All Forum Posts by: Patrick Wheeler

@Jay Hinrichs I contributed about 40% of the cash and a great deal of sweat equity.

@Chris Masons Thank you for seeing my primary point. They do plan on continuing the partnership once I am out.

One of my roommate's father is a real estate attorney so I was able to have a quick conversation just providing some background information. Again..I don't see the situation escalating, but I would rather at least know my options if need be.

@Cheng Bin Zhang I definitely agree with converting the three oil furnaces to gas and making unit 1 a 3 bedroom. The only thing I would say to keep in mind, which you are already beginning to address, is to make sure you do ultimately get unit 2 up to market rent.

It sounds like this should be a pretty good deal. How did you find it, finance it and what do you expect the cash flow to be?

@Jay Hinrichs So in this situation our "operating agreement" can be an agreement over text? If this is the case, it is what it is. What I'm not okay with is being forced out of the deal without any say. I was always going to be satisfied with my 10% since it was my first deal, but there is now the question of whether I will maintain any ownership at all.

@Uriah D. Definitely appreciate the advice. I'm anticipating ultimately having to at least consult an attorney since this outcome is definitely not of my choosing.

@Charlie MacPherson I've been looking back at some of the documents (since I set most of them up) and like I thought, I don't see anything specifying ownership percentages. In regards to the LLC, the only real documentation is a copy of the entity filing online, which simply describes the three of us as managers. Also, we never put an operating agreement in writing.

I have no intention of making things ugly, but at the very least, I would like a fair buyout offer, which is something I highly doubt I will receive given the direction this is headed. I was employed by one of my partners and when that came to an end, apparently our partnership did as well. I have yet to ask for clarification as to the reason for the buy out.

@Patrick Liska Yeah when it comes to a written out exit plan, that is something I am 100% sure was never established. It'll be interesting to see how this all plays out.

Hey Everyone,

I had a partnership with two others during the acquisition of a couple properties, both of which are still currently being renovated. Leading up to the purchases, we had a verbal agreement of a 45%/45%/10% ownership, mine being the 10%. Upfront, the mistake was obviously not getting this agreement in writing. For our initial purchase, we used a hard money lender so we signed most of the same docs, the only difference I believe was that they provided personal guarantees on the loan.

With the partnership ending, and they wanting to buy out my 10% ownership, do I have a choice in the matter? We made the purchase in an LLC and we are all equal managers of the entity. I know very little about the legal aspect of real estate so any advice would be appreciated. Also, please let me know if any additional information of the situation would be helpful.

Thanks in advance.

Hey Everyone,

I had a partnership with two others during the acquisition of a couple properties, both of which are still currently being renovated. Leading up to the purchases, we had a verbal agreement of a 45%/45%/10% ownership, mine being the 10%. Upfront, the mistake was obviously not getting this agreement in writing. For our initial purchase, we used a hard money lender so we signed most of the same docs, the only difference I believe was that they provided personal guarantees on the loan.

With the partnership ending, and they wanting to buy out my 10% ownership, do I have a choice in the matter? We made the purchase in an LLC and we are all equal managers of the entity. I know very little about the legal aspect of real estate so any advice would be appreciated. Also, please let me know if any additional information of the situation would be helpful.

Thanks in advance.

@Shamus Quirk Definitely will, thanks for the referral!

@Alex Fredette What type of property are you looking at? At 300-500k it sounds like you are including single families, as many multi family properties will be out of that price range unfortunately. You can definitely find a deal in Quincy, especially if you and your wife intend on having roommates. Just allows you to split the expenses with yet another person.

How have you been looking for properties? Definitely take the advice @Account Closed have offered.

Feel free to reach out if you have any other questions. I lived in Quincy for about a year and a half.

@Michael Fratalia No luck with either lender unfortunately. Both mentioned they have done 80% in the past, on rare occasions, but are really trying to stay away from them right now. One explained this was due to inflated housing values right now. Still, definitely appreciate the leads seeing as this was the closest I've found to what we are looking for!

@Matthew Perry Welcome to BP! What is your role with the private equity group and what type of investing are you looking to get into? Feel free to reach out if you ever have any questions or just want to talk real estate.