All Forum Posts by: TJ Thompson

Rob/Sherry,

We discussed an LLC but it seemed like it was an unnecessary partnership that could be better served in a JV agreement and a note. What was the advantage of the LLC? Aren't there risks with an LLC, that a bad decision by your partner could put you in a bad position?

@everyone except F Foster- Thanks! This was very helpful and consistent with strategy I'm taking via my partner's advice.

@F Foster- did I give the impression that I was working off a handshake? That is simply not true. I was looking for advice on what documentation I should pursue which this group kindly provided.

On the other hand, you're right that I am a trusting soul, but I've found that in the long run that being trusting attracts trustworthy people.

What were you hoping to add with your post? I missed it...

me 40, her 60. The deal was 50/50 if I paid 100% of the purchase price and repair.

FYI: PP is 76K, repair is estimated at 33K, and ARV is estimated to 145K

I'm planning to partner with a local REI on a home flip. As we've worked it out so far, here's how it stands t play out:

1. She found the house, presented the comps, and proposed the repairs which I've agreed to.
2. I pay the full purchase price of the house and half the repair fees.
3. She pays the 2nd half of repair fees.
4. She closes on the house with my money (because that was the initial deal) and then turns over the note and deed of trust to me. She legally owns the house, but I own the note and it's secured against the deed.

Is this the right way to handle this? Anything I should look out for? I guess I should get the note when I first lend the money, right? But it won't be secured until she closes on the house, right? I trust her, but let's just assume I'm wrong, what's my exposure? In general, what else should I look out for?

One other thing I was thinking about is that the money I loan for the repair work will be unsecured. Should I do it "pay as you go" so there's no chance of that money disappearing?

Thanks!

I'm curious, over the past couple of decades, have apartments and multi-family buildings generally appreciated in market value at the same rate as single family residences?

In other words, will my equity growth only be in paid principal or will it also come in good appreciation.

Now I understand every market (time, location, demographic) is different, I'm just looking at how these compare to single family residences over the long haul on average.

Thanks,
TJ

Hey Drew,
Good to meet you. I'm also in Austin, perhaps we'll work together soon. I'm new to REI and in the information gathering phase, but antsy to start investing!

TJ

Curious, what's the 50% rule?