All Forum Posts by: Sally Primus

I stumbled into a situation that could potentially be very good, but I could use advice.  This isn't my first rental property, but the first I would obtain like a wholesaler myself.  A friend from high school contacted me about how her parent's have a rental in my town.  Their long term tenant moved out and they want to sell because their health is declining.   Their son occasionally helps to try to fix it up but lives out of town and they are significantly social distancing due to Covid.    They also own the vacant lot adjacent to the property.   The neighborhood is probably C+. 

My questions are: how do I approach the conversation that the goal is to help them get out of a stressful situation as well as making a good business decision for myself? What do I do about the extra lot? It is a separate parcel on the assessor's website. It is 72 x 126 feet, and I wonder if I should try to get that as well and maybe build a SFH or duplex on it in the future. Is it worth building in a C+ neighborhood? The nicer houses in the area have sold recently for $110-120k , smaller houses that need fixing up go for like $50k.

Thanks!

I am part of a 4 member LLC. We are looking at buying a duplex for about $65k, rehab $25k(or less) with an ARV of about $120k. I have more cash than the other members, so I want to personally loan the money to the LLC for the purchase and the rehab. Then we will finance asap and then I will be paid back with interest. We will split the profit equally once we finance.

1) is there anything illegal or wrong about this?

2) what would be a reasonable interest rate on the short term loan?

thanks for the help! Other thoughts welcomed as well.

Thanks!

I am one of four partners in a new REI LLC. One is a general contractor who is going to also get his inspector's license. One is a real estate agent. One is a software engineer who can run websites, analyze deals/programs, and also help fund. And then there is me. I am partly there to keep the cash reserves flowing (maybe serve as hard money lender) and I will do the bookkeeping. But I would love to learn additional skill that makes me an asset to the team.

If you could recommend one skill (that you outsource too often) that you wish you knew how to do, what would it be?