All Forum Posts by: Ronald Davis

@Angela Holmes First, you should consult an attorney and set-up an Limited Liability Company (LLC) (CA does not have series LLCs but your attorney can help you with other options) use this option to purchase property in the LLC name and not yours. And if your credit is good then you should always first consider using OPM (Other People Money) when buying real estate and only using your personal funds for down payments and closing cost (time value of money: money today is worth more than tomorrow's money - financing is a beautiful thing even gives you limited liability protection when everything's financed verses owning free and clear).

Also, I agree with @Tom Shallcross but only using this option when you find a good deal with multiple bidders and fast close to beat out other competition for the property is more attractive to seller.

If your family are in the real estate business use them as much as possible and build yourself a real estate team to invest in real estate. Again, I suggest getting yourself an attorney to purchase properties in an LLC name and not yours and keep a close watch on everyone you work with in real estate business. Thank your relative for her wisdom of helping you now to build your legacy (remember to pass it forward). Take care and welcome to BP.

The morale of this post by @Jonathan A. is always get your own lawyer or shared attorney to saved costs but attorney would be neutral in the beginning to write and/or review all partnership contracts before signing any thing. Again, never perform a joint venture with other investors without an attorney drafting it according to all parties input, concerns, and how disputes will be settled.

@Michael Perry Okay, again I agree with Ned the pictures for both 3512 and 3514 looks like you will need to do some light Reno/updates in vital areas like the bathrooms and kitchen for increased value of $60K or greater on your ARV appraisals; also, you must consider using the 7 ft basement as living space, and you must consider the new requirements for rentals in Baltimore City. If you are considering $80K for both units then it looks like it is worth it based on your exit strategy. I don't think it's a pipe dream but you will need some Reno to increase these kitchens and bathrooms appeal (find out what's trending in the market for rentals). Take care.

I see no comps nearby even near your seller's asking price (as Ned Carey says not knowing the condition of the properties); I see comps averaging around $20K on the same block and the 3400 block.This mean the seller's asking price is including the value for the tenant voucher and section 8 standards. If you have not already visited the properties on a drive-by and/or a personal inspection then do so (this is a must for city properties). I also would make your final closing depending on both property inspection reports (consider this a good investment expense if go for these higher than normal comps asking prices), consider adding a depending clause on getting a current appraisal value as part of your offering contract, and proof of section 8 passed standards for both properties (this is in my opinion you need because the seller is increasing the values based on these properties being at section 8 standards). Take care.

Welcome to BiggerPockets (BP) @Shannon Davis 

Your last name drew me to your post; the word of advice is "Networking" search your area for Real Estate Investment Associations (REIA), and start building your team for your first investment property by networking at these events. Take care.

I agreed with Ned - drive-by is a must before bidding on any property in large cities to determine the condition of the city block of the property and nearby blocks - looking for boarded-ups and number rentals in the area that will help or break the fix and flip sale value. If you're not from Baltimore or any other city then consider visiting it to do a drive-by or hire or partner with someone from the area you are looking at to do the legwork for you.