All Forum Posts by: Nicholas Hindes

@Benjamin Spandau I’m looking to ask some questions about a joint venture and setting up an operating agreement. Can we connect sometime over the phone?

@Jason Duhn I’m looking to ask some questions about a joint venture and setting up an operating agreement. Can we connect sometime?

To clarify. Even after splitting net operating income down the middle we would still bring in 5000 annually each.

So I’m new to investing and I have been learning a lot. I thought of an investment strategy the other day that I wanted to get some feedback on.

My wife and I hear live in a market where we can get a multifamily deal for less than 100,000. We are excited and saving for a down payment for our first investment. Something occurred to me yesterday though regarding partnering up that would enable us to jump on our first deal faster. We know a lot of people who are interested in buying their first home or don't want worry about a mortgage etc. I'm wondering if we can partner with them and have them get a mortgage with an FHA loan only having to put 3 1/2% down. We would gift them the money or split the cost of the down payment with them. They would live in the residence and my wife and I would manage the property etc. Essentially we would do a house hack partnership that wouldn't require my wife and I to move. My wife and I would be on the title with the partner but just our partner would be on the mortgage. Of course we would establish and talk through an operating agreement with an attorney etc. When I run the numbers in our market both parties would make their money back within the first year.l with amazing returns. Am I missing something here regarding this partnership idea? It almost sounds too good to be true and too easy of a way to make money. Essentially my wife and I would bring capital and knowledge to the table and find the deal while our partner would bring the FHA mortgage and the living in the residence requirement. Am I missing something here?

@Gabe Sasser thanks gabe that’s awesome and really good to know!

@Brian Nalley you could partner up with a friend or family member who has capital but no time or knowledge or RE.

@Brian Nalley have you looked into seller financing? If the home is owned outright by the current owner that could work?

Or could you tap into a heloc on the mortgage you are gonna close on now depending on how much you put down on your primary residence.

Hey everyone. I am new to RE investing but SO excited to jump in with our first rental. Could use some feedback regarding what next steps to take. Right now we are about 4 months out from finishing some student loan payments. Then we’ll have an extra 1300 a month in cash flow to save and invest. We have about 10k in the bank right now as an emergency fund. The RE bug has bitten me pretty hard and I’ve been tempted to try and look for a way to make a local deal happen. It’s keeping me up at night honestly because I’m so excited. But that would require us to really dip into the 10k we have just as an emergency fund. I need some seasoned investor advice to help me navigate the excitement of our new venture. I’m thinking it would NOT be wise/even possible of us to somehow go into our first deal with very little backup cash if something went wrong right? Like if somehow we could manage this deal we’d have like less than 1000 in the bank at closing but the multi family which is already full with two of three tenants would be netting over 1000 a month and then on top of that with our w-2 jobs we can save another 1300 a month. So on closing we go down to almost zero but by the end of month 1 we have over 2k. Perhaps I’m just an optimist too much and am not thinking about things that could go wrong but I’m sure things could go wrong with the first property and this would NOT be wise. Does all this make sense?

Here’s the plan which I think is wiser but I don’t like as much because it requires patience.

Keep sitting on 10k reserve

Pay off final 6000 in student loans by august (this btw has zero interest rate until 9/30/21)

Starting in September 21 Save 1300 a month for first investment for 15 months.

Buy first multifamily property by the end of 2022 with about 20,000 to drop on the first down payment and closing costs and then 10k in reserve and extra monthly cash flow NOT from the property of 1300.

What do you guys think it best?

Option 1 sounds exciting and ambitious but slightly impossible and risky and emotional. But option 2 sounds wiser but much more responsible but also man I want to move faster.

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Hey everyone. I am new to RE investing but SO excited to jump in with our first rental. Could use some feedback regarding what next steps to take. Right now we are about 4 months out from finishing some student loan payments. Then we’ll have an extra 1300 a month in cash flow to save and invest. We have about 10k in the bank right now as an emergency fund. The RE bug has bitten me pretty hard and I’ve been tempted to try and look for a way to make a local deal happen. It’s keeping me up at night honestly because I’m so excited. But that would require us to really dip into the 10k we have just as an emergency fund. I need some seasoned investor advice to help me navigate the excitement of our new venture. I’m thinking it would NOT be wise/even possible of us to somehow go into our first deal with very little backup cash if something went wrong right? Like if somehow we could manage this deal we’d have like less than 1000 in the bank at closing but the multi family which is already full with two of three tenants would be netting over 1000 a month and then on top of that with our w-2 jobs we can save another 1300 a month. So on closing we go down to almost zero but by the end of month 1 we have over 2k. Perhaps I’m just an optimist too much and am not thinking about things that could go wrong but I’m sure things could go wrong with the first property and this would NOT be wise. Does all this make sense?

Here’s the plan which I think is wiser but I don’t like as much because it requires patience.

Keep sitting on 10k reserve

Pay off final 6000 in student loans by august (this btw has zero interest rate until 9/30/21)

Starting in September 21 Save 1300 a month for first investment for 15 months.

Buy first multifamily property by the end of 2022 with about 20,000 to drop on the first down payment and closing costs and then 10k in reserve and extra monthly cash flow NOT from the property of 1300.

What do you guys think it best?

Option 1 sounds exciting and ambitious but slightly impossible and risky and emotional. But option 2 sounds wiser but much more responsible but also man I want to move faster.

Hey everyone. I am new to RE investing but SO excited to jump in with our first rental. Could use some feedback regarding what next steps to take. Right now we are about 4 months out from finishing some student loan payments. Then we’ll have an extra 1300 a month in cash flow to save and invest. We have about 10k in the bank right now as an emergency fund. The RE bug has bitten me pretty hard and I’ve been tempted to try and look for a way to make a local deal happen. It’s keeping me up at night honestly because I’m so excited. But that would require us to really dip into the 10k we have just as an emergency fund. I need some seasoned investor advice to help me navigate the excitement of our new venture. I’m thinking it would NOT be wise/even possible of us to somehow go into our first deal with very little backup cash if something went wrong right? Like if somehow we could manage this deal we’d have like less than 1000 in the bank at closing but the multi family which is already full with two of three tenants would be netting over 1000 a month and then on top of that with our w-2 jobs we can save another 1300 a month. So on closing we go down to almost zero but by the end of month 1 we have over 2k. Perhaps I’m just an optimist too much and am not thinking about things that could go wrong but I’m sure things could go wrong with the first property and this would NOT be wise. Does all this make sense?

Here’s the plan which I think is wiser but I don’t like as much because it requires patience.

Keep sitting on 10k reserve

Pay off final 6000 in student loans by august (this btw has zero interest rate until 9/30/21)

Starting in September 21 Save 1300 a month for first investment for 15 months.

Buy first multifamily property by the end of 2022 with about 20,000 to drop on the first down payment and closing costs and then 10k in reserve and extra monthly cash flow NOT from the property of 1300.

What do you guys think it best?

Option 1 sounds exciting and ambitious but slightly impossible and risky and emotional. But option 2 sounds wiser but much more responsible but also man I want to move faster.

Thanks guys that super helpful info to think about it. Got in touch and got some more information. Looks like the seller is not even open to anything low at all. They have had a couple offers from others with my similar line of thinking and rejected them. Turns out everything is vacant now too. @Gabe Sasser where did you hear about not investing in Multifamily units in Indy? What was the reasoning behind that? Very nice to meet you @Darren Haworth and @Landon Bleau