All Forum Posts by: Ryan Oldenhage

Nice suggestion @Sam C.!

Hi Jonathan - I would second essentially everything @Matt A. said.  I think it also comes down to the direction you want to go in RE.  There are so many paths to take and ways to invest.  If development is something you think you would enjoy, it would be a great opportunity to start with raw land.  One thing to keep in mind if you go that route, there may be community restrictions on what you can build there (ie. type of home, size, etc.)  I can't speak from experience with development, but I gather it's not the easiest or cheapest way to start out.  There is a bit of speculation involved and if homes are not moving that quickly in that market, you could see some time sitting on the market with hefty holding costs.  That being said, if you think flipping is where you want to go, I think the simplest move would be to sell the land and invest the proceeds into a flip.  

You've made a smart commitment to finish school, and nursing school is no joke. I would focus on completing your program and gaining knowledge through BP and definitely reach out to your uncle. I think simply explaining your interest, that you've been researching REI and asking how he got started should lead to a great conversation. Absorb the questions from the BP podcasts, they are pros at digging into investor's stories.

Finally, Matt is spot with mentioning the hospital networks in the Lehigh Valley.  I grew up here, left for school and found my way back to start a family.  It's a great area.  Welcome to BP and best of luck!

@Jason Small Always.  If you're still in Hellertown, we should grab a cup of coffee.  I'll shoot you a PM with my info.

Sorry to hear of your grandfathers passing, never an easy time.  It sounds like a pretty fair offer and there is the added benefit of keeping it in the family allowing it to be an asset for you.  I guess the importance of that relies on your relationships with your father and siblings.  At the end of the day, they would potentially have to pay for and do the small fixes their realtor recommends (or also pay someone to do them if they don't want to), pay real estate commissions and potentially have the property sit on the market.  We're towards the end of the "buying" season right now, so there is the possibility of the property sitting through the winter which means more utilities and more taxes paid for a property no one is living in.  I would also look up recent comparable sales to see what similar homes have actually sold for.  It's tough to tell if the agent actually looked at comps or just gave a quick opinion.  That can make a big difference.

I would refer to your attorney regarding the situation if your grandmother passing, but I agree with you, I would assume the loan would transfer to her estate.  But again, I'm not an attorney and there are a few variables involved.

Best of luck!

@Rich 

@Rich Vogel, I've used Stephanie for a partnership LLC formation recently, which was admittedly mostly the work of the paralegal (also excellent), but have had a number of clients use the firm in general for commercial lease agreements, contracts, etc. I don't know that they are the cheapest in general, but I definitely feel like there is value for what you're paying (as much as you can for attorney's, right?)

Bob Daday is another good attorney that I haven't used personally in a formal capacity but he has helped me out with residential leases in the past.  He is investor friendly and has rentals of his own.  I'm not sure of fees, but I would contact them directly and ask away.

I would highly recommend Stephanie Koenig at Zator Law, based in Allentown.  The firm specializes in real estate law and the Zator family itself is a class act, although I personally have not been involved in a note transaction To speak of.  Best of luck!

@Wayne Brooks great, thank you for your insight.

Thank you @Wayne Brooks, that makes sense. I guess I was blinded by making a "cash offer" that I wasn't looking at it for what it is. In your opinion, would it be best to go that route...make a financed offer with no financing contingency...as opposed to either incorporating a gift letter from the third party to the LLC OR bringing in the third party as an equity partner in the LLC? Do you think HUD or a bank (acting as the seller) would regard a financed offer with no contingency as strong as a cash offer?

Excellent, thank you @Jesse Gonzalez for the response.  In regards to our structure of the deal...if there is no issue with funds coming from an outside investor, then we will keep the structure as is with a 50/50 split utilizing outside funds.

Hello,

I'm waiting for the paperwork to come back for an LLC which will have 50/50 ownership between my partner and myself. We have funds to cover a down payment of a targeted fix and flip and a relative interested in offering the remainder of our offer in cash.

What is the best way to incorporate the third party funds into our offer? Will a bank owned, HUD or other auction site property accept proof of funds partially in the LLC name and partially from a third party not named in the LLC? Could we do a gift letter to the LLC?

I've also heard of having an investor become an equity partner of the LLC and not sure if that would apply to this situation, how that would be split since we are already at a 50/50 split (45/45/10?) and/or how that would pan out if we have other properties involved in the LLC that the equity partner is not involved in. Any thoughts or recommendations are appreciated.