I am sure there is a company that will invest your money for you in Real Estate right? Let me tell you what I was thinking and see if someone might have some advise for me?
I have a couple of condos paid off and then one with owner financing with about 9.5 years and $28k left on the mortgage. I own 1.45 acres vacant land free and clear behind WHCS in Winter Haven, FL. Well, all the properties are in W.H. Later this month I will close with cash on a 3-2 concrete block house that needs some rehabbing. It needs about $30k to $40k to rehab it.
Due to the time left before closing, 7/15/16, I will probably just pay cash for the house and try to finance the rehab or do the rehabbing in projects. This house has a rental unit out back as well, so the property should cash flow well. I could rent them both out now, but they could use some updating and I would like to do it while they are empty.
But my question would be this. Is there a company or companies out there that handles Real Estate Investing for you? That can say, refi your properties and make investments on your behalf? I am sure there is, but I don't know anything about them or where to find them? I am sure there is a nice fee or percentage to do it. Has anyone heard or dealt with a company like this?
If someone has some advise on this? I would appreciate it. I am sure there are far smarter people than me that can put my properties to work for me in a better way or help me upgrade or buy more and bring in more money. I would certainly listen to what someone in this field had to say and see if it is what I am after.
Thank you in advance for any input you may have on this subject. Have a great day!!!
Wouldn't that be wholesaling?
That is, get on a wholesaler's buyers list being very specific about your investment criteria. Then, just let the wholesaler "fill your order(s)" taking their fee at closing.
David J Dachtera
No @David Dachtera , more like an investment company that handles my portfolio. I tell them my goals and they make it happen for a price.
Something like, you have X amount of equity in these properties, they can be refi'ed and the money used to do X with, and that will bring in more money or whatever? So I can make sure I am doing the best and most I can with the properties I have.
As I am not that good at asking for money. So they would be in charge of that kind of stuff. I would just approve it.
Nope don't think so,,,, get a JV partner that handles that end of the business for a stake in the equity.
or invest in Reits
I'm trying to fit that into the typical REI scenario, though it sounds like you're looking for a "Fidelity Investments" of real estate. That is, your (presumably self-directed) accounts are all invested in real estate by someone other than you but who is under your direction.
Not sure how that would be licensed (by the SEC?). Interesting thought, though.
Would not a REIT suit your needs better than inventing a new type of wheel?
Thanks @Jay Hinrichs . I thought for sure there are companies that do this? I thought of this because of what you said yesterday. About how to refi the condo's and so on and the other stuff. Someone that has the skills to pay the bills. And is kinder to people than I may be sometimes.
And here I was complaining about giving up a little cash for someone to lend me some money, to make me more money, but yet ready to give it away for someone to take my properties and make more for me. And that cost way more. LOL If I do it myself it will save a lot. I have a nephew fresh out of college two weeks ago and he wants to get his Real Estate License. I told him I would pay for the course. He is pretty bright and can learn this just as I am. But faster and the right way.
So maybe I let him get his license and give him something to work with. It is not a whole lot, but people have taken way less than I own and turned it into millions. Not over night of course. Well I am sure someone has. But he is just starting out and I could use a little help handling it. His credit is fresh. Not much there but it is started. So this could help him.
I can get cranky these days. It is a part of my disability. Sorry. Where my nephew is calm, bright, has good manors and is just a polite young man. You know, Yes Sir, No Sir and all that. Doors can open for him. I am good at shutting them. LOL A little joking around there.
I might can help him and get helped at the same time. Plus he can manage the properties down the road. I use a property management company now.
As always Jay, thank you for your comments!!! Keep up the great work!
See @David Dachtera , you got it this time. Great answers. Thank you. I think that sounded right. And the 2nd part, about the REIT was a pretty good suggestion. As that is what I was talking about, but I would like to be involved in helping pick the properties. Then again, I think they invest all over the country? Or maybe the world? I will have to look into that but that was a great suggestion. KUDOS and Thank you.
@David McBrayer - I might have a couple of ideas for you, depending on your goals. I will send you a PM and we can have more detailed discussions.
Perhaps some hybrid idea where you work with a wholesaler like @Brandon M. to acquire properties, turn them over to a property manager for everyday operations, and - when you see a need to let go of property, have an agent on your team who can handle the details ... ?
I think your overall idea has merit in the market at-large, I'm just thinking how would it need to be arranged thru the SEC.
A brokerage who deals in SDRPs invested in real property rather than in "markers" in The Wall Street Casino! I like the idea. Might need someone rather more astute than me to bring it together.
Thanks @Brandon M. , I just know there has to be someone. LOL I do think it is more along the lines of what David had said. A REIT. I am exploring the different ideas. But I like the thought of picking them and letting someone else to the paperwork. The house I am about to close on would have been a nice wholesale house if I did that. I should try it one time right? LOL Thank you for your comment Brandon.
Well I don't want to do anything wrong or get in trouble with the SEC by no means. I may just start an LLC and let the nephew be the President or VP and let him learn how to handle it. As it may be his or his dad's down the road. He will be fresh off getting his license and hungry. And he will be scouring deals and trying to make one happen. It would be nice to be a part of the start of his career. And hopefully we can act on some of those deals and make some money? But I do like the sound of a REIT.
There are more ways to do this than I can count (i.e. have someone basically manage your portfolio for you). However, all come down the same problem which is the same problem in any market, how much can you trust that person and how much is their interest aligned with yours. If you can answer those questions positively its not hard to find, if not well it prob won't end well. Same applies to any endeavor though from running a business (see the agency problem) to investing in stocks (financial advisors, mutual funds etc.). Like any of those someone else will do the work prob for less than you think ur time and sanity is worth just a matter of if they will do it well.
Thank you for the comment @Charles Worth . I greatly appreciate the input!!! Trust is always a factor. That is why using my nephew might not be a bad idea.
He can learn what I like and he can find them. I am open to new things. And I am sure he will be able to teach me things. I am counting on it. LOL And having him with his license will save us some money. Another Jay tip.
His father owns a 2200 sq ft commercial building with an office that he is not really doing anything with. That could be his office. Or ours. I will pop in or sit in on meetings, but it will be his to run. Unless he messes up real bad, but he is a great young man. He kind of has a lot of tools to help him get started on his career. I would rather work for myself than for someone else. If I could pay the bills.
@David McBrayer If you go REIT you lose the control of selecting properties. If you want the least involvement, you should look turnkey, but then you lose equity. If you want to pick the property and have a chance at equity you need to have your wholesalers, rehabbers, finances, etc.
If you bring on a partner, you can provide the funding and provide inputs into the deals. They can manage the rest of the process. I would make certain that all responsibilities are laid out clearly, including termination of the partnership and then go from there. In this situation there is a high degree of trust needed.
Finally, you may be better off as a lender. You still choose what deals to lend (or not) on, but other than that you are hands off.
Best of luck and happy investing!
Awesome advise @Bryan O. . I greatly appreciate the input and comments. I wish you the best of luck and may your next deal be one of your best ever. Or at least let it make you some money.
Hi @David McBrayer , if you're an accredited investor you might consider investment into DSTs. They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse.
If that interests you, please let me know if I can help. Leslie
Thank you for the info @Leslie Pappas , I don't think I am quite there yet. But it is something to research. Again, thanks for the comment and info!!!
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