All Forum Posts by: Philip Cutting

I'm going to gues that she does't have the right. I would have to see the lease.  

Note that I'm not an attorney, but the sale of the asset shouldn't qualify any disregarding of the lease, which is also an asset. 

I've often heard people say hey will move and don't. Sometimes I wish they would :). The point is that a good introduction should cure the problem. 

Also, it might be worth pointing out that just because you buy the house you may not automatically buy the leases as well. I think it's safe to add a clause saying the leases are part of the deal. 

I would call Buddy Marks if you are concerned.  He is a local re attorney. If you don't already have his number, try (614) 258-9300

If you find out that any of this is wrong advice, and it might all be totally wrong, please post a follow up. 

Good luck!

Phil

cool! Good luck with your first deal!  Also consider communicating with First American Title company.  They have been really good and helpful for me. They are over in Gahanna off Morse rd to the left of Buffalo Wild Wings.

And just a plug for BP, there is a download section with a lot of useful stuff. check it out.

Hi guys, A potential private money lender is interested in lending to me but heard that someone has to have at least a 30 day relationship with someone before the state SEC will consider it under the reg D 504 exception. I'm familiar with the multiple touch concept, but not with a time period. And in this case there was no marketing. We found each other threw a REIA. The gentleman isn't an accredited investor, but is close or maybe even a sophisticated investor. He did intrigued himself as a private lender, but is cautious here in Columbus Ohio. And for good reason. Is there anything to this waiting period? I hate waiting, but if it's required, who am I to argue. :) Thanks Phil

John Hyre first and foremost. Contact him at all costs. http://hyrelegal.com/#email-form  Ask about coree. 

Buddy marks. (614) 288-6755

Also a must call. Dana & Pariser, assistant : Kathi T [email protected], Dana & Pariser Co LPA 495 E Mound St Columbus, OH 43215 614-384-2021

These are some serious leads. Treat them with respect or don't mention my name. 

I'll be there. See you guys then :)

I come really late into this conversation and so many people have had really great and detailed comments.  I hope what I have to say isn't spam.

If you want to buy 30 turn key units at one time, then you should hire and or train someone to do it.  If you want to do 30 turn key units over 15 yrs, then hire it out.  You will start with a lower return and potentially make a very high return if you learn and focus.  

If you have a ton of money and need to invest it at once and don't have the time, intent or ability to do it yourself or train a team and your accountant says to spend the money in this fashion, then do it fast.

If you have a year or two to do it and enjoy the game some, then really dig into it yourself.  It's a great skill that will reward you way beyond just real estate.

Basic review of options:

1. Need 30 properties before taxes are due in less than 30 days then buy all turn key

2. Itching to spend some money and want to learn, buy 3 to 5 turn keys and learn to manage yourself.

3. Have a limited amount of money but enough time to spend 1 or 2 years to learn how to retire, do it all yourself.

This is terrible investment advice, but you get the idea.  a Vague question gets a vague answer :) If you want to buy me a beer we could talk in person :).

Talk soon,

Phil

Good luck and Hang in there!! 

Hi Brandon

It sounds like you guys know what you are doing :)

The answer is yes and no :)  A really good one will help, but none will ever solve problems if you run into them.  I think my operating agreements are strong, and to enforce them when I've had problems would land me in court, cost me thousands and still not resolve the way I hopped they would have.  What a good operating agreement does is give you leverage when things go bad.

I have many partnership and have had some great ones and some really bad ones.  I love them.  I've learned a lot from all of my partnerships so I am excited for you.  

If you understand this ahead of time then you see the problem i'm talking about.  If you both had assets and couldn't agree after the fact that they are even or how to divide them, how could you do that planning forward? Those are questions that should be addressed.  What happens if one of you has a financial crisis and cannot support the company if things go bad, say a 20k bill comes up? These are just discussion points.  Not actually reasons not to partner.  

In my opinion one of you will have to be the leader with contractual veto rights or have a person selected ahead of time to work out conflicts, and that should be decided head of time and part of the operating agreement. 

Anyways, I'm cheering for you guys!  I'll be in touch in July and looking forward to seeing everyone and having dinner.

I'll give some unwanted advice. I apologize in advance, but like mr wonderful on shark tank trying to express something very important over my iPhone, this message my not be received with the love that it was intended to.

Do not partner with your coliegue.  There is no point to partner with someone that should just be an accountability partner(don't know that that is, msg me, search it...).  It can cost you a lot of money!  

You both are bringing in a similar amount of money, credit, time, ability, motivation...? Then you both need to buy a deal, and help eachother as friends.  Sure, there is economies of scale, but the return compared to the start up failure rate is not in a positive direction.  If you are confidant in yourself you would be willing to do this. Your future partner should prove himself also. 

Things are different if one of you needs the other due to fraud, criminal proceedings, know that you are not a good business person and will rely greatly on the other to keep the business going... (Just imaging a long list of not so good reasons to do it yourself). 

There is huge benefit for you both to open separate companies (pm me for the contact information of John Hyre and Gina Crosby for really affordable entity formation, a local cpa real estate focused team).

If you guys really want to get in bed together you should try to get ahold of me or even better yet, some of the other much more experienced and intelligent members in Columbus to open your eyes on the real pros and cons of what you plan to do. 

If in one year you both still want to partner, then do it then.  With two new people partnering together it's like having  dumb and dumber (I know you guys are smart, so that's just an expression) partnering  up so that they can burn two years worth of savings on a corperat divorce (not sure if that is faster and cheaper than a real life divorce, ask my friend that is still trying to divide properties after 3 years, many attorneys and many court hearings for code violations...).  

To answer your question on best ref for company formation, it's john and Gina.

Also, one more unwanted advice (#2), you guys sound like you  are waisting a lot of time. If you continue at this speed, you risk never starting at all.  This entire start up process should be fast once you decided that you really want to do real estate. Sure, there are a lot of risk factors, excuses really.  

I hope to see you guys get started right away. If you guys are not in a high income bracket then I suspect your attorney will recomment an LLC and if he is honest, maybe even just to each of you to buy one property in your own name and test it out.

Hope this helps and looking forward to your success!

Phil

Pm with the address. Did you work up a quote?  There are a few lenders in the area, but you may have a hard time with some of the Private money guys because it's been held for so long. 

Sounds like you might have something going for you :)  what is the rehab estimate?