All Forum Posts by: Sergey A. Petrov

Do the four doors you own have no equity? It shouldn’t be that way and if you are trying to get into the next one without bringing any capital to the deal, you might want to take a step back and look at your investing approach. Something tells me you are over leveraged and the next one will tip you into bankruptcy 

Quote from @Haroon Tauqeer:

@Sergey A. Petrov can you expand on this please? Are you saying I collect 2% every month?

Yes, you get a bank loan / mortgage at 3.5%. You charge your partner/buyer 5.5%. Your partner buying you out makes monthly payments to you as if it were a 5.5% mortgage. You make your monthly payments to the bank that are based on a 3.5% mortgage. The difference is your to keep to compensate you for your efforts and the risks you’ll be taking on 

I don’t see this as an equity position. You are essentially selling and owner financing. No need to hold on to the property (with liabilities and taxation attached). If the bank is 3.5%, your rate is say 5.5%, and you keep the difference 

Your pro membership gives you access to those right here on BP

COC is cash on cash. If cash went into the deal, it is part of the equation

The mismanagement likely comes from the Board as it is the Board who makes decisions, approves budgets, and maintenance projects. Get on the Board, reach out to owners, build a coalition of like minded owners who see the value of proper upkeep and start chipping away at things one at a time. If you want to enact change, you have to be a part of it

They are all different but, generally speaking, I believe your description of it accurate. In this case, @Edgar Ruelas already said he saw it on MLS so it definitely applies. If I were the one who listed it and the seller then took it off the market and sold it two days later, I'd make a claim regardless. There is just no way for it to be a random coincidence

Yep that is the question and you are probably the only one who has or should have the answer. You are buying for $100k. You bring $20k, a private lender is contributing another $20k. Where are you, as the buyer, getting the other $60k??? And whatever other funds you need for the rehab????

This thread certainly spurred some discussion! You have two options

1. business decision - raise the rents to market and not even think about it (that’s what I would do and my wife would be ok with it)

2. marriage decision - talk to your wife and make a mutual decision. You’ll have to give and she’ll have to give. If a decision can’t be reached, seek marriage counseling or designate one of you to manage the rentals without the other’s input 

Lots of ways to go here. First and foremost you may not even need an LLC. If you choose to set one up, you could set it up in WA and then register it as a foreign entity in whatever State you are buying. Setting up an LLC (or not) is unrelated to taxes. If the State you buy in has a tax you'll need to pay it (or at the very least file a return) whether or not you have an LLC