All Forum Posts by: Steven Joseph Fogarty

Hi. Notes Newbie Question for any experts on Notes. Is what I want to do legal, is it a thing, and is there a clever way to structure such an instrument where it is legal?

PREMISE: a STR is net cash flowing $3,000 per month with a $150,000 investment, generating a 24% cash on cash ROI for the investor.

Can the initial investor SELL $1,000 per month net cash flow for a lump sum of $75,000, generating a 16% CoC ROI for the second investor? Can such an investment be structured where the property is owned by an LLC, and the second investor gains 2nd position lien for such a Note.

If this is not a thing, or not legal, I appreciate if anyone can point me to the law (Federal or other) or other regulations that forbid this.

Cuz it's a pretty cool idea, right?

Imagine having a $3,000 per month net cash flow after an initial $150,000 investment.

You could sell off $1,000 per month for $75,000 giving the new investor 16% ROI, and raising your ROI to 32% ($24,000 annual net cash flow divided by $75,000 capital investment).

You could then sell off the next $1,000 per month cash flow for $75,000, giving that second new investor a 16% ROI, while keeping $1,000 per month cash flow for yourself, and raising your ROI to infinite (no capital in, yet positive cash flow).

If this is not legal, why not?

Thank you Note Masters for educating the newbie.

Steve Fogarty

Las Vegas

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following ...

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Very interested in multi-family. Please contact if you know of any 4+ or more plexes in need of rehab or more. Thank you.

Steven Joseph Fogarty

702-904-2972

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The man's got some mad Spidey Sense!

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4 months before Trump announced Grant Cardone said on BP SHOW 107 "get 1/2 the country to hate you and you can become president.'

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Howdy. I'm trying to gather as much info as possible on a number of properties I'm considering buying in the midwest. Rather than find and contact each owner, I am trying to gather the information through a FOIA request - a technique I saw suggested by someone up here on Bigger Pockets.

Below is the email I've written, and the (largely) unhelpful reply I've gotten.

*****

"Hello. I am considering investing money into the [city] area by purchasing a number of single family residences (listed below), rehabilitating them, and making them available to renters. For purposes of due diligence, I want to gather the following information for the properties listed below.

Please provide a list of any code violations, liens, judgments, last 12 months of water billing, building permits issued, last 12 months of refuse service billing for the following properties."

*****

The city responded that there were "no code violations" for the properties, and that's it.

I wrote again, thanking her for her hard work, and asking when I will be receiving the other information I requested. Her response follows.

*****

"I can provide you with the Customer Service phone number for information regarding water/sewer/waste charges for the locations that you listed. We are unable to provide you with any other information listed, as it is not a service provided by the City of []. The City of [] Customer Service Call Center – Water is xxx-333-xxxx. Thank you and have a great weekend."

*****

I only submitted a FOIA request after I was turned away by this city's power and water. They only deal with owners. I believe power is private. Everything else is government.

Can I push this FOIA request further with this executive assistant to the CMO of this city?

Should I submit the same FOIA request to other city agencies?

How would you gather info on utilities, liens, building permits from roughly six properties you're considering buying?

Thank you!

Steven Joseph Fogarty

Las Vegas newbie real estate investor

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Originally posted by @Dan H.:

Originally posted by @Jason Patrick:

Why do we need the government involved in any of this to begin with? This comes down to property rights. An owner has a right to use his or her property in any way they choose as long is it does not harm the neighbors. If neighbors are harmed then they should prove the harm and seek compensation from the one who caused it. Take individual property owners to court on individual complaints, don't punish a whole market of potential landlords.

>An owner has a right to use his or her property in any way they choose as long is it does not harm the neighbors.

The statement is not accurate. When a purchase is made it has many items conveyed in the purchase. This can include things such as easements, mineral rights or the lack of mineral rights, and of course the zoning. Zoning plays a large role in the value of the property. Zoned residential has a traditional meaning that is being blurred with the advent of STRs. It was never the intent of zoned residential to include STRs that function similar to hotels (I am referring to non-owner occupied STRs). It is also unlikely that the zoning regulations/definitions would foresee the huge popularity of STRs to make it crystal clear that STRs are in functionality hotels.

The neighbors who have purchased in a residential zone, purchased with the expectation that they were in a residential zone and not a zone that would allow hotels or STRs. They have the right to expect the zoning to be as they purchased.

It would be similar to purchasing residential but a landfill is placed next door ignoring the zoning (extreme case to make the point).

We have 2 units of STR but they are both in an area that is probably greater than 90% STR. I realize it was not always this way but it is the way it is now. Even though we own 2 STR units, I would not want a hotel built by my house and using a house as a non-owner occupied STR is basically using a house as a hotel.

In the spirit of keeping the discussion fair, I'll point out that Dan has just compared a STR to a hotel, and to a landfill. It is neither.

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Originally posted by @Patrick Jackson:

Bed and Breakfast have been around forever. Now that someone has put Air in the equation there is an issue. Explain...........

Careful @Patrick, you might get James to start a campaign to ban old skool B&Bs LOL.

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Dave, thank you for the advice. Can you recommend something that throws off the best cash flow. Thank you so much.

- Steve

Originally posted by @Dave Foster: Separate the 475 into two assets - one cash only that throws off the best flow you can find.

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Mike M, thanks for the info. I'll need a few days to wrap my head around wraps, which I know nothing about. This is new information for me, which is exactly what I'm looking for. Thank you.

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All Forum Posts by: Steven Joseph Fogarty

Steven Joseph Fogarty has started 6 posts and replied 21 times.

Post: Selling a portion of STR rent as a Note

Post: Connected Investors PiN tool

Post: Hurricane Michael Investing

Post: Grant Cardone predicted Trump's presidency

Post: Grant Cardone predicted Trump's presidency

Post: FOIA request. How much info do they have to give me?

Post: Short Term Rentals (like Airbnb) have been BANNED!

Post: Short Term Rentals (like Airbnb) have been BANNED!

Post: If I had $475,000 cash I would get the highest ROI & cash flow by

Post: If I had $475,000 cash I would get the highest ROI & cash flow by