Hey all! Just wanted to share a quick success update that resulted, in large part, from my being a guest on the BP Podcast. Like I’m sure every guest has experienced, I received TONS of emails & PM’s after the show. I received many thank you and appreciation emails, questions etc. I also received quite a few inquiries from people looking to partner up on deals.
I was a bit overwhelmed and surprised by the amount of these inquiries and decided to take a stab at a new type of business model to see how it worked out. I started 5 new partnerships with different investors (4 as cash/credit partners, 1 as a credit partner) to make purchases together in the market I’m already investing in, Milwaukee.
4 of my new partners have been actively educating themselves about REI, but just hadn't pulled the trigger yet. They had yet to take the leap and make their first deal for numerous reasons. I think one of the biggest benefits to them in this arrangement was to have a guiding hand throughout the whole process (aside from the great buy & hold deals we picked up :) ). They've been working closely with my team and I on every decision and have been involved/learning in the whole process. It's been awesome!
As of today, of the 5 partnerships:
- 3 have closed, completed the rehab and have tenants in the properties already.
- 1 closed on a property in December that was already tenant-occupied. We've collected the January rent and things are looking good!
- 1 just closed yesterday and the light rehab is beginning already. We aim to have it rented out either Mid-February or by March 1st.
** All of these deals met our buying criteria. One fell short of our minimum ROI/CoCr of 20% though. It ended up requiring more rehab than initially expected AND we were only able to secure a 10 year mortgage instead of a 30 year mortgage (reducing cash flow).
** All partners have expressed they want to move on a second deal. Some now and some soon when the timing is right for them.
- Helping other people take their baby steps into real estate investing, and get a good return on their money, is such a great feeling.
- I underestimated the amount of time/energy it would take to guide 4 or 5 people, somewhat simultaneously through the whole process (financing, acquisition, education, bookkeeping, LLC, etc.). Now that the groundwork is laid, #2 for everyone should be much smoother!
- (**Not the tenant listed above) Be wary of a holdover tenant whose license plate reads something like “MSQUEEN” :)
- My business partner and team on the ground is awesome and none of this would be happening without their help.Thanks @Dawn Anastasi & @Jenkins Ramon
It feels good to be able to provide value for people based on my experiences and things I've learned here on the site. I highly suggest trying to get on the podcast to share your story! Great things can happen for you and the people you come in contact with because of the show. Thanks @Brandon Turner and @Joshua Dorkin !
@Mehran K. the other day and she was telling me what a great partnership you guys have. I am starting my first partnership and hope to have half the success you guys have had
what a fantastic story! Im jazzed up just from reading it. Way to build your business while doing something completely epic. Thanks so much for sharing!
@Mehran K. - what can be said? Congratulations!
From here, the trick is to be able to tell stepping stones from stumbling blocks :)
Oh, I loved "MSQUEEN" and her red mohawk! Gotta love having stories like this you can look back on; it makes life interesting. :)
Mehran and Dawn : Thank you for the opportunities.
Jenkins Ramon, JMWPS Ventures, LLC | [email protected]
Whoop whoop! Love it!
Major kudos and a huge pat on the back Mehran! You are an example of taking action done right and you're already giving back. Well done man, very well done.
@Brie Schmidt Yeah Dawn was telling me about you two meeting up, that's awesome! I wish that you are successful in your new partnership as well.
@Tony Cavalli NP, glad I can get you all jazzed up lol!
@Ben Leybovich The more I learn from more seasoned investors like you, the easier it is to spot and avoid the stumbling blocks! Thanks Ben
@Dawn Anastasi Darn, I never got to see the mohawk, you have all the fun :)
@Jenkins Ramon Well deserved based on performance!
@Sean Moen Thanks so much for the kind words. The past few months have been a bit hectic with my full-time job and everything else, but it's been worth it!
Proud to be a part of it Mehran. IMO, most meaningful takeaway is that everyone is benefiting from this process. Kudos to all of you and your hard and honest work. I look forward to the deals to come.
Definitely @Bryce Till !
That's awesome! Congrats @Mehran K.
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