foreign partner wants US bargains 7 figure budget

15 Replies

I've dibbled and dabbled in wholesaling, buy and hold, and vacation rentals. I've done  a little less than okay lol.  I have a foreign friend who decided to appoint himself as my partner. He wants me to locate bargains for him in South florida. He has a 7 figure budget.  Its one thing to invest for yourself but its quite another to invest for someone else.    Where do I start?    

Hey Nigel, for starters, search the events for the next south florida coffee hang for investors! Find out what sort of return he is seeking and what sort of properties he prefers. Lots of ways to go and ... of course, specify what your part of the partnership will be. :-) 

CONGRATULATE yourself on finding a partner! You can do this! 

Probably stating your a novice investor with a bad track record, in charge of millions of another new investors money to spend in a public forum, is a very poor place to start

sorry but NO!

You wont be doing any value investing in south fl. Why would there be bargains, if everything sells for full price in a very short time.

Now if your financier insists on buying property, fully aware we are late in the cycle, and wants to gamble on appreciation in a highly cyclical sector then fine.

A multifamily with no mortgage imho would be a much better proposition for you both as it will throw off cash and survive a change in conditions easily (without a mortgage)

It wont be a bargain, but relatively safe

Originally posted by @Nigel Williams :

I've dibbled and dabbled in wholesaling, buy and hold, and vacation rentals. I've done  a little less than okay lol.  I have a foreign friend who decided to appoint himself as my partner. He wants me to locate bargains for him in South florida. He has a 7 figure budget.  Its one thing to invest for yourself but its quite another to invest for someone else.    Where do I start?    

 Aside from the issues others have identified, the very first thing to do is get your agreement settled with your partner.  What exactly are you agreeing to do and in return for what? What are his duties and expectations.  When partnerships start, most people assume it’s going to be great and don’t plan for disagreements.  But they inevitably come up.  The question is not if your partnership will end but when.  Even if it’s amazingly successful and smooth, one of you will retire or die.  What  then?  You need to get that settled now, before you do any actual business together.  

One of the big problems that BP reveals is that most amateur investors seem to believe that real estate is not a business.  But it is business, the successful people treat it as a business, and if you want to be successful you must too.  

Originally posted by @Nigel Williams :

I've dibbled and dabbled in wholesaling, buy and hold, and vacation rentals. I've done  a little less than okay lol.  I have a foreign friend who decided to appoint himself as my partner. He wants me to locate bargains for him in South florida. He has a 7 figure budget.  Its one thing to invest for yourself but its quite another to invest for someone else.    Where do I start?    

 What kind of opportunities are you looking at for your friend and what is the criteria?

@Jay Helms He would prefer multi family with in his words at least 10 percent cap. I told him youre not going to find that in south florida unless its a bad neighborhood.  I've started to delve off further north like tampa, jacksonville, orlando, and west like naples cape coral or fort myers.  Those areas seem to be more reasonable.  Ive found that there are alot of multifamily that are  1bed 1 bath. I'm trying to stay away from those as I would when searching for sfh.    I mentioned fixing and flipping sfh to him and he said "as you wish" lol so thats on the table too.  Last but not least he very interested in flipping land or buying and holding land.  I have absolutely no experience in that.  All I know is that were running out of it so the laws of supply and demand will soon take effect.

wasn't there a thread similar to this (but way higher dollar value) and then it came about it was a scam... ?

@Nigel Williams I don't mean to point out the turd in the punch bowl, but this sounds like a scam.

Why would someone with a 7-figure budget entrust someone with your very limited track record?  How does that make any sense?

If you sign anything having to do with this deal, be sure you have a good attorney review it.

@Steve B. I never said I had a bad track record I just dont have the experience of a seasoned investor like yourself.  I bought my first house for 92k in ft lauderdale. I registered with a site that claimed to have preforeclosure listings.  They told me what to put on the postcards to which I complied and then sent them out to the people on their listings.  It wasnt long before i got a call and to make a long story short i ended up acquiring the house for the price i mentioned above.  That house has been doing pretty good as a vacation rental.  I acquired my second house the same way right around the corner from the first one a few years later and that one is also a vacation rental.  They both have been long terms rentals in the past but i found that vr is better and the upkeep is better.  I did a whole sale deal in Miami Shores in 2014, so thats what I meant when i said dibble and dabble.  These results might be great to some but to me its a little less than ok only because I'm realizing i could have done so much more.  I am a full time law enforcement officer but was hurt recently so I'm reevaluating my option and real estate is one of them.

@Charlie MacPherson lol I'm not going to get into the back story of how all this formed right now, but I have nothing to scam. In fact he gave/loaned me funds to accomplish a major rehab on one of my vacation rentals. I have made two offers on his behalf with proof of funds.  one offer was for 1 million and the other was for 700k.  They didnt accept of course saying it was too low but hey better safe that sorry.  I do have a real estate attorney that I used when I dibble and dabbled and I spoke with him recently about this and he said the only difference between 700 and 70 is the zeros.  Approach the deal the same you did with the first.  I'm still apprehensive though.  Its definitely not a scam even if he gets a deal because of me and I get nothing he helped me with my VR rehab.  He owes me nothing. 

@Charlie MacPherson lol I'm not going to get into the back story of how all this formed right now, but I have nothing to scam. In fact he gave/loaned me funds to accomplish a major rehab on one of my vacation rentals. I have made two offers on his behalf with proof of funds.  one offer was for 1 million and the other was for 700k.  They didnt accept of course saying it was too low but hey better safe that sorry.  I do have a real estate attorney that I used when I dibble and dabbled and I spoke with him recently about this and he said the only difference between 700 and 70 is the zeros.  Approach the deal the same you did with the first.  I'm still apprehensive though.  Its definitely not a scam even if he gets a deal because of me and I get nothing he helped me with my VR rehab.  He owes me nothing. 

@Charlie MacPherson ps charlie i'm not a licensed salesman but if theres one thing I've learned over the years is closed mouths dont get fed. To make a long story short I simply asked for the sale and boom a partnership was born.

Originally posted by @Nigel Williams :

@Jay Helms He would prefer multi family with in his words at least 10 percent cap. I told him youre not going to find that in south florida unless its a bad neighborhood.  I've started to delve off further north like tampa, jacksonville, orlando, and west like naples cape coral or fort myers.  Those areas seem to be more reasonable.  Ive found that there are alot of multifamily that are  1bed 1 bath. I'm trying to stay away from those as I would when searching for sfh.    I mentioned fixing and flipping sfh to him and he said "as you wish" lol so thats on the table too.  Last but not least he very interested in flipping land or buying and holding land.  I have absolutely no experience in that.  All I know is that were running out of it so the laws of supply and demand will soon take effect.

 Agreed on the 10 cap. Hard to find unless it’s a bad neighborhood. Let me know how I can help you. 

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