need to create a JV LLC together? I still want to stay off the loan, though.

Rob - super helpful, thanks! Could the JV Operating Agreement act as the "Resolution"? The draft agreement I've reviewed does itemize responsibilities for each. It does give my partner decision-making authority in the event we disagree on something (i.e. sale price), but he understood my concern and said we could add a "minimum sale price" - this concern goes away if I can add a "minimum profit" per your comment.

I like the second lien idea, if possible - my partner actually brought that up because I wanted to make sure I protect my ownership rights.  

@Mark Munson - currently I'm just listed as partner in on the OA. Basically there's Partner #1 (me) and Partner #2 (his LLC). Appreciate your perspective regarding being the lender instead - with it being my (and ours as partners) first deal, I am leaning the same direction.

I'm am about to partner with someone in the Atlanta on a fix & flip property in the Canton area. I have a draft JV agreement, but the general structure is I would provide the capital (up to a max amount), he'd cover the rest, his name would be on the loan / title, and I would be a partner in the JV / operating agreement. General split is TBD but likely 50/50 or so.

I'd love feedback regarding how to guard against a deal that goes bad / how to write that into the agreement.  Another option for structure is I may just loan $X and ask for a flat percentage fee on  the loan - I'd likely make less money on the deal, but avoid downside.
 

I have a background in commercial construction & development, so when thinking about renovations or repairs, my mind often shifts to negotiating contracts with general contractors and vendors.  However, I know it's different in the residential world.

Is there a good rule of thumb as far as how formal or detailed to get with a contract when working with a handyman, general contractor, tradesman, etc.?  Of course I know the more tricky, large ($ and scope) and risky the project is the more important this gets, but really just looking for general guidance from those that have executed both large and small scale renovation or rehab jobs on single family up to perhaps quadplex properties.

Also, would you recommend working with an attorney upfront to create a "boilerplate" contract you can use with all contractors (assuming they all agree to the same terms)?  I know it's an upfront cost / investment doing this.  If there's a source for contracts that is recommended (by state), that would be very helpful as well.

Try searching for Forest Park zoning - sometimes zoning is regulated by the city, not the county.  I've copied a couple links here for you.

https://www.forestparkpbz.com/zoning

https://0eb0a62d-a6d2-4c45-8867-b7173e84a599.filesusr.com/ugd/5ebaa5_0153b9a6097e4b5d9b381a88e3b03576.pd

https://library.municode.com/ga/forest_park/codes/code_of_ordinances?nodeId=COOR_TIT8PLDE_CH8ZO#TOPTITLE

I’m interested in investing in private note funds, and am wondering if there any out there that do not require you to be an accredited investor.

I live in Atlanta and have around $50-100k to begin investing in real estate - something I'd like to do within the next 6-12 months. I own a single family home with my wife with ~$250k left on the mortgage. I've read and listened to some podcasts about the idea of paycheck parking via taking out a HELOC in order to save on lifetime interest payments and own a home outright 4-5x faster.

I love the idea of financial freedom and not having a mortgage payment sooner rather than later, but at the same time wonder if the additional $ paid down via paycheck parking could be utilized in a more fruitful way.  We both work, are able to save, and have a healthy emergency fund, 401(k), ROTH, and individual investment account separate from the $50-100k I'm talking about investing in real estate.

I appreciate any and all feedback and would enjoy discussing with someone willing.  I'd also enjoy networking with anyone with real estate investing goals in the Atlanta or Southeastern region.