All Forum Posts by: Paul J.

I'm in San Francisco, and curious about other markets. Just want to be sure there's a way to manage the introductory experience at this scale. Building a team to cover a 15+ unit property feels like it'd be the most consuming learning curve, and a bit mystifying.

If anyone can offer a few good questions to ask in looking for a MF mentor in this sector, I'd appreciate it very much.

Paul

Hi Dan,

My financial experience is limited, so these are just general thoughts on your situation.

Above all consider the value of your friendship together and make sure that’s the most protected thing in any long term financial agreement you might enter into.  I tend to agree with Michael above, i.e.: think of all the ways you can help her navigate her current situation that don’t involve loaning money first.

I also share Christian's concern. Generating 75k in spare cash in the first six months after a year of medical leave puts a lot of financial pressure on her (which she may not be considering enough). Does that fit with what her career and compensation outlook will be next December...or a year ago? Is she a beloved and highly paid tech exec who will have a ~200k+ salary waiting for her after a year away?

Before she can pay you she will of course need to address:
– HELOC payments
– reconciling HOA dues
– ongoing mortgage payments
– normal monthly living costs (in SF)
– normal insurance expenses (in SF)
– ongoing out-of-pocket medical expenses
– ongoing CC debt payments (which creep up when unemployed)
– beginning her own personal financial recovery and savings needs
– taxes, and a possible bump in accountant fees to navigate a challenging financial year
– one or two typical building expenses which will not thoughtfully wait to occur for your sake or hers (her share of a new roof/walkway/HVAC repair, or replacing a major appliance, etc)

If she can’t pay:
– do you have a slower payback contingency plan?
– do you have a reverse mortgage contingency to slowly acquire more equity in her condo?
– will you team up with her lenders to evict her and claim your share of the equity?
– will you transition into being her landlord someday?

I’m speculating beyond my expertise and the info you've shared here, but these are just the questions that come to mind.

Set her up to succeed. Work backwards from what she can reasonably earn in six months and see how helping her financially then compares with better options for her, your own financial goals, other REI opportunities for your 75k, and any ways you might be more effective as a friend.

Forgive my wordload. Hope some of this helps with your deliberation,

Paul