NYC area - New Investor

NYC area - New Investor

Flipper · New York, NY · Member since 2017 · 2 posts · 0 votes

First post here - so appreciate everyones time in advance. 

I am just beginning my real estate investing career. I have read several books in preparation for this journey, but I am finally on the hunt and ready to get the ball rolling. 

I am lucky enough to be backed by 5 private investors who collectively will provide up to $2m to get me started, and have a pretty high appetite for risk (so I can use leverage). I have a 15-20k marketing budget. Need to put the money to work in the next 3 months.

I am open to wholesaling, fix and flips, and buy/hold on multi families. 

My questions are as follows:  What would be the best way to structure my agreement with the investors? They are interested in being equity partners as opposed to lenders, but would still require their investment be secured by the underlying properties. Would any good real estate attorney be able to structure this agreement and provide the proper guidance? I came to bigger pockets before even calling an attorney...

Has anyone tried direct marketing in the Brooklyn/Staten Island area? Does it work in such a competitive market? 

Also interested in networking with realtors, wholesalers, RE lawyers etc. in the area. 

Thanks!!

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  • Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Ahmed Gheith:

    First post here - so appreciate everyones time in advance. 

    I am just beginning my real estate investing career. I have read several books in preparation for this journey, but I am finally on the hunt and ready to get the ball rolling. 

    I am lucky enough to be backed by 5 private investors who collectively will provide up to $2m to get me started, and have a pretty high appetite for risk (so I can use leverage). I have a 15-20k marketing budget. Need to put the money to work in the next 3 months.

    I am open to wholesaling, fix and flips, and buy/hold on multi families. 

    My questions are as follows:  What would be the best way to structure my agreement with the investors? They are interested in being equity partners as opposed to lenders, but would still require their investment be secured by the underlying properties. Would any good real estate attorney be able to structure this agreement and provide the proper guidance? I came to bigger pockets before even calling an attorney...

    Has anyone tried direct marketing in the Brooklyn/Staten Island area? Does it work in such a competitive market? 

    Also interested in networking with realtors, wholesalers, RE lawyers etc. in the area. 

    Thanks!!

    Hey Ahmed, you've got quite the opportunity, and quite the task to go along with it! 

    Try reaching out to @Edward Schenkel about how you can structure it to protect everyone's interests. He does real estate law in CT and New York. 

    I haven't done any direct marketing in your areas, but I do work primarily with out of state buyers - including a few from NY - as a realtor and property manager. If you have any questions about the possibilities in Connecticut, just give me a shout.

    Good success, and welcome to BP!

    -Filipe

  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    8y

    @Ahmed Gheith

    I am not an attorney but I don't see why they want their investment to be secured by the underlying property. They ultimately own the underlying property indirectly through the investment vehicle
    A, B, C, D, E form Partnership ABCDE. Partnership ABCDE buys Property 123 street. Partners A, B, C, D, E indirectly own Property 123 Street.

    If you are interested in networking with realtors, wholesalers and RE lawyers - try to attend local real estate networking events in NYC.
    You can find them through the events section of biggerpockets or on meetup.com

    https://www.biggerpockets.com/forums/521-events-an...

    the link above will showcase 10 networking events in the area that are happening soon.

    You may also want to speak to a portfolio/commercial lender. even though you have partners with alot of cash - some lenders might be hesitant in lending because you don't have a track record(or at least it doesn't appear so).

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