Need Help With Partnerships
I have been approached by someone I have known for years about parterning up on some deals. He has watched me this last year do 13 deals and has become very intrested in investing. Does anyone know of any good books or advise on how to set up a partnership. Thanks for the help.
John,
Long time no speak. Thank you for the input. Can I do an LLC with someone not located in my state? Also what is your feeling on partnerships. I have been using your course for over a year and a half and have been very successful on my own but I want to countinue to grow and I was thinking this might help. Do you recomend any books on the subject of partnerships or LLC?
I only have one other question I say in one of your post that you have updated the course with a new feature that helps you evlauate the investment. Would I have to purchase the complete course again to get it. Any way that is for a different time.
Thanks again.....
James,
You understand that as a student you can call me, part of what I do.
John $Cash$ Locke
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10-4
John $Cash$ Locke
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I might go the route of an S-Corp just from the tax advantage point of view. Generally you want to flip in a corporation and hold in an llc. An S corp will save +- 12-14% over an LLC in personal income taxes etc.
you need to evaluate what your goals are.
i wonder why you say the "hassle of rehabbing" but you want to be landlord. i guess everyones idea of hassle is different but you will probably have just as much a hassle or more landlording. and if you can make 30k on a rehab in 6 months why wait 2 years to make it on a multi fam?
i would love to buy and hold multi fams in my area but the prices are just unrealistic. i suspect the same is happening to your market. thats why its called a sellers market. i try to buy low and sell immedietly weather it needs "rehab" or not. usually i will look for deals with minor rehab/cosmetic work or none at all at a steep discount. these deals are very hard to find in a sellers market because people are able to sell there houses at close to full market and get a contract on it fairly quickly, so it doesnt make sense for many people to sell at a steep discount.
the only way i will take a multi fam in this market is if i can get it sub2 with putting no more then a couple grand up and it has to cash flow. or if someone is selling at a steep discount because they are sick and tired of being a landlord.
if you want to buy a rental unit go for it. just make sure it cash flows and dont expect the price to appreciate like it has in the past (it could even go down)