Apartment Building Deals!!

Apartment Building Deals!!

Realtor · Birmingham, AL · Member since 2018 · 14 posts · 4 votes

Hey guys,

Long story short, I'm currently partnering with a friend of mine who has access to money but not a lot of time. I, on the other hand, have access to a lot of time but not enough money.

I told him I wanted to invest in real estate somehow, and he talked me into finding apartment buildings for sale that produced X amount of cash flow and obviously him and a few other associates would fund it.

Fast forward like 3 months and I have pages and pages of potential deals that cash flow anywhere between $8k-$11k per month and I keep telling the broker, "Let me talk with my partner because I really like this deal." However, my partner is not as punctual as I'd like for him to be. I'll e-mail him a copy of the analysis I've done for each one I think would provide the most cash flow, even during the low months and he'll get back to me on it. And I wait days, sometimes a week and I'll ask if he's looked at any of them yet and he'll tell me he's been swamped with work. I've gone myself to look at some of these properties, talk with these brokers face-to-face and am ready to pull the trigger at any given moment once I get the green light from my partner who's funding the deal. But it just seems like I'm sitting and waiting rather than getting this stuff done.

Any tips? Should I remain patient or should I have concern that this process is taking way too long and maybe try to start finding other people to partner with?

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Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
7y

If you find a great deal, getting the money will not be the problem you may think it is.

See this reply in the discussion

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  • Specialist · Washington, DC · Member since 2019 · 177 posts · 150 votes
    7y

    @Ethan Morgan

    It sounds a bit like your partner is dragging his feet. He may not be all hes cracked up to be. Can you verify that he has the capital to back you? Other than the work excuse what do you think his hold up is? If youve put deal after deal in front of him and he still hasn't jumped in the least than he may have lead you on, especially if he hasnt been to any of the tours with you.

    What do you think is going on? Has he given you any real numbers as far as the capital that he and his friends have to invest?

    There is a little more to it as well, if the broker in the equation gets the sense that his time would be better spent else where, he is going to stop feeding you deals.

    Tell us a little more about whats going on with your money man.

  • Realtor · Birmingham, AL · Member since 2018 · 14 posts · 4 votes
    7y

    @Chase McArthur Well I know him personally, I didn't find him on any kind of networking portal. He just passed his bar exam last year and for the past few months is working in a law firm trying to build clientele. So I know WHY he's busy but at the same time, I know for a fact I'm a little more motivated at getting this ball rolling at this moment in time.

    He's given me a max number to run with and has said he's currently working on the financing side of things. He's also told me 5-6 more lawyers he knows are willing to contribute to this also.

    We haven't even sat down and talked "terms" yet but right now, it seems like all the work I'm currently doing is really going nowhere. I will say, it's given me experience, which I'm grateful for but I'm also wanting to make this happen. I want to earn some credibility and start making this a lifestyle.

  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    7y

    Keep looking for others to partner with and keep the door open with your friend. He may be "too busy" now, to think about your real estate deals. If you have a network of other investors available, then you are able to offer on the properties you are buying with confidence. Send them to your friend first with a decision date. 

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    7y

    @Ethan Morgan sounds to me like your friend may have been overstating his enthusiasm, or access to money, or both. I'd find someone else to partner up with. On the positive side, a lawyer is the last person I'd want to partner with anyway.

  • Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    7y

    If you find a great deal, getting the money will not be the problem you may think it is.

  • Rental Property Investor · West Palm Beach, FL · Member since 2017 · 262 posts · 136 votes
    7y

    I agree that you should get other potential partners lined up. If you come across a great deal you will want to have a couple different options to offer it to. This will also create a sense of urgency with your lawyer friend as he will know you don't need to wait around for him to commit. Perhaps you will close on another deal with a different partner first and then that will open up the door more. 

  • Realtor · Birmingham, AL · Member since 2018 · 14 posts · 4 votes
    7y

    @Todd Dexheimer I appreciate your input, Todd! By the way, I loved your appearance on the BP podcast. So much substance and good advice. Thanks!

  • Realtor · Birmingham, AL · Member since 2018 · 14 posts · 4 votes
    7y

    @Bjorn Ahlblad Thank you! By the way, why wouldn't you partner with a lawyer? Just out of curiosity.

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    7y

    @Ethan Morgan if things go sideways, and you need to plan for that, a lawyer has endless access to lawyering by using himself and you will go broke if he did not drive you crazy first! Getting him to agree to a contract prepared-even in part-by your lawyer will be onerous if it happens at all. 

  • Developer · Magnolia, DE · Member since 2017 · 75 posts · 28 votes
    7y

    @Ethan Morgan, After you have been doing this for a long time you will find out that most so called investors are only talkers. You should always keep looking for the real investors and looking for deals that will bring investors to the table because they are super lucrative. Best of luck. Also note that this “friend” of yours has no respect for your time and neither do you as you keep sending him more deals when he doesn’t even give you the courtesy of getting back to you. If you don’t think you are equally providing opportunities to him, then he will always treat you like he is doing you a favor.

  • Rental Property Investor · Mill Creek, WA · Member since 2017 · 35 posts · 10 votes
    7y

    @Ethan Morgan.

    You are working ondeals. Let ten potential partners have a chance to look at it. You might have an answer yes. If not the deal wasn’t so good!

  • Specialist · San Antonio, TX · Member since 2015 · 909 posts · 297 votes
    7y

    find a better partner,, do the deal without him then that should make him move a little faster

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