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All Forum Posts by: Scott Loopstra

Scott Loopstra has started 3 posts and replied 5 times.

Post: Title Insurance and Prop 13

Scott LoopstraPosted
  • Real Estate Professional
  • Santa Rosa, CA
  • Posts 5
  • Votes 0

Hello, Smart Folks. 

I have been 1/4 owner of a property and am now buying out the other three owners, all siblings. We inherited the house in 2015 as a result of death of our parents. Is there any reason whatsoever to buy title insurance? Doesn't make sense to me since with know the title since 1958. But just want to make sure. Along similar lines, do any Californians know how to keep the property under the auspices of Prop 13 and maintain favorable property tax status? Thanks in advance. 

Post: Distressed Property as a Seller

Scott LoopstraPosted
  • Real Estate Professional
  • Santa Rosa, CA
  • Posts 5
  • Votes 0

The prior owner was a family member who passed away. Someone told me that when an owner dies, the new owners do not have to disclose anything due to the death, so no, was not planning to disclose. We know our market is limited to investors with cash, and were looking to price to get enough bidders involved to get the best price. Thanks for your input!

Post: Distressed Property as a Seller

Scott LoopstraPosted
  • Real Estate Professional
  • Santa Rosa, CA
  • Posts 5
  • Votes 0

Hello, Community. Looking for input on pricing of a house that needs major work. Comps in the neighborhood are in the mid-$650's. Don't want to get an estimate for repairs so as to avoid any need to disclose, but may need foundation work on a slope in California. Need to get the max out of the deal, so want to price accordingly. I do not have a relationship with any contractors able to rehab this project. Family has no interest in taking on the project. Already started discussion with Realtor. Thanks for your input.  

Post: Partnership Structure and Financial Justification

Scott LoopstraPosted
  • Real Estate Professional
  • Santa Rosa, CA
  • Posts 5
  • Votes 0

Thanks, @Brian Schmelzlen. How would one put the capitalization detail into the operating agreement? OK to PM me. 

Post: Partnership Structure and Financial Justification

Scott LoopstraPosted
  • Real Estate Professional
  • Santa Rosa, CA
  • Posts 5
  • Votes 0

Hello, Big Pocketers. I am a newbie; no deals yet, but learning. I greatly appreciate your collective information. 

My question pertains to a hypothetical partnership and financial justification for both sides. Managing partner does all the work (finding, rehabbing, managing) on a $100K property for 30% ownership, and an passive investor provides all the capital for 70% ownership. Partnership is buying at wholesale provided by the managing partner. Retail value is $110K.

Upon initiating the partnership and purchase of the property, does the value to the managing partner hit $33K (30% of $110K) and the value to the capital partner drop to $77K, or is there a better way of structuring the capital contribution?

Partnership divides the profits 30/70. Rent is $2200/mo,net profit 50%. Managing partner nets $3,960/Yr, Investor nets $9,240. 

How does one do the financial justification on behalf of the investor? Pre-appreciation equity to investor is $77K. Annual income is $9,240, so it appears that it takes two years to recoup initial investment. Is this normal, or is there a better way to structure a deal like this? 

Any information is helpful. Thanks!