real estate investment in detroit for reia detroit by leor barak

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Real Estate Investment In Detroit for REIA Detroit by Leor Barak. THANK YOU for being part of positive change in Detroit!. CONTACT INFORMATION. Leor Barak, Esq., M.B.A. Detroit Solutions 313-909-9340 leoribarak@gmail.com. Areas of Expertise (1). Real Estate Law - PowerPoint PPT Presentation

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  • Real Estate Investment In Detroitfor REIA Detroit by Leor Barak

    THANK YOU for being part of positive change in Detroit!

  • Leor Barak, Esq., M.B.A.Detroit Solutions313-909-9340leoribarak@gmail.com

    CONTACT INFORMATION

  • Real Estate Law* Buying, Selling, Leasing* Land Use/ Zoning* Property Tax Appeals

    Areas of Expertise (1)

  • Business Law* Forming LLCs* Forming Nonprofits* Drafting Contracts

    Areas of Expertise (2)

  • THE AGENDAI. IntroductionsII. Detroit LandscapeIII. Acquiring PropertyIV. Ownership StructuresV. Due DiligenceVI. ContractorsVII. Asset Managers and Property ManagersVII. Question and Answer session

  • I. Introductions

    Who I am Problem solver, troubleshooter, boots on the groundPurpose of this presentationI want to hear from you!

  • II. Detroit Landscape

    More positive press Better political leadership More attractiveness More investment

  • III. Acquiring Property (1)Finding Property

    Online (zillow, auction.com, etc)Governmental entityBroker/ agentWord of mouth

  • III. Acquiring Property (2)Varied Assets and Entry Methods

    Structure type (single family, multi, commercial) Long-term vs. short-termEntry methods (Development, Build Up, Turnkey)

  • III. Acquiring Property (3)Purchase Agreement

    Critical DocumentEnsure due diligence periodEnsure proper contingencies

  • IV. Ownership Structures (1)In a nutshell Sole Proprietorships Partnerships LLCs S Corporations & C Corporations Nonprofit Corporations L3Cs Community owned

  • IV. Ownership Structures (2)Limited Liability Companies (LLCs)Created in early 1990sFormally created and filed with StateHybrid between partnership & corporation Taxation like partnership (default) Liability like corporation

  • IV. Ownership Structures (3)Limited Liability Companies (LLCs)FilingLicensing and Regulatory Affairs (LARA)Limited liabilityFlexibilitySingle-member vs. multi-memberOperating Agreement

  • IV. Ownership Structures (4)Nonprofit Corporations

    File special corporate form with LARANonprofit Corporation vs. 501(c)(3)Also protects liability, but provisions needed

  • IV. Ownership Structures (4)Nonprofit CorporationsAdvantages: May apply for tax-exemption Good PR Broad support More accountabilityBut...moves slower

  • IV. Ownership Structures (5)Alternative ModelsL3C Low Profit Limited Liability Company- Hybrid of LLC & Nonprofit- Created to encourage foundations to make gifts and loans to for-profit- To be have a tangible effect, the Internal Revenue Code (IRC) must be revisedCommunity Ownership Model

  • V. Due DiligenceGeneralTitleSurveyPhysical Inspection (including environmental)Financial Inspection

  • V. Due DiligenceSample Considerations

    InspectorsRent & DepositsInsuranceUtilities

  • VI. ContractorsGeneralOften very difficult to findOften difficult to manageGC model vs. Project manager modelWord of mouth recommendations are best

  • VII. Asset Managers & Property ManagersGeneralOne or both may be necessary Underestimated by small investorsContract as percentage of gross revenue (often 10%)Should be tied to performance

  • Let 'em roll....

    VIII. QUESTION & ANSWER SESSION

  • AND THANK YOU!!!

    CONCLUDING THOUGHTS

  • Leor Barak, Esq., M.B.A.Detroit Solutions313-909-9340leoribarak@gmail.com

    CONTACT INFORMATION