All Forum Posts by: Ronald Hayden

We’re just getting started in real estate, and we have an opportunity to invest in projects being done by an experienced pro. This is an exciting possibility as it could allow us to get a return and be involved in bigger projects than we could do on our own, while learning the ropes. 

Is there a good resource (podcast/book) for being a pure investor and how such deals are typically structured? 

In this case the idea is that we’d get a percentage of the profits when the property is sold. For this situation, is the usual expectation that the person receiving the investment guarantees paying back the investment itself no matter what happens, or would the money we invested be at risk if, say, the property sold below costs?

Before getting far into this discussion we just want to get our heads around expectations and risks...

Thanks all — very helpful!

Our accountant mentioned that there could be an impact based on whether it’s evaluated as an investment property?

My business partner and I are evaluating the possibility of purchasing the home that one of us is renting, due to the owner needing cash.

Can anyone provide a pointer/advice on the tax benefits of owner occupancy for a single family home in California? (Especially any potential changes due to recent tax law revisions...)

Here’s one I’m asking as a renter, though it’ll also be good to understand once we have rental properties: My annual lease renewal is coming up, and I’m now required to have $100k of renter’s insurance and to put the landlord on the policy. I have renter’s insurance for significantly less than that because I don’t have $100k of assets in the apt. But I’m really puzzled about having to add the landlord to the policy. What’s the purpose here? How likely are they to balk if I refuse? Is there any law around this (I’m in California)? I love my place but now have to evaluate whether I want to live with this requirement.

@Carolina Solorzano, Jeffrey’s group is the first local group I’ve felt like joining (so I just did!) — thanks for the pointer!

We're in the process of getting our business set up -- we've got the LLC registered and have our EIN, so now it's time to create a bank account. A couple of questions:

Our lawyer recommended we go with a local bank rather than one of the big guys. I think I've heard this on the podcast as well, on the idea that small local banks are more cooperative than big banks. Does this match people's experience?

I asked my credit union about setting up a business account but they only handle personal. They recommended Comerica. Any experience with Comerica, and/or recommendations for other banks?

Thanks for any help you can provide!

Megan S. if you haven't already, you might find it interesting to listen to one of the first BP podcasts (#7) which contains some interesting discussion about being an ethical landlord: https://www.biggerpockets.com/renewsblog/2013/03/07/profitable-ethical-landlord/

We're currently working with Trevor Zink, founder of http://www.omnilawgroup.com/ -- he's helping us get our LLC set up, and has been good to work with.

(If you do contact him, please mention the referral!)

@Megan Phillips my partner and I are in the same situation -- starting out in San Jose, wanting to do things locally while we learn the ropes. But things are so expensive here that it's hard to imagine we won't end up going into other markets eventually, as even significant cash reserves are going to get eaten up before too long.

@Ryan Swan and @Garrick Oconnell -- good point about the electronic lock solutions not being very scalable. Probably more of a solution while rehabbing a SFH or small set of units.