Need Financing..Considering A Partner?
I have a chance of getting into this property that needs rehab and a chance of making a decent profit.
Anyway, I don't want to go through a lender if I don't have to. I have a couple of people that may want to partner with me and have the cash to help me aquire the property and fund the rehab.
What kind of terms can I offer to them? How do I structure the deal with them? I just want to borrow their money for buying the property and cost of repairs.
Any advice would be helpful!!
Chris
You can set up an s-corp where you own 51% of the shares and the investor owns 49%. Your investor puts up the money, you do everything else. In the end you split the profits 51-49.
50-50 splits are bad because it leaves the court as a the sole remedy if there is a conflict. I believe it is important to have an ultimate deicision maker.
Another option (preferable) is to have your investor loan the money to your or your company and you can sign a note and mortgage. The investor truely is the bank here. If the investor is just sitting on the cash he/she may be delighted in getting 8-10% return but you could probably go higher if need be.
My only word of caution in using partners is that deals do go wrong and if the investor has all his eggs in one basket (yours) and something goes sour, it is not going to turn out well.
GOOD LUCK
I personally would avoid putting them in ownership of my business entity. A joint venture agreement would do as to the scope of a joint venture on one or two properties.
Their investment would be secured by a first mortgage on the property which you would hopefull purchase at no more that 65% LTV
John Ulmer pays 12% interest to investors that loan him the money and don't require payments during the project. He pays 10% to those that require payments. Points may be negotiated.
I helped set up an investor with a private lender for 12% and a point with them making monthly payments.
[addsig]
Hi -- Looks like you did a lot of work, and spent a lot of $, too. We had a similar problem, and found that the latex-version of Kilz (i.e., Kilz 2 - red & blue labling on white background) just didn't seal as well as the oil-based version of Kilz (the original type - red lable on white background). We still use Kilz 2 on many things, as it is easier to cleanup afterward. But, for really heavy-duty primer/sealer jobs, we use the old Kilz.
We also tried Zinner/Zinter (sp?), and it seem to be a better latex product, but not so much better it's worth the extra $4 to $6/gal vs. the Kilz 2.
As to what to do next, you might just try 'airing it out' for awhile, before you go to re-painting it -- perhaps, in a week or so, both smells may subside. Good luck -- Bob
Maybe running an Aranizer or Ozone machine in there for a while will do the trick after you Kilz it.
We have used them for many units now during re-rents. Running them for a week in a unit will kill all the smells in there for sure.
A small unit we use to put in focus areas.
You can take a look at the Aranizer machines on TCI by going here:
http://www.thecreativeinvestor.com/ProductCat20.html
Latex based Kilz2 is a waste of time except for a very light sheetrock primer. You definitely need to oil based Kilz everything including the trim. After that, get rid of the KIlz smell and the new smoke smell that any of your new carpets or window treatments have absorbed since your first try, by having a restoration cleaning company run an ozone machine in there for several days. Finally, repaint with a high quality latex paint.
Hi Gary,
As silly as this is gonna sound, it does work. I use 'Listerine' in a spray bottle.
that's right, regular everyday 'Listerine' the gold colored one. A auto/aircraft detailer turned me on to it many years back. Sounds goofy I'll admit but it does wonders.
Good Luck
MDH 8-)
As a paint contractor for the last 24 years, I find that pine sol mixed in the paint will get rid of the smell. Also did you seal the vents and the carpet tact strips?
Wow! Thanks, everyone, for all the great ideas.
I'll think I'll try rolling the KILZ (with Pine Sol in it) vs KILZ2 and then repaint. THEN I'll see about renting an ozone machine from a hospital supply place and let it sit in the condo for a week or two.
That's GOT to make a difference!
Thanks again to all.
Gary
I'd consider replacing the fans.
Smoke "clings" to things...your clothes, your hair, the hair inside your nose (making you "smell" smoke all day long).
There's a good chance those fans have been re-circulating smoke for years. The windings hold the smoke odor.
Good idea, Jchandle. Never really thought about that.
Thanx for the tip.
Gary
INdeed, use the oil based Kilz, that is what we use for fire damaged houses and it seems to work. I like Joel believe in ozone machines to kill odor and make the place smell "fresh". They have some good ones on the site and you may be able to rent one as well depending on how much your going to use it.
[addsig]
Quote:
On 2004-08-30 10:56, glieberman wrote:
Wow! Thanks, everyone, for all the great ideas.
I'll think I'll try rolling the KILZ (with Pine Sol in it) vs KILZ2 and then repaint. THEN I'll see about renting an ozone machine from a hospital supply place and let it sit in the condo for a week or two.
That's GOT to make a difference!
Thanks again to all.
Gary
Don't mix the Pine Sol with the KILZ. Mixing a water soluable product with an oil or alkyd resin product can have really bad side effects. A little may not do too much harm, but will retard dry time...however, extending dry time is one thing you don't want to alter (see below). Use too much and the product will clump and become unworkable.
You want to seal out the smell, not mask over it. Either use KILZ as-is, or use a product made by Zinsser called B-I-N. It is neither water nor oil based. Instead, it is a pigmented (matte white) shellac. Clean up with a solvent called denatured alcohol. It flash dries so fast (15 minutes) that the molecules causing the oder have no time to bleed into the coating. Topcoat with any desired finish product (latex or oil) in an hour.
I'm not a paint contractor, but I worked on the other side of the counter for 12 years and the overwhelming consensus I got from the hundreds of contractors I sold products to is that B-I-N is unbeatable. The one drawback is that it is highly flammable, so take all of the standard precautions seriously.
As far as cleaners and products to use..........go ot a janitorial supply house (check yellow pages). There are several products for removing smoke damage and removing smoke odor. You'll find this stuff no where else.
If you didn't clean the air ducts and it is 18 yrs old, then I recommend calling a duct cleaning company. $300-500 for a 2000sf home and this includes giving the air handler a good clean-up as well.
I've re-done a heavy cat odor house and KILZ was good but the last smell left once we had the vents cleaned. A world of difference.
Also, throw a couple bags of charcoal in through-out the house. Cut them open and seal up the house for a weekend or so. The charcoal draws out the odors. I've tried this along with a few other techniques for odors and it can help. It is kind of like a poor man's Ozone Machine.
Good luck!
I'd like to thank all of you who contributed your thoughts to this posting...there are some really great ideas here! I KNEW there was a good reason I joined this group! :-D
As always, any additional thoughts would be welcomed, too.
I'll let you know how it all turns out...we're going to start our work (re-priming, repainting) in the next week or so.
I have seen a product called OdorXit, www.odorxit.com, that clames to work wonders on smells. I have seen it on the Mr Landlord web site. The descripton sound good. I am thinking of trying it. Does anyone have any experience with this product?
JIm
Sure looks like you got a lot of help here. God bless this site. All good suggestions above, I've been in costruction for more than 25 years and I highly recomend the B.I.N. product and the suggestion to clean vents, AC and don't forget the filter. The one thing I did not see mentioned was sealing the floor. If it's a wood floor under the carpet, it soaked up the smell too. If it's conrete, a good clean with a pinesol solution could do the trick. Also, if they left behind any window treatments, even plastic mini blinds, chunk em and get new ones. Hope this helps and good luck, Jeff
I purchased an Ozone Machine for my house. I smoke Cigars in my car to my wifes dismay. She complained so I put the ozone Machine in there for a 90 minutes cycle.
It completely got rid of all the smoke odors.
Clean the vents and position the ozone machine into a return and run the air handler to cycle the ozone throught the vents as well.
BucksBrew,
When you used the ozone generator, did the cigar smoke stay away?? or does it require continued treatment?
Does anyone know?
TIA.
The Ozone Generator eliminates the odor on a molecular level. It kills the cell which causes the odor.
I purchased a small one for my home. Bottom of page with the remote:
http://www.air-zone.com/om6000.html
If I get into rehabbing, this is something I'd buy to rid a house of smoke, mold, fungus, pet odors, etc. It works!
Quote:
On 2004-09-10 19:06, glieberman wrote:
BucksBrew,
When you used the ozone generator, did the cigar smoke stay away?? or does it require continued treatment?
Does anyone know?
TIA.