All Forum Posts by: Rob Pasche

1. Buy and Hold

2. Comps show 150-160k value but I haven't found a sale for a complete duplex, only found one side at a time.

3. No work required

4. It's tenanted until May on one and February on the other

5. Private lender is my in-law @ 2 points or 9%, whichever is greater depending on seasoning required for refi. Business partner wants 50% of the LLC that will own the property in the end.

Hey guys,

Rather than guess what I should do and have you correct me, let me lay out where I'm at, and where I want to be.

Where I'm at:

I'm personally, in my name, under contract to purchase a $145k duplex

-$25k of my own cash

-$50k from private lender

-$70k from my business partner

Where I want up be:

Refinance 75% of property value

Money pulled out pays lender, myself and my partner

Partner and I each leave 12.5% in the house

Duplex transferred to a LLC (my partner and I each own 50%)

How do I get from Point A to Point B? I'm currently working with a title company and lender that hasn't experienced this situation before.

Thanks!

Rob

Hi Blayne,

Very well thought out plan. While I couldn't comment on the VA loan to purchase a 4plex, your comment about College Station not having any inventory is not true (have not looked at multi-families however). I currently own 3 properties and am looking to add a 4th soon. The most recent listings have a few potential properties that my partner is looking at this weekend. There are a lot of older properties with good locations that would be great long term holds IMO.

Appreciate your insight, @Jeff Greenberg . I will make this clear in the agreements signed and will keep record of digital correspondence as proof of that. Good stuff.

Thanks for the clarity @Jon Holdman . You're right about investors not having the ability to put the money somewhere else for such a short amount of time.

Operating agreement is something I do need to spend more time on. Are their any boilerplate examples available? Or is a real estate lawyer best? I've got a lawyer contact in College Station that I will reach out to. Will post my findings for future readers.

Like the title says, myself and 4 others are combining money to purchase a house and rehab with straight cash. We will all be contributing unequal amounts but since I'm doing all the work, they've agreed I will get a larger percentage of profit than my contribution percentage.

This should be an LLC with written agreements I understand, but how can I have the funds ready to buy a house with cash before knowing what the house is going to cost to purchase and rehab? I guess I'm confused by the order that things occur. Is this the correct course of action?

1. Create LLC

2. Create Bank Account under LLC

3. Everyone transfers their investments into LLC Bank account

4. Find house to flip

5. Make cash offer on house?

I feel like I'd rather wait until I find a house before pooling funds bc it could take a couple months and I'd hate for everyone's money to be sitting there not being utilized.

Thanks guys, I hate red tape and just want to get to the deals!

Rob

Welcome @John Hancock , we are neighbors! I just recently joined BP and can tell you this website is incredible. Do you know what angle you are looking to go in? Give me a shout out if you are in the Plano area.

Also, add a profile pic and set some keyword alerts.

Thanks Alex, I've come across two opportunities where I saw the potential, saw an investor purchase and rehab and turned a good profit/cash flow. The timing wasn't right for me, but I would have jumped all over then had I been prepared. Both were houses in distress (one was foundation, another an empty pool) in Plano and were on the market 3+ months. As long as we get solid inspections, neither of those issues bother me. Every house in Plano will need foundation work. It's only a matter of time. Having foundation work done with a lifetime transferable warranty is an asset when selling a home in these parts.

Rob

How long have you held the properties? Have you built up extra equity on top of the down payments? Don't sell yourself short.

You need to also calulate the risk you took to purchase these properties in the first place without knowing you would get tenants at your price. Your buyer should pay a premium for not having to face the risk that you did.

Hi BP,

My name is Rob. I'm in my late 20's and looking to make my first deal in the next 2-3 months in the North Dallas area. I am focusing on flipping opportunities or rehab->rent opportunities.

I currently co-own 3 rental properties in College Station, TX and have been passively involved since 2011. But, I am looking to take an active role in real estate investing near where I live.

This website is great. I've read a couple books and have begun to make a gameplan, but I tend to get stuck on the details without taking action. That's my biggest weakness. I think if I surround myself with a community of action takers, it will help. Appreciate your time.

Rob