@denise_dewald@dennysgrandsam_ this problem is solved with massive adoption of owner financing. The owner becomes the “bank” which gives the “little guy” a massive decrease in barrier to entry. (5% down payment instead of 20%, no credit check, no bidding wars, parties decide interest rate instead of bank, etc)
Owner finance it at 5% & take the 20% down payment to move on something else.
Monthly cashflow of $1,000 interest only + balloon payment of remaining $240k principle in 5, 10, 15 years. No tenants, maintenance or capital gains.
If you inherited a rental today that is worth $300,000 and is completely paid off and gives you a profit of $2000 per month. Would you sell the home or would you keep the home?
@Levijameshere I have a Seattle/Tacoma industrial warehouse owner willing to carry the contract. Wants to clear $200/sqft at 154k sqft ~($30.5M)
$10.5M note held on prop currently
5.88 CAP upon acquisition
Something that catches your eye? No worries if not. Just putting hooks out.
@AnthonyTumbiolo we’re on the same page. Initial capital secured by the property & managing members PG. It’s all laid out in partnership agreements. Only so many characters via Tweet to explain.
@Scottbeverett words that rhyme w/ “tea” should always be baked into equity partnership agreements giving LP grounds for action. Pref returns are the same thing, just gives GP’s an easier out when they can’t preform.
@Scottbeverett LP’s - why would you prioritize:
6% preferred, 70/30 promote w/ 10 year exit averaging 6%-15% COC
OVER
50% equity ownership w/ an initial capital guarantee, no liability & averaging 25%+ COC? No fees.
(our terms)
I am genuinely curious
Magnolia Seattle DADU & ADU project! Very excited for this one. Bringing on partner(s) up to 50% equity. Renovate, rent & refi-cash out initial partners capital. (< 6-8 months)
[email protected] https://t.co/kzk7JRHswa
If interested in just acquiring deals for yourself - we have multiple off-market projects & development sites available for assignment in the PNW.
Please reach out w/ questions/rebuttals/etc.
Cheers!
New to content creation, but here we go!
As someone who sources capital for equity partnerships, rather than your typical GP/LP relationship - it’s a different ballgame. We raise up to 50% equity from partners to acquire, develop & reposition our assets.
A thread🧵
My partner has 30+ years experience as an architect/developer & his bank of knowledge is unfathomable. I hope one of you enjoyed this rant on equity partnerships & how they are beneficial to both parties.