I am new and I have no idea where to start. I am willing to do all the work if an experienced investor in Houston is willing to take me through the steps of closing my first deal. I am willing to split the profit 60/40 (you/me). I am seeking to use other people's money.
If you are brand new, most investors will not be quick to fund an entire deal for you. Everyone likes a little skin in the game.
I would focus your early stage funding with friends and family, I would also add another 10% to the stake of the investor in question. 60/40 is a good term for someone with a lot of experience, but you're looking to get started. In the worst case, I would even do an 80/20 deal if it meant raising vs. not raising $.
Even the best people I know got started within their own friend and family networks. It can be difficult, but it's about the only way to build credibility without your own funds.
I am working with some newbies I met on BP and other REI venues. I offered a 50 50 split in one scenario (it closed and the reno's are moving along fine) and I am working on putting an equal three way split on another deal. Sure we are all bringing a little skin to the game (again we are saving 50% or 66% down payment for each of us as apposed if we did it separately) and we also bring different skills and points of view to help suppress failure through our agreed upon business plan.
Dividing the profits two or three ways will provide enough reward for me as I will end up doing a little less work than if by myself (and them also) plus I get to see the world from a different set of eyes and I think that is a good thing. (Sorry I am not greedy). Also I am hopefully building long term relationships to possibly fund other deals in the future and or just have a friend in case. I do not choose to do deals with those exactly like me but those that are hungry and show a real zest for learning, doing and openly sharing s a must. They need to see the forest for the trees. There are thousands of untapped opportunities in R/E everday. More to go around than I could ever imagine so in my mind again I enjoy friendships that are easy......
that's awesome I would love to be able to gave that here.
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