All Forum Posts by: Sean Robinson

Hello - I'm looking for information around how real-estate investors typically structure their deals when it comes to raising outside capital to cover the down payment portion in transactions. I understand there's a lot of nuance and variability around how deals get structured, however if you've had experience with this I'd love to get a sense of the terms you set with your investors. Some components I'm trying to understand:

Do you typically set a specified return you try to meet? (i.e IRR %)

    Do you structure your deals where you have to pay back the initial principal before taking profits yourself or do you take profits immediately? (After any rehabbing work if needed to be done)

    After returning the investor's initial investment, does the investor continue to receive a % of the proceeds (if cash flowing) indefinitely or only until a specified amount is achieved (similar to question 1)

Again, understand each deal is different and there's no standardized format. Just trying to gauge how others typically like to structure their deals and the types of terms they set with investors. 

Feel free to DM if you have had experience. Happy to hop on a phone call to hear your experience to get a better understanding of how/what I should be thinking about.

Thanks!

Just moved to  Marin County in April. Been also trying to connect with likeminded people as well. Also down to connect. 

@Andrew Garcia, got it. That's what I suspected but was curious if there was typically a standardized format that goes into determining the splits, etc. Totally makes sence it varies from deal to deal. 

Thanks alot!

Hello - Up to now, I've been using my own savings to cover the down payment on mortgages for real-estate. I've been trying to educate my self on raising outside equity to cover a portion, if not all, of the down payment. The part I'm struggling to find information on is how the structure of such a deal would work, mainly around when it comes to returning the equity back plus any additional upside.  I've listed below some specific questions that I'm trying to understand:

          How do you split the monthly cashflows after initial closure to begin repaying equity amount? After mortgage payment, expenses, etc. should all cash flow be used to repay investor? If a portion, how do you decide on what %?

         Upon paying back the full equity amount, what percentage of future cashflows, if any, goes to investors? 

         How does ownership of the property work when raising equity to cover the down payment?

Any information on examples on structuring deals would probably be most helpful as I'm sure all this varies by deal. 

Thanks in advance for your advice! 

Hello - I'm looking for a property manager for a duplex I'm looking to close on later this month. I've been doing some research online to find property managers, but figured this form would also be a great place to ask around. If you know of and have any property managers that you could refer me to, that would be extremely helpful!

@Jay Mersfelder

Thanks for the insightful information! Yeah, most of what I've been able to find, if not on Zillow, Redfin, local MLS, etc., is what some brokers in the area have been able to share with me.

To provide some more detail, I’m looking at ideally small multi unit properties (2-4 units). From what I’ve been told and have been able to find, most of those types of assets appear to be popular along the River in places like Covington and Dayton.

Are there potentially other areas I should also monitor for small multi family’s?

@Jay Mersfelder

Appreciate the offer! That is great to hear. Where have you been noticing a lot of the buyers/renters in the area are coming form? Cincinnati/Ohio area?

Hello! 

Currently looking into Covington, KY area for single family homes for my next investment. I have been doing a lot of research into the greater Kenton County area in general. I wanted to know if anyone has had any experience looking at potential investments in the area and have any general thoughts. I'm currently not located in this area so my knowledge is limited to what I can do online and from calling up local brokers. 

Thanks!