Hi All,We're under contract on a multi-family (2 units) in Northern NJ and I've been in talks with a design/build company regarding plans and services.

Hey everyone,There have been several questions and several PM about the house designs and skus.If you want you can download a magazine of the house.

Has anyone bought brand new construction multifamily properties before for rentals?

If you wanted to create a brand and market yourself as a company then you could create an entity as well.

New investors sometimes get caught up in such things, along with naming their company, designing business cards, creatting LLCs and other time consuming tasks that don't make money.

For example, she is mandating that we provide brand new AC and furnace units because the current ones are "on their last leg" and all we do is put band aids.

Don't form a partnership unless you have detailed and extensive operating agreement covering all contingencies and strictly designating all possibilities and exit strategys.

If its a brand new listing I would be surprised if you get the bank to take less than full listing price right now, since the market is so strong in most of the country......that and inventory is so low.

An option is a purchase agreement that may or may not be exercised by the buyer.If you design the agreement as an installment contract a lender will look at the deal as a refi and close the mortgage as a purchase.

If the investor is the one who really puts all the terms together to be approved, meeting requirements doesn't mean the guy who designed the deal is off the hook, it becomes an issue of the seller becoming the innocent party.