All Forum Posts by: Steven Stokes

I have done a few of these type of transactions. My first piece of advice is get the best attorney you can afford because that will pay for itself in potential headaches and problems. I would not bring them into your LLC instead I would create an LP for your outside investors and together your LLC and the LP purchases the target property. It might sound complicated but it's pretty simple and safe.

To be honest no one really "KNOWS" what is going on inside of the SBA because they are still getting their act together. There has been more misinformation than real information as as far as I know no one has actually gotten any money out yet. 

This is turning into a win for big businesses and a nightmare for small businesses. I would suggest following reddit for minute by minute updates. Here is the search I use 

https://www.reddit.com/search/?q=eidl+sba&sort=new

There are a lot of ways to do it but if you are just starting out your best bet is to start networking with other legit investors, offer to help them for free by researching properties or bringing them a deal they would be interested in. Once you earn their trust then start finding deals you can partner together with. But trust comes first, it will be hard for any investor to part with their money to an absolute stranger unless you want to go the hard money route. But with hard money, there has to be plenty of equity in the deal so the HML won't lose money if you're wrong.

So network, get to know investors and gain their trust, then start working at some partnership deals. 

That's the steps I would follow if I were just starting out.

I hope this helps. 

Good luck

You should talk to a Medicaid attorney to get the best answer for your specific situation but in general the initial concern is that, with Medicaid only allowing $2000 worth of assets, selling any home will almost certainly bring the owner above the allowed-asset amount and, at first glance, seem to disqualify the homeowner from Medicaid.

But if you dig into your states Medicaid policy handbook, you will find Sections 1640.0537, 1640.0543.03 and 1640.0307.01, which can be helpful.

You will have to google Medicaid policy handbook for your state to see the rules for your state. 

I hope this helps point you in the right direction.

Good luck

If I could find a home in the bay area for 300 - 400k I would buy it in a second. Most homes are still touching 800k in most areas. 

The bay area is the most expensive housing market in the country. But three cities in the bay area are leading in the down trend for real estate values. 

https://www.realtor.com/news/trends/slow-down/

Also its getting harder to flip homes which is also a sign of a cooling market. Median prices still went up even though inventory increased so its still a mixed market but most signs are moving toward downward pressure. 

If you are planning on buying to hold you can ride out a downturn but you might find better opportunities in markets outside of the bay area. 

I hope this helps. 

Good luck. 

Yeah I agree with what the others have said. But I would go the extra mile and tell him you are new and just bought the property and you are understanding of his feelings. I'm not saying he is right. I'm only saying it's not worth the fight. 

I would tell him that you will contact the power company and see if there is something they can do. Frame it as if you are on his side. Easing his concern is better than going to war against him. You never know if you will need his help in the future. 

I hope this helps. 

Side note: I know some people have strong political feelings about things but can we all get along and not divide each other please. This is a great group with wonderful people and I love you all. 

Nelly, I feel you are on the right track and you're motivated and what you are thinking of doing is good. If I were you I would talk to your realtor and state your concerns with them. If they do not improve then you should get someone who is as motivated as you are to get things done. 

The only other advice is start making your real estate investing business something that's a habit. Dedicate a certain number of hours to work your business and stick to it. Pretty soon it will become a part of your life and it will be automatic. But you have to force yourself to make it a habit to move forward. 

But really great job on how far you have come. Congratulations! 

Congratulations on your success. I hope it continues to increase. So I won't mention the pitfalls, risk and overall dangers of partnering with family, it seems that you have already made up your mind about that and it wasn't the question. So I'll stick to answering your question from my experience when working with partners. All of your scenarios seemed reasonable. And what I mean by that is you don't seem like you are trying to take advantage of your partners. But what you're asking is more of a personal preference between two or more people. Scenario A might be what I would choose, while scenario C might be something your family member might choose. Personally, how I would do it, if possible if have a meeting with all parties involved. Walk them through each scenario, while also telling them your bottom line what you're willing to accept.

When I've had a meeting with all partners together in the beginning of a deal, and we agreed on terms in the beginning together it created far fewer headaches during the time we worked together because it was transparent and everyone had input. I think this has worked well because everyone had buy-in in the beginning and no one felt they were being cheated.

You still have a lot of control because you are the one creating the options for them to choose from but they still feel empowered because they have a choice. 

I hope this makes sense. 

Good luck. I look forward to hearing how it goes.

@Anthony Marini here is a link to how to do your own background check. This is very extensive but it's worth reading. A link to two of the better online services is at the bottom. 

https://www.quora.com/What-are-the-best-most-reliable-online-background-check-companies