All Forum Posts by: Ryan Franklin

@Joe Hughis - Wow...that's a really good point! I will definitely try to target an end of month closing! These are the types of things you can only learn through experience (or experienced BPers!).

@Scott S. - Thanks for the congrats! 

@Michael Le - Whoa - thats a definite 'gotcha'! Is this true everywhere? 

In NC, I am required to have a RE lawyer to close. Since Michael stated that I'll have to pay approx. 1% to a buyer's agent (as opposed to a commission split between the buyer/seller agents) is there really benefit to also having a buyer agent?

@Joe Hughis - Thanks for the response! I will most certainly get a commercial agent in the morning...I just wasn't certain this was the point to bring in the agent. You mention it would be an extra cost. Am I incorrect in assuming the agents cost is paid by his commission in the deal? I didn't expect that representation to cost me anything (unless you're simply referring to the "lost" 3% commission I would make by representing myself). 

Hello fellow BPers! So I just successfully negotiated a purchase price on my first deal! I gave it a pretty slim shot on getting this deal, but I woke up this morning to an email from the seller's agent agreeing to my terms! I can't even begin to explain the flurry of emotions that bubbled up - a mixture of 'OMG I CANT BELIEVE IT' excitement quickly followed by a 'HOLY CRAP WHAT DO I NOW?!' freak out episode! It's a relatively small deal on a 14-unit that I'm doing on my own (not syndicating) - but I wanted to get some experience under my belt so it will give me some credibility when moving on to do larger syndicated deals. Anyway, the seller's agent just sent me over a draft purchase agreement and requested me to provide him with any changes...but the problem is, I have no idea what I'm looking at! Everything looks good to me, as most of the information is in-line with what I put in my LOI...but I was hoping one of you experts out there could take a look and let me know if there is anything I should change.

Also, I'm sure someone out there has a checklist of everything I need to do leading up to closing - I would really appreciate the help figuring out what to do now!

Hey BPers!

Need some quick help here! I need to know what to do now that my wholesaler got a house under contract and is looking to assign it to me. I'm excited - and know all the steps I need to take as far as running the numbers, inspections, etc...but what I don't know is how the actual transaction works! How do I actually purchase the contract and property?!

Excellent, thanks @Gino Barbaro! I will definitely check them out. 

P.S. You have about the most NY name I've ever heard. 

@Amy Wan...Hi! Thanks for you response! Could you delve a little into how you've noticed first time syndicators are failing when they have no help? Is it primarily a matter of not finding funding - or are there other reasons?

It was actually just suggested to me by my SEC attorney that I also retain a local RE attorney...so good advice there =]

@Bryan Hancock & @Bruce Petersen, thank you! I definitely understand the value and importance of marketing - impossible to do a deal without money! I just found out that I actually HAVE to use a local RE closing attorney in NC, so unfortunately, there will be more cost there (since my awesome new SEC attorney, a regular on BP :), is in beautiful St. Augustine, FL) - but hopefully, when I move back down to Tampa, they will be able to handle everything.

Would you mind detailing a bit what each team member specifically does? For example, I now understand the purpose of my SEC attorney and what they do for me, but I wasn't aware (until discussing with one today) what it is that a local RE closing attorney does and why I need one. I'm looking for something like:

SEC Attorney: Handles everything dealing with compliance, drawing up all the contracts, LLC, subscription agreement, PPM, and all other various disclosures, etc.

RE closing attorney: Prepares closing docs, does title search - need them when actually closing the deal (that's all I know - feel free to expand!)

CPA: Do I need one? What specifically do they do? At what points during the process do I need them?

Tax accountant: Do I need one separate from CPA? At what point should I retain one? What would they do specifically?

xxx:

yyy: 

etc:

In putting together your syndication team, what are the roles you feel are the most important in creating a highly successful syndicate and what are their individual responsibilities? Here are a few team members I'm expecting to be important. What is the purpose of each and what roles am I missing (other than investors and a mentor)?

SEC Lawyer:

Local Commercial Real Estate lawyer:

Commercial RE Broker:

Property Manager/Mgmt Company:

CPA:

@Bryan Hancock, as usual, you're coming to the table dropping some serious knowledge =] I truly appreciate all the assistance you've provided me thus far (and for free, I might add).

One question, what constitutes "advertising." Where am I crossing the line between simply providing information about the deal and actually advertising/soliciting investment? The reason I ask is I have sent an "info packet" to many of my friends, and they have then sent this on to other people that I might not have a previous relationship with.

I'm nearly to the point where I feel obligated to hire you ;-) Do you accept out of state customers?!

@Bryan Hancock, I will most definitely not take any money until I have a proper PPM in place. Is there another/additional disclosure documentation required?

@David Thompson, thank you for the info! I am meeting with an attorney that specializes in syndicated real estate deals tomorrow, so your information is helping me to ask more informed questions.