All Forum Posts by: Leslie Schwab

Thanks @David LaPlante!  I'm going to give it a try tomorrow.

@Sean OToole I am located in St. Louis.  Does Property Radar have coverage for St. Louis City and County, please?

@Chris Seveney I found this post while looking for some note training options.  I am an experienced RE investor looking to build an auxiliary business in notes.  I won't be using Scott for my training after reading the above!!  Who would you recommend for performing and non-performing firsts, please?

Thanks, @Dave Foster!  I would definitely want you on my team to argue this if it ever were questioned!

I thought I was very clever when I set this up this way, but am now wondering if that's the case.

I'm going to bring your idea to my attorney and CPA and if they don't bite, then I'll sell the units separately on market and will pay the resulting taxes.  I think I'll end up in about the same place (with a whole lot more effort) that way.

Thanks again!

Hello BP, I own 4 rental condos in a single member LLC and I'm interested in selling all the properties to an investor and 1031 exchanging the gain into a building I have under contract (to be held in a new LLC where I own 50%).

In order to be able to rent the condos, the investor needs to purchase the LLC itself that holds the properties.

How can I structure this so that I can do a 1031?

@Chase Louderback I guess I read that wrong initially.  So the preferred return would continue to be paid (and we wouldn't get to 50/50 on cash flows) until we cash-out refi?   I'm wondering why he'd ever agree to a cash-out refi if at that time he has other capital sitting on the side-lines...

Thanks everyone!  @Chase Louderback I was thinking along those same lines and am planning to structure it as 50/50.  

I will offer the preferred return on his investment but I have a question.  If, for example, he puts in $200k of equity and is receiving a x% preferred return, does that preferred return stop once he's paid back a total of $200k or is it $200k plus the x% annually that would trigger us going to straight 50/50?

Thanks for your thoughts!

Hello Bigger Pockets!

I have several apartment building investments and am in discussions with a partner who is interested in putting cash into future deals.  He is willing to contribute 100% of the cash for the purchase and any required renovation (with no bank loan).  

I am trying to think creatively about how to structure the net cash flow splits and am liking the idea of a preferred return on his capital contribution and then a percentage split on remaining cash flows and on the net appreciation at sale.  I plan to take a reasonable fee for property management and also a commission when we sell a property.

The most important things to him are a reasonable preferred return and then the appreciation on the asset.  I care the most about the annual cash flow and, secondly, about asset appreciation.  

Can anyone provide advice on how you've structured these cash flow splits in the past?  Is there another creative option that I should think about which maximizes each of our goals?

Thanks very much for your thoughts!

Thanks, John and Brian.  My fear with repairs on 100 year old stacks is that we won't be able to find any solid pipe to tie into and will have a forced whole replacement.

I just saw another fully-occupied building that has 12 older waste stacks and got a knot in my stomach at the thought of having to displace residents to do the updates.  

I am under contract for a 12 family that has older plumbing stacks.  We did our inspections yesterday and all the stacks are bad (cracked to various degrees).  This owner is not willing to lower the price so I will be walking away from the deal.  

Could anyone provide some insight for the future on the approximate cost to replace an apartment building stack (3 story) in its entirety?  How much hassle is it to do this when tenants are in place?

I am tempted to say I'll only consider buildings that have updated stacks, but that will eliminate a lot of good possibilities.  Thanks for any other thoughts or advice that I can take into the next deal.