All Forum Posts by: Joe Bourguignon

Welcome to BP from a fellow Portlander!  :)

Our prices here are a bit prohibitive right now, but excited to hear what you get up to.  You might search for wholesalers, etc to find some "deals".  Right now, I'm looking in other markets, but always hoping to find something additional local to invest in.

Nice to meet you!

-joe
 

Wish I could make it; I'll be out of town.  Have a great meetup, and see you at the next one!   :)

Cheers,

-joe

Congrats on the successful flip, @Brian Claar!  Sounds like a great deal, and you managed to turn around an undesirable property.  Cheers!

-joe

Hi, BP! My friend and I are considering a partnership, which would look like the following: 

• He brings most of the downpayment via a 1031 exchange
• I find/analyze the deal and get it under contract
• I get the financing, since I have a W2 job, and he's self employed
• I manage the deal

What should the equity and cash flow splits look like?  What about if I had to bring some of the down payment?  

I'm assuming we will draw up an LLC partnership with a real estate attorney and they should be savvy enough to write a contract for us, based on what we agree to... In order to protect everybody, does somebody (the down payment bringer) need a lien on the property? Will a bank let that be in first place, or is 2nd ok?

I've read on this topic on BP here and here, but didn't find anything similar enough, so I thought I'd post a new topic. I enjoyed @rick baggentoss' (not sure why tagging isn't working? Mods, can you tag him?) commentary in that first linked post, since it separates out percentages by "job duty", which seems equitable, as long as everybody agrees!   :)

Thanks in advance!

-joe

@Oleg Shalumov, congrats on getting this property under contract!  I'm looking at a few MFs in Cincy as well; we should talk!  I'm close to offering on one but just need a partner / OPM to finalize the offer.  

-joe

Is it possible to get a bank loan to 80% LTV and seller financing for the rest? I'm assuming that in that scenario, the seller would be in 2nd lien position, and I'm not sure how you re-assure them about that...?

@Zach F., thanks! That was my intention!  What neighborhoods do you avoid managing, or is it more block by block?  Cheers,

-j

Thanks, @Ayodeji Kuponiyi! I'm not local, so I haven't been to their REIA yet, but my next trip there, I will for sure. :) What markets are you in? Best of luck to you too!

-j

@John Lenhart, I'm looking all over currently. I haven't settled on one neighborhood yet, and am trying to learn about several of them. I've seen some people on BP saying that the West side is to be avoided and some say that it's ok... 

Clifton, CUF, Mt Auburn, North Avondale, Queensgate, Walnut Hills and Westwood are where I've started my MF search so far. What do you think about those neighborhoods, and do you see any up and coming areas that are worth checking out? I'm interested in OTR, but parts of it are still pretty rough currently, so it seems block by block...  I'm not local to Cincy (obvs), so any advice from a knowledgable local is much appreciated!

@Dave Van Horn, thanks for your answers! I'll call some portfolio lenders to see if they'd let me use a note as collateral. Know any private lenders who might lend a percentage against a performing 1st?  

Cheers,

-j