All Forum Posts by: Eric Tait

It is getting harder and harder to find Projects, but get out there and network with wholesalers, estate attorneys, title companies, and other investors.  We had been looking for 2 years for a nice value add multifamily project here and a wholesaler brought one to us. We are still negotiating, but they are out there. 

@Julie Macd

Got it, the wife and I looked at Jamaica as a possibility for investment as well as her family is from there as well.  

Good luck on your endeavors. 

@Julie Macd

 It is very difficult to finance smaller one off properties internationally, you may have better luck with international banks if you are part of a larger development. 

If you don't mind my asking, why Jamaica?

I'm with Brian and Joe on this one, they are out there but it is very much a relationship game. 

We are in contract on a 97 unit value add here in Houston as well, and it is was brought to me by a friend who is a wholesaler. Yes it takes looking at a lot of deals, but they are still available.  You just have to make sure that you do your due diligence and stick to your numbers. 

what book would that be?

Lifestyles Unlimited has good free seminars as well. 

The Real Estate Guys have a great syndication seminar. It is a soup to nuts look at all of the people you will need on your team. I have gone multiple times and I still get something from it each time.

https://realestateguysradio.com/events/how-to-raise-money-for-real-estate-investing/

@Amy B.

If you are looking to purchase a distressed property, remember that you can write off alot of the costs of renovation, that will give you a tax deduction that should lower your income against you taking the money from the 401K.

If you are going to kill it, try to make sure that they do not withhold more than the 10% penalty.  If your rehab is big enough, you may not have to pay any taxes on the money that you received from the 401K. 

And for employer sponsored plans you can borrow 50% of the value of your account or $50,000 whichever is less. 

If you have any investor who invests with you where you are doing all of the work creating the return and they are expecting a return you have security, 1 investor or 1000 investors.  

There are instances where you do not have to jump through a full blown exempt offering, but as was stated, speak with your own securities attorney. 

As for your proposed structure. Your private lender will lend to your equity LLC, (you may have to personally guarantee the loan) but should not be a part of the LLC. They are just a debt investor.

Now, if you wanted to, you could create a lending LLC where you sell notes to different investors (yes this is a security) and then you can lend the money from the lending LLC to the equity LLC that is holding the property. That way you can have investors who like debt in your projects as well as investors who like equity in your projects.

I agree with the 1 LLC per project situation (on the equity side) just because of the issue that Rick brought up in terms of valuations. But on the debt side, you do not have that issue because you would be offering a fixed note potentially backed by a number of different properties, that would actually give the investor more collateral potentially to back the notes.