All Forum Posts by: Zach Norton

find a used refrigerator on craigslist or facebook marketplace or some local reuse store. No reason to buy a brand new unit if the tenants are hard on appliances 

where in ohio are your properties? 

Thanks for the response Brett. Totally understand where you're coming from about partnering with family and friends but I don't foresee that being any issue. I think you're right about the syndication model being a bit much. Essentially the total group would be our existing LLC, an additional brother and a very close friend to all of us.

Hello all. I am seeking some advice in regards to using capital from friends and family who are interested in investing in my real estate portfolio but do not want to be directly involved in the day to day management of them. My brother and I currently have an LLC and a partnership and have acquired 9 SFH long term rentals in our town. To finance these previous homes we have used a HELOC and LOC from a local bank and used the BRRRR strategy. We are in a situation where we would like to expand into multi's and smaller apartment complexes. We do not have the capital ourselves to do this but we have a few very close friends and relatives who would like to participate in funding such a purchase. What would be the best way to incorporate their investment into our current situation strategically and legally? Thanks for any advice or information.

I guess the real question is what is your budget and what do are your comps on a resell? Does the large expense of drywall fit into your overall plan/budget? I would suggest you paint the paneling, It'll look great. As Andy mentioned, make sure the paneling is clean before using an oil based bonding primer. Any paint store will know exactly what you need. This ensures that the old oils and colors don't bleed through the new paint. 

sounds like you're in a position to do multiple things with your likely high W2 income. you could do a HELOC on your current home to pull out equity to use for your next purchase or refinance your current rental property and pull equity out of that to move into a larger project. this way you can keep the current rental and continue it cashflowing for you. I would then consider purchasing a multi such as a triplex or quad to begin building your door numbers.

If that route sounds like an option for you I would talk to your bank. Explain to them what your goals are and see what type of HELOC or cash out refinance options they have. You will want to shop that around because a lot of banks are different. they will know what you do for a living and a lot of banks have options for docs and medical professionals- lower interest rates, etc.

I would recommend a new agent who understands your goals of these being investment properties. your numbers aren't even lowball offers. I have offered 30-40% below asking prices and successfully bought the houses. If your agent isn't willing to try to negotiate with sellers than he is doing you a disservice and you should move on from him 

do you own your own home? could you take out a HELOC to fund your first BRRRR home/duplex? the strategy there would be take out the HELOC, purchase your first project with cash, renovate it, rent it, then refinance through your lender. you will have to be spot on on your numbers as the refinance will only get you 75%-80% ARV. you then pay off the HELOC and move on to the next project and repeat.

I have used my local auditors website to find property owners and have had good success tracking them down on facebook and private messaging them. see if that is an option. in larger markets may be hard to find the person but worth a shot 

Thanks @Lucas Duce. Will consider that. I appreciate it