@John James sounds fun. what are the numbers? Where is the property? Thanks.
@John James what experience in RE do you have?
Finding properties isn't worth the equity because it creates a very big hassle going forward. Anyone can find a deal, but that doesn't mean the other investor should carry you going forward. There can be additional costs down the road that you can't contribute to - and that would defeat the purpose of you being an equity owner because you'd just leach off your partner.
Also, it may cause issues in getting financing. Banks don't like equity owners that can't pay. If the partner is trying to get a loan, you, as an equity owner, would have to pass underwriting. That could kill the deal.
I think we are done here lol
@John James , a good attitude necessarily wont get you far, but you can 100% count on a bad attitude getting you no where.
Networking is a big part of real estate. Make as many friends as you can. Thats how people get involved in great deals.
I would recommend just having a solid conversation with the investor and ask him what hes open to do doing. If you don’t ask you will never know. Taking a finders fee is also not a bad thing. Make the hard cash and then fully 100% own the next deal you find. Cash is king, and thats still true in real estate.
Can you sign on the loan? A commercial loan requires a guarantee by someone with a net worth equal to the loan amount, plus you need to have liquidity after the deal closes of something like 5-10% of the loan amount.
@John James not necessarily! This deal probably wouldn't work for a syndication. It's too small. I honestly would just structure this deal as a JV