- Maui, HI
- Votes |
Hey, I've been working on a strategy to get some more properties under my belt, and wondering what you guys think of it. Am I giving away too much? Not enough? Wasting time?
Basically, my plan is based on three premises:
1.) I don't want to flip with Hard Money (Been there, done that, not real good to sell now)
2.) I want cashflow, at least $100 per unit
3.) I cannot get any more mortgages (Too much property debt, not enough "income", and too many deductions to use my cashflow as income)
So, my idea is not a new one, I'm sure. Basically, I would find (advertise, friends, etc) partners to purchase properties with. I would find the property (single fams, small multifamilies), research loan options, put the deal together, arrange for any repair work (not physically do the labor - been there, done that - too tired), and manage the property from start to finish (3-7 year timeframe, or whenever the market improved). Basically, I would do 100% of the deal. The Partner would do one thing - get a mortgage because they have a down payment and the ability to get the mortgage. Typical sale price would be $50k - $150k, with 25% down.
We would split cashflow down the middle, as well as future profit after the sale. 50/50.
I would also require the partner to come with an extra $3000-$5000 at closing to put into an escrow account for those emergencies (tenants destroy stuff, etc), as a hedge against a ruined partnership the first time something major comes up. It would already be paid for.
Furthermore, would it be appropriate to collect a small ($1000 - $2000) fee, upfront at closing to pay me for the work to do all this? That would get me a bit of income for putting this all together. Is that too tacky to ask for?
Anyways, this ended up being much longer than I hoped, so if you are still reading, thank you! Let me know if you think this is viable, profitable, or whatever. Thanks!