All Forum Posts by: Tristan Cottarel

@Nicholas OPatterson Check out Bloomington Indiana Real Estate Investors on Facebook, it’s a pretty active group and I think they just started doing in-person meetups again

@Brandon Carlson I dont believe we were able to connect! Sent you another PM.

@Natalie Allen Wondering the same as Brandon. Let me know! Thanks!

@Brandon Carlson

Hi Brandon,

I am from CA and own a duplex in Bloomington. Happy to answer any questions or chat sometime. Feel free to PM me

@Jim Adams, III

Hi Jim,

I’m based in Denver but own property in Bloomington. I’m always open to chat!

@Abby Peng Welcome! I’m based in Denver but own a duplex in Bloomington. Always looking for more opportunities there and am always open to chat.

@Derek Jones also always interested in exploring partnerships. Maybe we can connect!

Hi Wes,

Hope you're healthy. Wondering if you're still actively wholesaling in Bloomington. I'd be interested to hear more about any leads.

Hi all,

My business partner and I recently closed on my first duplex (out of state) and are trying to get some renovations underway. After weeks of reaching out to different contractors with very little success, we finally were able to establish rapport with one. He took the time to walk us through the house over FaceTime and walk us around the neighborhood, seems like a great guy.

That said, we just got the itemized quote from him, and I have no idea if his bid is reasonable.

He's quoting 10 hours to tile a 40 sq ft bathroom (just the floor, this does include removal of current vinyl floor) and 4 hours to install a new vanity. He has emphasized that he quotes on the high end and often comes in under budget, but I can't image any of this stuff taking more than half what he's quoting. Am I crazy?

I have read that one should not work with a contractor who charges hourly, so I will look into that, but for now would really appreciate any opinions on the matter above.

Thank you

Just a follow up here. I ended up speaking to a syndication attorney. He told me:

If an investor is truly passive, it is a security, and therefore syndication. Simple as that.

Thanks again everyone for your input and I hope this is helpful to someone who might stumble upon this thread in the future.

Thank you @John Corey and everyone else for your response. @Amy Wan could you elaborate a bit on why it sounds like a security? I'd be happy to book a time slot with you as John mentioned if needed.

@Andrew Postell thanks again for your continued responses. I understand that it wouldn't make sense to create a syndication on a small deal like this, but what I am wondering is if the structure I proposed is or isn't a syndication, whether or not it is worth the money.

@everyone This makes me question all these BP books I've read about raising money from a passive investor to buy a SFH or other small residential property. They give countless examples of using a retired friend's SDIRA to fully fund a deal while taking a cut for themselves. How is that not syndication?

Hi all,

Thank you for the input.

From Raising Private Capital by Matt Faircloth from BiggerPockets Publishing, a deal is considered syndication if it satisfies the following four requirements:

1. 1. An investment of money
2. 2. In a common enterprise (ie. under the formation of an LLC)
3. 3. With the expectation of profits
4. 4. Solely through the efforts of the promoter

Clearly the first 3 are met. However, Matt writes that #4 is the key element for disqualifying your deal from being a security. He notes that discussing business decisions such as major maintenance and expense reduction. "As long as all members are contributing in some way to the goals of the business, it's not a security" (p. 159).

@Andrew Postell is this the same reason you agreed that it was not in fact a syndication deal?

@Jeff S. if define a role in the contract something along the lines of (for example), "Partner" shall approve of all capital expenditures exceeding $X and approve of all new tenants being placed", is that sufficient to exclude this from being considered syndication?

We also had a paid consultation with an attorney in the market we are investing in, and he said setting up LLCs in this way is something he has done before. He did not note any concerns about the SEC.