All Forum Posts by: Stefan Daniels

Quote from @Jimmy Lieu:

Quote from @Stefan Daniels:

Hello. I am a new investor with under 5 properties. I have a great portfolio deal and would like to tackle it, but I do not have the capital or profile. I am very open to a partner that brings the capital/profile but do not know how the deal structure would be.

The lender will do 75-80%, so we would need to bring the remaining for downpayment. The seller is motivated and would be open to some reasonable amount of financing, which could shorten the gap as well. I would like to retain control of the portfolio and have the option to buyout the partner in order to get their capital back quicker. Also, I expect a cashflow split in their favor until their investment is returned.

Any advice or guidance on this is greatly appreciated! 

When I do a 50/50 partnership, I bring the experience and do all the work and PG on the debt, but the other partner needs to bring 100% of the capital. This is how I structure my deals when it comes to working with capital partners. I've done private money as well! I'm a local investor and agent here in Columbus Ohio so let me know if you have any questions!

Thanks for the insights Jimmy! I am still building up my experience so I am partnering with someone with a bigger/better profile than myself. I expect I will be doing most of the work, with his guidance, and we will need to find a capital partner as well to bring all the cash. When I am in Columbus I'll definitely try to meet up with the REI folks there, cheers!

Quote from @Andrew Freed:

@Stefan Daniels - Create an investor package showing the returns, the plan, and the team and send it out to prospective money partners. Regarding structure, a JV structure would be best with the partners having some sort of control in the deal. Otherwise you can set it up as a debt play. The least desirable structure would be to have passive investors and set it up as a syndication which has a very high administrative costs and burden.

Perhaps something along the lines of a 7% preferred return to money partners with a (investors) 75/25% (you) split of all profits above that. Also, as indicated above, make sure your partners have an active role in the partnership, e.g. an advisory type role, otherwise they might be considered passive and it would be considered a syndication which bring up legal issues around whether the investment is a security or not. 

Thanks for the explanation and insights. You are right - I don't want to get into syndication. A debt plan would be better when I have a stronger profile. A win-win JV with a partner would be best since I would like their involvement and operational guidance.

Once I have the proposal put together I'd really appreciate any advice on it, thanks BP community! 

Quote from @Neil Cronkrite:

@Stefan Daniels Can you clarify, is this a portfolio of SFH homes? Apartments? Another asset class? What makes it a stellar deal?

Yes, it is a 100% rented portfolio of SFH, with many of them being rented to Section 8 tenants (guaranteed rent from the government/housing authority). That is the niche I am focusing on. Most of the properties are at below-market rents and the seller pays the utilities. This leaves a ton of upside to get rents to market levels and transfer some of those expenses.

As it stands, it is 7 cap with a proforma at 13.6 cap. I will put together an investor package that outlines all the financials. 

Quote from @Chris Seveney:

@Stefan Daniels

Post details of what you need. Partners will review and advise types of terms they would consider

Thanks for the input Chris, I will put together a deck with the details.  

Hello. I am a new investor with under 5 properties. I have a great portfolio deal and would like to tackle it, but I do not have the capital or profile. I am very open to a partner that brings the capital/profile but do not know how the deal structure would be.

The lender will do 75-80%, so we would need to bring the remaining for downpayment. The seller is motivated and would be open to some reasonable amount of financing, which could shorten the gap as well. I would like to retain control of the portfolio and have the option to buyout the partner in order to get their capital back quicker. Also, I expect a cashflow split in their favor until their investment is returned.

Any advice or guidance on this is greatly appreciated! 

Thanks for the responses gentlemen. 

The property is located in Hartville, OH. Houses are getting snapped up all around here and this is an off-market deal. Seller will part with it at 180k off-market, but will put it at 200k if/when they put it on the market. 

The property is in good shape, but there may be ways to add value to it and turn it into a BRRRR.

I am an entrepreneur and remote worker (unstable income) but have very good credit. So my thought is my work history may be an issue when it comes to traditional financing. 

I'm interested in a partner because I would like to ensure the deal/property's success. What I bring to the table and what the partner brings to the table could really complement each other. 

Hello,

I have been learning about real estate investing for years and want this to be the year I get my first property.

I have a good-looking deal in front of me but would like to approach it with an experienced partner. 

Purchase Price: $180,000

Property Type: Single-family home (4br, 1ba) with two additional units on site (2br, 1ba; 1br, 1ba)

Cashflow: $2,000+/mo

I have a good idea of how this property could be bought but I would like to buy it with an experienced partner since it is my first. Are there any recommendations of where to meet investors in Ohio that are willing to partner?

@Ryan E. Thanks for the response. And good point about the owner financing, I hadn't thought of that. I would like to explore the idea of an experienced partner on the deal.

But you're right to keep things secure I need some more capital. 

Thanks for the feedback.

Hello BiggerPockets community. First of all thanks to the BiggerPockets team for providing such high quality, interesting, and informative real estate investing information for everyone and creating a platform for people to connect. I have been listening to the podcasts, watching the webinars, reading the books, watching the YouTube channels, all to learn and prepare.

I am in a unique situation and would like to reach out to the community for advice and insights. I have been technically unemployed after university (3 years ago) because I'm an entrepreneur. I have a startup and that means I work without a salary and try to build the business. 

That means I can't qualify for an FHA loan for an owner live-in multi-family property (no pay stubs or W2). I have saved some money for a down payment (at least partial), but I would need support getting the loan. I would like some input on how to achieve this or overcome this barrier. 

I also do not have much of cash reserves. How much would be safe to have?

I would like to get a triplex or a quadplex to max cashflow, but I would get a duplex if its a good deal. I would have one residence occupied. However, I will not live there all of the time. That is something to consider when it comes to managing the property.

I would like to move forward with this sooner than later due to personal reasons, so any advice and insight on this would be greatly appreciated. 

Cheers!