All Forum Posts by: Sean Mcmahon

Hi BP community!

A friend and I are looking to do BRRRR's together -- he'll do the rehab and I'll provide the capital for cash deals. Our plan is to setup a joint ownership LLC to acquire the property. Once its rehabbed and rented, we'd transfer the property to an sole ownership LLC, owned by one of us (we'd switch off who got the property rather than owning all of them 50/50) for the refinance. The party who didn't get the property would receive some payout -- him for his labor, me for loaning my money.

(In case folks are wondering, we'd utilize a joint-LLC rather than a single-LLC as there are lower licensing requirements in VA if the GC owns the property).

Here's my question -- Any advice on how I would protect my capital? I was thinking about formally loaning the money to the LLC, but I don't know if that protects me.

I trust my friend, but I'm hesitant on transferring my money to an LLC in which he controls 50% -- in other words, if things went south, there goes half my money...
Has anyone done a similar arrangement? Any recommendations on a good CPA or attorney to consult on the setup?

Hey BP!

Any DC area investors have experience in the Hillcrest area?

I'm looking at a partial house-hack. Its a SFR with a mother-in-law/"English basement". The basement has a private entrance, two bedrooms, full bath, living room, a off-street parking space, and W/D. About 1K SQ in total. I'd install a kitchenette. Biggest downsides are low ceilings, that it's a basement (fine light for a basement), and no outdoor space.

Anyone have thoughts on renting a basement suite in Hillcrest DC? Or is to far out there and to far from public transport (15 minute walk to metro).

There’s certainly rentals in the area but I haven’t sent any basement apartments.

Sean

Has any investors in the DMV area successfully petitioned the city of Takoma Park for a fair market rent increase?

I know Montgomery County, MD and Takoma Park especially, is NOT landlord friendly. Curious if anyone has had success here?

There’s a small multi-family property I’m considering that is vacant and with some upgrades, could rent at considerable higher rates than it has previously.

Hi BP community, 

For those that purchase properties on septic, do you have any concerns that your tenants (especially C-class tenants) will flush non-flushable items down the toilet? How do you mitigate against that risk? 

Thanks for the insight! 

Sean 

@Sean Mcmahon Also, what do you mean when you said you found the wholesale deal on BP? Did you connect with a wholesaler you met through BP or find this on the BP marketplace?

@Douglas Harris great work and congrats! I live in Arlington and didn’t even know it was possible to find something like this in the city. Well done!

@Zach Hoereth super cool Zach! That’s quite the inspiration!

 Elliot, how did you identify that market? What were some key indicators to you? You obviously went against the grain and were rewarded for that! 

Your last point sounds like Buffet's advice: be greedy when others are fearful and fearful when others are greedy. And it clearly paid off for you! 

 What did you look for in this city that demonstrated it would make a good investment? 

Wow! @Nathan Gesner and @Steve Rozenberg this is both incredible advice. Thanks for the level of detail and steps to thing through! I'll start my search with NARPM.

Thanks again!