All Forum Posts by: Nicholas LaGatta

I agree, figured so much.  Looking at the Facebook comments, I think most people don't understand this will not apply to them unless they are housed in association with one of those partners.  As far as unintended consequences, I think this could falsely empower folks not to pay their rent, especially those who aren't really financially capable of making catch-up payments, hoping some government entity will bail them out.  Until we understand the full financial implications through the entire value-chain, I hope the city/state/feds are treading lightly until we have the full perspective.  

Original Facebook source:
https://www.facebook.com/keisha.bottoms/

Keisha Lance Bottoms posted this on Facebook, but I'm not clear exactly what it means and what the implications are.  Does this only apply to the "partners" listed in the first paragraph?  Are there broader implications?  What are the unintended consequences here?

Following this.  I'm navigating the same waters now.

For my target property, $50k will cover part of the $65-70k purchase price, but I would have to come out of pocket another $10-15k for repairs, for an ARVe of $105k, then split the equity.  

How much did it cost to set up the LLC and partnership agreement? How much time did it take to set up?

With your partner being 100% compensated in equity with no cash flow, would the closing attorney just pay out the partners based on their partnership agreement or do they pay the LLC and the LLC disburses according to their operating agreement? I assume the accounting is much easier if one party provides all the financing. I mostly want to avoid complicated deal structures and having to have a CPA oversee everything and manage disbursements and things like that.

Hi all,

Having built a successful real estate investing business with my own funds, I'm working on pivoting over to investing other people's money.  I have been on the lending side before and I just did my first debt deal as a borrower.  

I have a higher net-worth individual that believes in what I'm doing that wants to invest, starting with $50,000.  They've got plenty more to invest, but want to start slow and see how the performance is.  Due to the small amount, I offered them a debt-deal with an interest only loan.  However, they came back and said it was really important for them to have an equity stake.  

Based on the deal structures I'm familiar with, moving to an equity partnership is going to require an LLC and partnership agreement, a CPA to oversee the finances and disbursements, additional reporting, and additional communications and stakeholder management on my part. I really don't see it being worth it for such a small amount of funds (considering I am not strapped for cash).

I really want to work with this investor and I see the long term value, but my time is extremely valuable and I don't want to get bogged down in a bunch of paperwork and logistical headache for such a small amount of money.  

What do you guys think?  Is there some easy low-touch way to cut them in on the equity without creating a logistical nightmare?  Is there something I'm missing?  

Thanks!

I'm a newer agent and I speak Spanish decently.  I've considered using my Spanish skills to cater to the Spanish-speaking market niche, particularly investors, renovators, or even retail buyers/sellers.  
Does anyone here have experience with this? Any tips on lead generation or where to find these types of folks? Is there a Spanish-speaking REIA?

@Chad Carrodus. Any thoughts on how an influx of foreign money would impact our local market? Would it be net positive?

@Marc Brenner agree with this. Capital View and Sylvan Hills are still undervalued, IMHO. Pittsburgh is overpriced, although relatively cheap, but your investment will pay off inevitably.

Go for a walk in Pittsburgh and then tell me if you want to live there. There are awesome streets with great people, but also plenty of trap houses and garbage fires.

Personally, I'm a big fan of Pittsburgh and the surrounding areas culturally/architecturally/geographically, but know what your getting into. You're paying a premium for huge growth potential, but you're going to need to put up with a lot meanwhile.

@courtney 

1.  Perhaps a little ATL-centric of me, but by rural Georgia I mean more second and third tier cities.  Anywhere I get the right deal and opportunity would be in scope.

2.  I would prefer to use the fund for the downpayment and leverage the rest.  I can get more equity growth, interest write offs, and invest in more properties to diversify.

3.  Yes, I am in (what I consider to be) a very high tax bracket.  

I appreciate the invite, but right now I'm traveling to New York Mondays to Thursdays, which legitimately makes networking complicated.  I'm still open to connecting with other investors on the weekends.