All Forum Posts by: Ryan Freet

Is the 12% fee in addition the existing fee charged on the prime contract? Also, how big is the project and what type of contract is it (GMP, Cost+, etc.)? It is fairly standard with the contracts I have seen/been a part of for the agreed upon fee to be applied to each change order, but I have not done anything with an additional fee above and beyond that. All of the contracts I have dealt with have been larger mixed use buildings so I can't speak to how appropriate the fee is. The most I've seen is 9% with most falling between at 3-6% and the GC having other agreed upon profit centers built in.

Ahh, that makes sense. If you are looking at a long position in these funds then I would say putting more money in makes sense over the next month. However given the upcoming presidential election and all of the uncertainty I believe there will be substantial volatility through that period. I divested a great deal of my holdings over the past year with the intent of putting them back into the market sometime in 2021.

I've always subscribed to the notion that it is not wise to try and time the market. For the same reason RE investors preach the difference between a $30k property and a property which is selling for $30k stocks should be treated the same way. If you believe a company is strong enough to invest in, purchase shares at predetermined intervals over the next 2 or so months. Controversially a dip in the market and the increase in perceived "value" doesn't suddenly make a bad company good.

I feel to compare these to someone would need to ask how soon an investor is looking to generate returns? I love syndication, the idea of several investors being able to generate stake in a much larger project they may otherwise be able to on their own is appealing. I believe syndication can be a great way to get in on a new build, say for instance a mixed use property with first floor commercial space. A good sponsor with experience in each facet of the project life cycle can create strong returns albeit in my example of a new build they would be on a more intermediate term. 

I believe seller financing is for buyers as it gives them more financial flexibility depending upon the term. As has been stated on these forums regularly, the seller also benefits greatly given the consistent return of the note and at a much higher rate than one would receive from a bank and with less volatility than would be experienced in the stock market.

In my uneducated opinion syndication offers higher potential for return whereas seller financing offers more financial flexibility.

The verbiage I've encountered in regard to drywall holes is "anything smaller than your pinky nail" is fine. Anything larger must be patched and filled with sanding and painting to be performed by the landlord after move out. Scuffs weren't damage but any vents, windows, or blinds would be billed back. This is always spelled out in the lease.

Not sure what others have experienced but what I have seen to be effective and commonplace in my area. 

It depends on what you consider large scale, but there are properties available. The RE Agents on this forum are extremely knowledgeable so would be able to speak to the actual numbers. As far as building new in downtown Columbus, there is no shortage of work or projects. With that in mind most of your contractors capable of handling the larger projects, that is to say completing them on time and in line with your budget, are going to cost a premium. What size projects did you have in mind?

We've only ever utilized unique bank accounts for separate partnerships (or other legal entity), or if a separate account is required for deposits payable. In this example if we had 20 properties owned by 6 separate partnerships, we would have 6 separate bank accounts plus an required accounts for holding deposits payable. Your accounting software and a solid budget should take care of the bookkeeping and planning associated with having multiple properties utilizing the same bank account.

A subject to deal would be you taking rights to the property but leaving the existing mortgage in place, or taking it "subject to" the existing mortgage. I'm definitely not an expert on the subject but I don't believe you would be able to obtain seller financing in a subject to deal. Using your numbers, I believe it would work more along the lines of the seller having a $50k mortgage on the property, you pay them $5k to "sweeten" the deal at which point they transfer title to you. You would then pay on the mortgage while it remains in their name. There are other points which are more thoroughly explained elsewhere on the forums but I believe this is the gist of it.

My experience to this point as been with homeowners which are several months behind on their mortgage and rather than paying the entire $5k to them, the deal would have required paying 6-8 months of their mortgage and bringing it current.

@Evan Polaski In my mind the Private money would be simple interest loans (paid bi-annually or at the close of the loan, whichever is shorter) used more like gap funding to get me through some rehab or a other improvement. I would pay them off after 6-12 months and ideally secure some form of longer term financing. Talking through it, the deal is obviously the most important part as the equity would protect both me and the lenders.

I am looking to put together a house hack for my first deal and am trying to figure out the most effective use of my available options with the goal of using as little of my own money up front as possible.  I am unsure of the best way to integrate all or some of these options most effectively. I am fairly handy and plan to find something I can put some work into as well.

Through networking and personal contacts I have private money available to me once I find a deal (>$100k). The money is from multiple people who have said they are interested in investing once I get going.

I have great credit and my current debt service payments are ~9% of my gross monthly income.

I've completed college within the past 3 years and never purchased a house or property before so I am unsure what that would qualify me for in terms of other aid.