All Forum Posts by: Shiloh Lundahl

@V.G Jason You seem upset. 

@James Hamling it is a work in progress. The thing that got me considering this model and actually scaling it was a call I got from a friend. He told me his accountant told him he needed to buy some real estate to offset some of his taxes. I gave him some ideas of how to purchase some properties under market value, and then get them fixed up and force equity that way, but he told me that he would rather just provide the capital and have me run the projects. I told him that I could do it and we could split the profit. He liked the idea so we created an LLC and a partnership agreement and he deposited 100k into the business account. We have 2 out of the 3 properties finished and leased out and the other one is in the middle of rehab.
There have been a few things from this partnership I have learned that I am going to tweak moving forward. 

And from this thread there are a few more things that I am going to tweak. So I appreciate the feedback that I have gotten from people experienced in this model. 

@V.G Jason you will have to forgive me, I know very little about you. When I click on your profile, it shows nothing. I’m not sure if you are an investor with a little bit of experience or a lot of experience.

In contrast, it’s very easy to find out a lot about me. I try to put as much relevant information on my profile as I can so that if people are wondering where I get my opinions from, they can look at my  background and experience. 

I encourage people to be able to research the people’s opinions they’re listening to or reading about because not all opinions are helpful.

@Stuart Udis be careful not to interpret my use of words as upset. I use words calculatedly for a living. 

It has been awhile since I have been active in the forums so you may not be used to my posts. I tend not to be a conventional investor. I tend to invest outside of how the average investor invests. And it has paid off. I will often go against the common investor thought and defend my position based on my experiences. And when I point out someone's lack of experience to back up their statements they get upset at me, swear, and name call. So I am used to it. 

What you are saying about someone being able to invest in real estate and they don't have to give away 50% of the deal is absolutely correct. However, when I go to meetups and I talk with people who are new at real estate, they often don't know where to start and they feel overwhelmed. They would like to do a deal but they don't have systems in place or contractors or sub contractors and everything is new to them. They can jump in and get started and learn along the way like most people do. However, most people don't do really well on their first deal by themselves - me included. There are also people that have high paying jobs that require a lot of time and they don't want to learn the process of real estate investing. They just want to place their money with a good operator and get better than average returns. This type of partnership can meet the need of a specific type of person. That's all. And I may be a good fit for that type of person. What I would like though is to get the feedback of people who have done similar types of partnerships and have learned through experience the pitfalls that I should watch out for when investing using this or a similar model.

Because of this post I have already had a phone call with a mentor that gave me some good advice and I am just looking to continue to get some feedback from other experienced investors too.

@Alan F. I am sure@V.G Jason has given great information and opinions on economics and things he knows a lot about.

I myself don't give my opinion about land investing (even though I own land) or large multifamily investing (because I've never owned a multifamily larger than a 12-plex) or commercial real estate or mobile home parks or luxury short-term rentals (even though I own all of those). Just because I own something and am familiar with it, doesn't mean my opinion is relevant or even helpful. I don't have that much self aggrandizement to think my opinion is helpful about things that I am not an expert at. Likewise, I don't listen to the opinions of others who are not experts about the specific subject either.  I think it makes someone look foolish to state something is a bad investment in a forum where many people, operators and money partners alike, have made lots of money working together on that specific type of investment.

Whereas I may not be an expert at the things that I referenced above, what I am an expert at is buying properties under market value in 5 cities in Arizona. Then we get them fixed up with crews that my project manager runs and we fill them with tenant buyers. We conservatively make about 70k in profit on each of them with about a 90% success rate which I think is pretty good in a competitive market. 

What I am looking for in this post is to get good feedback from people that don't have a "Big Hat with little Cattle" or a big mouth with a small portfoli. Or in this case little to no experience in partnerships. 

Hey @Ken M. it has been awhile. I know you have been using a version of this model for awhile. I'd love to know how you structured your partnerships in the past and how you have altered the agreements over time and what situations led you to alter those agreements. 

It would be great to meet up again some time. I'd love to get your feedback on how to change up my partnership contracts so that they set up expectations clearly and limit liability and obviously avoid any lawsuits. 

@V.G Jason Wow, you don’t work partners. That’s great for you. I’m just not sure why you would give your perspective or advice about partnerships to people who do work with partners

The majority of deals that I do and have done have been with partners. I built a portfolio of 250 units (80 Single family, 30 in multifamily, a commercial building, and 100 in mobile home parks) with a partner. And various other projects and deals with other partners. I have found a ton of value in partnerships. I’m just curious why you commented on a thread about partnerships if you don’t do them. Maybe I should have stated in the original post, if you don’t like partnerships or don’t do partnerships then don’t feel the need to comment.

And yes, every post I make, whether it’s on BiggerPockets, Instagram, or my YouTube channel about real estate sells my services. See what I just did there. Smooth like butter. King of subtlety. 

@V.G Jason it seems like you don’t see that this type of partnership would be enticing for people who want to be passive investors.  Walk us through one of the kinds of deals you do with partners that are enticing for them. 

@Ken M. I would be the one who makes the decisions. Remember, we would split the profits as well as any losses. And it is just one investor per deal. 

When you borrow money you agree to pay it back. Wise lenders have borrowers sign legal agreements and have them provide collateral that is worth more than the amount of the loan in case the borrower doesn't make the promised payments on the loan. The borrower can then legally sell the collateral in order to recuperate their money that was lent. Whether that collateral is a home, or car, or anything else of value that was pledged against the loan. 

Then what happens is the lender reports your payment history to the credit bureaus and each time hereafter if you ask for another loan and the lender pulls your credit then they are going to see your payment history and whether you made your loan payments or not which will likely influence whether or not they lend you money.