All Forum Posts by: Chris Martin

There are thousands of posts on Bigger Pockets related to your question. Google things like debt vs equity JV for instance. Other searches like this may help - equity splits for partner flips. Hopefully you get the idea. 

Since you are putting "no money in the deal", don't expect unreasonable returns. 

Arguably the "easiest" financing method is debt financing. Example "reasonable terms" could be 1% per month with 1% up front and 1% on exit, 6-month (I've also done and seen 12-month) term with an extension permitted if milestones reached. But keep in mind that investors can get an annualized 5.39% through Treasury Direct on a 4-week T-bill, and for a LOT of investors that's a lot more attractive than 12% (annualized) on what looks like an undercapitalized real estate "deal" with a lot of risk. 

With virtually no information about your lender or the "deal", that's all I can post about (which is limited.)  

Cedar Park Texas looks to be a suburb of Austin, where your profile says you reside. If you can't make it work in Cedar Park Texas, why do you think you could make numbers work in Raleigh, 1000 miles away? Getting any cash-flow positive rental property in (WC) Wake County, today, is not impossible, but very improbable. I only have 22 years full-time investing experience in the WC market, so what do I know. 

Disclosure: In WC, I have sold multiple properties in the last 18 months and bought 0.

Quote from @Johnny Ruiz:

I am a 19 year old wholesaler who is looking to go big this year. I own one property, but I would like to know how do I build a real estate empire like Trump? I want to know how I can better organize my marketing, my business etc. I notice the 50 unit lifts and this is something I want to rehab and hold throughout New England. Any advice on how I can structure my business?

I realize this is an older post. 

It appears, per court records, that DJT built his 'empire' fraudulently. Fox News had a recent report, New York judge rules Trump committed fraud while building real estate empire.

So, the answer is: don't commit fraud and operate your business legally. It's very clear to me as a non-lawyer, that, from the deposition that summary judgement was warranted. DJT confessed, frequently, to plaintiff claims. My only advice: Don't be that guy. This verdict will be appealed indefinitely but will ultimately stand. Per court records, the trump LLCs will be liquidated, and proceeds will distribute per lien order in the upcoming judgement proceedings. 

Other states (see also NC proposed bill to outlaw institutional landlords) have had similar legislative proposals, but I'm not aware of any being passed. 

On the state level, Ohio law (Section 5321.19) currently does not permit rent control (emphasis is mine):

(A) Except as provided in division (B) of this section, no political subdivision may enact, adopt,
renew, maintain, enforce, or continue in existence any charter provision, ordinance, resolution, rule, or other measure that is in conflict with this chapter, or that regulates the rights and obligations of parties to a rental agreement that are regulated by this chapter, including, without limitation, by any way imposing or requiring rent control or rent stabilization.

If you read the text of the proposed federal bill, the stop predatory investing act, only future investments would be impacted:

(b) EFFECTIVE DATE. —The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act.

Even if these bills pass, which I doubt will happen, I don't see these bills as having a substantial impact on US or state (e.g., NC or OH) real estate overall. 

Interesting. 

Not only apartments, but Thousands of renters, farmers, and schools would be impacted as well. 

On the east coast, the answer has been to go 'off-grid' and bypass the grid for operations that can handle it. It's usually best to work with net metering and the 'system' if possible. Hard to believe that CA would cut off schools and farmers, but that looks to be the mission. 

I hope this works out because the rest of the country looks at CA as a template for solar energy policy. 

Not an opportunity worth pursuing from my standpoint. 

From: "The daughter was put on a beneficiary deed in 2017, but I've talked to her and she says she wants nothing to do with the property." Sounds like she owns the property. When the city comes after people, they go to the owner. If you are hell bent on owning this condemned property, have her deed you the property and then, since "she wants nothing to do with the property" she can be legally free from any obligations. That's the big 'what's in it for me' pitch. No lawsuits from the city. Then when you are the legal owner, the mortgage company might talk to you. 

Make sure you have that attorney you talked to on board. Without payoff and lien info, this is a complete gamble for you, IMO.

Lots of red flags. "•you can send funds directly to me or GC if need be." The closing attorney should handle all closing funds, always. 

If you were in NC, I'd say contact the attorney general's office. I've done that twice with real estate scammers, both times the NC AG was really quick to respond and shut down their scheme. 

The Alabama AG might be the best option on this "wholetail deal". 

Quote from @Jaron Walling:

Is the auto industry big enough to create ripples in RE markets? If so, why? The UAW just escalated the "stand up" strike to 38 new locations. This includes everyone already striking. This affects thousand of UAW members and numerous part suppliers. I don't see the negotiations ending anytime soon. 

Transitioning from ICE to EV requires sacrifice. I think disruption in the auto industry combined with other economic red flags could create big impacts on our economy.

?

I think you have his quote wrong, from the UAW president interview several days ago (emphasis mine)

"UAW president Shawn Fain said “we’re not going to wreck the economy. The truth is we are going to wreck the billionaire economy.”

A week prior, Fain said in an interview:

“In the last four years, the price of cars went up 30%. [Automakers’] CEO pay went up 40%. No one said a word. No one had any complaints about that but God forbid the workers ask for their fair share,” he said. “It’s not [that] we’ll wreck the economy. We’ll wreck their economy, the economy that only works for the billionaire class and not the working class.”

The auto industry is certainly big enough to cause ripples in some economies. Nationally, I don't see a big impact on real estate short term, even with a longer strike. Remember, the foreclosure process takes a long time (years) so if people don't pay their mortgage next month, maybe by 2025 we'll see consequences. Bigger housing impacts, long term, IMO are things like our overall national demographics as well as obsolescence of some of our industries, like ICE auto. 

The sums (damages) you describe are well beyond small claims. Missing property constitutes a crime. In cases like this, a police report and insurance claim (via tenant's rental insurance policy first, mine second) would be (have been) my first choice. 

It is certainly possible to ask a lot/parcel owner to subdivide and sell a parcel to you. There are plenty of cases where parcel owners, for instance farmers, split out and sell road frontage land for single family development. You can see this up and down Rt 242 south of Benson, for instance.

While you can ask, don't get your expectations too high. Also, you will want to know the soil types, supported/available utilities, where to establish easements (if no road frontage), and per acre pricing at a minimum. AcreValue.com (fee service) can provide details on valuation(s), usage history, etc. Wake County iMaps can provide soil types, as seen in the example below. If you turn on well and septic icons, you can mostly figure out what/where to avoid, like flood plains.