All Forum Posts by: Adam Mittermeier

Hey Everyone,

Recently I have been talking to a relative of mine that has real estate investments in different markets. He seemed very interested in some of the deals that I showed him that I can get in my market for buy and hold.

As far as a partnership, we talked about being 50/50 partners where he would finance and I would be acquisition. He told me now that he wants to think about it because he thinks that if there is a tenant that doesn't pay or damage them that would cut into his profits or could be a washing.

Now I have had great luck with decent tenants and minimal damage, but all buy and hold investors know that it is just going to be part of the equation. So my question to some of you seasoned investors who have been able to have partners who fund some of your deals, what structure seems to be intriguing and works great for you and the partner? The options I am considering is

1. 60/40 partnership

2. 70/30 until investment is made back, then go to 50/50

3. 50/50 and I would fit 75% of the bill for any damage.

Any other ideas that have worked well for you?

@Brian Midden sometimes the seller just wants what they want... It doesn't have to make sense. I came across a deal just recently that the seller is asking too much for their property. I told them I would give them what it appraised for. He did not accept. He is asking 40% more than what the comps are showing its worth. All you can do is give an offer that meets your criteria and move on.

@Joshua Buchanan contact a real estate attorney.

@Luis Cruz patience and consistency is the key. Welcome to the forum!

@Jeremy Williams congratulations! Live and learn, now on to the next one!

@Kenneth White Awesome!! Glad it went well!!

@Bishan Colon welcome to BP!

@Cody Furman if it wasn't in the lease then it's just a lesson learned, and be sure to add it to your agreement for the future.

@Brandon Schlichter love your story! Always motivating to hear a success story! Thanks for sharing!

@Austin Cole decisions, decisions. How much construction would be needed to make it a duplex? How much extra cash flow could you get off a duplex compared to a 5 bed and would it pay for itself quick enough? Are you living off the cash flow? If you aren't, then you may be able to save cash flow for another project.. That is.. If it's easy to rent out a 5 bed Sfh.