All Forum Posts by: Nico Roe

Hi Everyone,

I am getting astronomical cash on cash return rates and they can't be right. If I am utilizing a LOC against an investment portfolio @ 4.25% Interest with no term, and financing the entire deal, would my Cash on Cash be determined by dividing my annual revenue by what I paid annually to carry that LOC debt?

How do you determine cash on cash if you finance the entire deal?

Am I crazy, my only out of pocket expense is what it costs me to maintain that debt?

Thanks for the help!

@DavidGreene is the man!

Hello Everyone! Looking for some wisdom on partnerships. Specifically: I am interested in partnering with a GC. I would bring the lion's share of the capital, he would provide all renovations and waive his fee. His capital contribution would be in the form of his labor/expertise. 

My question is how does this partnership translate into distribution of revenue? Also, should we form an LLC? Or is there another vehicle that would better suit our goals (Strictly BRRR). His expenses would need to reflect my capital contributions for this to be a 50/50 split. Thoughts??

Follow on question: what if you were to partner with a general contractor? How would one way his inputs in the form of renovations/waived fee's in bringing the property to market? Lets just say:

100k property

Me: 20k Down payment

Him: 10k in Renovations/Expenses

Would that be a 66/33 split?

Hey Team- I bailed on the contract. Looking to use my money to buy more units in a lower income area. Thanks for the wisdom and the help!!!!!

What about resale value down the road? If I can play the long game here wouldn't that be worth considering?

I know! I've been hanging out on the lower end as far as inputs... I assume being conservative is better. I am trying to figure out what the guy who got 4500 had going for him.

Again... some of the numbers required guestimation- I am using the average of my rental income comps for instance.