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Money Partners???

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7 posts by 5 users
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Kendra Williams

Real Estate Investor from Bellevue, Nebraska

Mar 31 '10, 01:55 AM
1 vote


Are there any people on BP looking to Partner Up and split some profits??? I am looking at bank owned properties here in Omaha, NE because they're in my backyard and the market here has been relatively stable compared to the coasts. The deals I'm finding from MLS listings have profit potential of $25k-$35k easily.... I also have a 4 unit apartment close to a military installation, so it's easy to rent, nets about $700 per month and there's a 14 unit that nets about $2575 per month. The 4-plex is asking $139k, it's free and clear. The 14-plex is asking $310k, it's not free and clear. I'd love to have some money partners, hard money lenders, private lenders, however good 'ole fashion advice is appreciated as well. I have been learning a lot from the replies I'm getting and reading other threads.


Edited Jun 26 2010, 12:17


Nick J.

Real Estate Investor from Scottsdale, Arizona

Mar 31 '10, 02:39 AM
3 votes


Do you have any cash to put in on the deals yourself? Called 'skin in the game'?

That would be the best chance you have is to say that you've got some cash but need some more etc....

otherwise to ask for cash and have no experience, you're wishing upon a star unfortunately.


Edited Jun 26 2010, 12:17


Jon Holdman Moderator

SFR Investor from Wheat Ridge, Colorado

Mar 31 '10, 03:37 AM
3 votes


Are you trying to do buy and hold or something else? Going into buy and hold with no experience and no money is a recipe for disaster.

Most of what you discuss - hard money, private money, and money partners - are all short term money sources. They can help you go a fix and flip, but the rates they charge won't work for long term holds.

The fourplex is a good deal. Get the owner to sell it to you with minimal down payment (5%?) and owner financing. You'll need that down payment and some cash ($5000, IMHO) as working capital. If you don't have that cash, and your credit isn't good enough to get that loan, you're not yet in a position to start doing buy and holds.

Start with wholesaling, in that case. Get a contract on that fourplex, then find a buyer. Mark the price up to $150K, and pocket $10,000 (less your costs) when they buy it.

Now, when I say its a good deal, I'm referring to the price vs. rent. If there are dozen similar properties for sale for $130K, or even $150K or $160K, then its not much of a deal. If there are dozens of similar units for rent, then its not such a good deal because you'll never fill it up.


Edited Jun 26 2010, 12:17


Jon Holdman, Flying Phoenix LLC


Richard Warren

Real Estate Investor from Las Vegas, Nevada

Mar 31 '10, 03:48 AM
5 votes


Originally posted by Kendra Williams:
The deals I'm finding from MLS listings have profit potential of $25k-$35k easily....

That statement raises a red flag. If you are easily finding them on the MLS, so is everyone else. If they were truly great deals they would be snapped up quickly.

The best deals are rarely found on the MLS. I love your enthusiasm but you may need to take a step back for a short time. Use that break to absolutely devour everything you can here. Determine the course that makes the most sense given your situation. Be sure that your financial house is in order as well.

Good luck!

:cool:


Edited Jun 26 2010, 12:17


Kendra Williams

Real Estate Investor from Bellevue, Nebraska

Mar 31 '10, 08:00 AM


My 'skin in the game' is about $20k Nick...thanks for the advice. ...Jon thanks for your advice as well, I am looking at deals I can turn quickly but have also like the 14 plex which is a long term hold. I may have to wait for a deal like that until after I have some success and more 'skin in the game' :-). I will write an offer with a couple of options including the scenerio you just gave using owner financing on the 4-plex.

Thanks Richard for your advice as well. I have noticed some really great deals being snatched up by the time I get back to my desk

I will continue to devour :))) Also wholesaling would probably work best if I had a buyer's list right...I'm just building that up and have only a small number of contacts, 7 or so....

I will write the offer and hopefully come back with a success story :) in the mean time I will continue to stash away cash and get more educated on whoesaling and other aspects of the business

Happy Investing!!!


Edited Jun 26 2010, 12:17


James Blakeley

Developer from Dallas, Texas

Apr 02 '10, 09:41 PM
1 vote


Kendra,

If you find easy profitable properties, and need to build your buyer list. You can build your buyers list from tracking the "easy." Who bought completed deals. Work hard to find the less obvious deals, and wholesale to the buyers list. Get under contract first, most everyone will go around you if you don't have a contract. Blessings


Edited Jun 26 2010, 12:19


Kendra Williams

Real Estate Investor from Bellevue, Nebraska

Apr 06 '10, 09:18 PM


Thanks James for the advice :) I'm still working on getting IT, the big picture, but most importantly that first deal. ~Blessings your way as well~


Edited Jun 26 2010, 12:23


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