All Forum Posts by: Percy N.

It is not a good feeling when the lender tries to switch terms a week or so before closing and you have over $1mm hard on the deal. Have to scramble to replace the lender (we have backups but it takes 4-6 weeks min for loans over $20mm).

The most beneficial check is a good past rental reference (and not from a relative or friend).

If you want to (try to) "catch" who it is then I would place cellular cameras in and around the property. These cameras upload to the cloud as it is recording, so even if someone destroys the camera, the video is safe in the cloud. Of-course this assumes you can identify (and prosecute) the offender.

Reolink and Simplisafe (security system) are 2 brands that make these type of cameras.

@Chad Clark since this was a tax sale, was there a mortgage on the property and if so, was it wiped out?

@Wendy Busa perhaps the most important data point would be to see what experience this person has and what their reputation has been in the REIA.

Then of-course verify with the traditional data sources and do the deal where you are comfortable and can legally step in if the deal went south.

Good point @Dave Van Horn.

My wife and I plan to leave most of our "estate" to charity.

Real estate is a way to ensure that the maximum benefit can be achieved (tax benefits on appreciation, hedge against inflation, leverage, etc).

As suggested, you can use debt or form an LLC where all members are active.

If you bring in passive investors, you will need to talk to a securities attorney who can help you draft a PPM.

Getting the purchase funding is just the start. What is the plan to fix and flip (or rent) the properties?

Depends - are you trying to contact MF with less than 20-40 units or over 100?

We get letters from people thinking they are buying a 10 unit $2mm property when the property is worth $50mm. Most large apartment owners won't waste time with these type of "offers".

You have some luck with a small Mom & Pop owner but I would say try to hone in your target property criteria as much as possible.

Depends - what % of the total net worth does that $10mm represent? What are your objectives for that capital? Risk tolerance, Liquidity requirement, etc?

I was talking to a $1Billion Family Office yesterday looking to invest $200-$300mm so their criteria may be very different than a typical HNW individual who may need cashflow from their investment.

Cheers
Percy

Outside of the reasons mentioned above, I sometimes hear from people who invest via SDIRA as "pref" equity or debt to avoid UBIT/UDFI. You should check with your tax professional to confirm, if this applies to you.