All Forum Posts by: Alec Perron

Hey BP community,

I’m currently renting a condo that my landlord has decided he no longer wants to keep. I’m interested in buying it, but I don’t plan to live here long term. Instead, I’m trying to figure out the smartest way to acquire it as an investment property with minimal upfront costs.

The owner is open to selling, but I’d like to structure something that helps both of us without using a traditional mortgage or rent-to-own setup.

Here’s what I’m thinking:

• Could this be a good candidate for seller financing, subject-to, or another creative structure?
• How can I position this as a win-win to the seller while also giving me flexibility to either rent it out or resell it later?
• What should I watch out for legally or financially when trying to structure a deal like this?

Any advice or examples of similar deals would really help. I’m trying to take action on my first investment deal and want to do it right.

Thanks in advance!

—Alec

Hey BiggerPockets community,

I’m in the early stages of building a real estate investment partnership with a silent investor. He’s willing to put up the capital, and in return he’s looking for a 10% preferred return annually on his investment. Beyond that, he’s open to working with me on additional deals if this first one goes well.

Here’s the setup:

• He’s 100% funding the acquisition and rehab.
• I’m the active partner: sourcing the deals, managing any contractors/tenants, overseeing everything.
• His only ask is that he gets at least a 10% return on his money.
• I want to make sure I don’t break his trust—I'm grateful for the opportunity and I take it seriously.
• At the same time, I want to structure it so we both make good money and ideally roll profits into future deals for long-term growth that sets us/our families up for success. 

Where I need advice:

1. What’s the best way to structure this to ensure he gets his 10% preferred return and there’s still meaningful profit left for both of us?
2. Should we include some kind of profit split after the preferred return? If so, what’s a fair range?
3. What do you think the best strategy would be for the 1st deal? (Michigan market; Lansing, Grand Rapids, Detroit, Upper Peninsula, etc) 
4. After the 1st; do you find it best to stick with one approach for a while or diversify right away? 

I’m committed to doing this right—for him, for me, and for the long term. Any experience, sample structures, starting points or warnings you can share would really help.

Thanks in advance!

A friend of my, who works closely with a lot of real estate agents in Michigan, told me about this 3 bedroom 1 bath house being put up for sale for $107,500

It’s in a great neighborhood, school district, low crime area. The neighboring homes with very similar specs, have sold for $160,000-$170,000 or rented out for $1,200-$1,500. 

It’s technically move in ready, but needs a lot of updating inside (floors, kitchen, added appliances), as well as a new roof, windows, doors, siding. I’ve always done construction and currently sell in the industry; so I’m very okay with the sweat equity it’ll take. 
The owner is willing to do a land contract, assuming he knows it needs about $40,000-$50,000 of work done on it. 
I personally don’t have the funds for a down payment or repair costs, so I’ve talked with a potential investor who is very interested in backing me.. IF IT MAKES SENSE of course. 
Being new to this world, Im struggling with the best options to lead with to make it make sense for all parties involved. 
From what the real estate agent says; he doesn’t seem to be interested in going much lower… so going $147,500 all in to make hopefully $10,000.. doesn’t seem worth it, even if I held the property to rent.. it doesn’t leave me much wiggle room for potential market drops in home value or renting it out, if I took that option. 
I would be beyond grateful for some creative strategies  to make this all make sense.. more so I feel like it comes down to figuring out a way for it to appeal to the seller.

Thank you in advance BP family! 

Hello BP family. My name is Alec. I’ve been listening to BP on and off for a couple years now.. I’ve always known I’d do real estate investing “some day”! It wasn’t until the last few months that I realized I would say that forever if I kept waiting for the stars to align.
Enticed by a few of the BP books, along with many others, I’ve decided to commit to diving in. 
I’m a military veteran, father to two awesome boys that I have 50/50, and I’ve been working in the home improvement sales/marketing world for the last 5 years, with my builders license hopefully coming into effect this year. 

I currently live just outside of Lansing, Michigan but my work has me traveling all around the state. 

With that being said, I would be beyond grateful/enthusiastic about any and all experience opportunities or guidance in making some local connections to best start propelling myself, and potential future partners, for many years to come! 

Thanks in advance! God bless! 

@Couryn Beleck

Hey Couryn!

I also have yet to come into contact with any wholesalers, unfortunately. I’ve only lived down here for just about a year and have mostly been focusing on my career. It wasn’t until now that I’m really trying to expand my network and go forward with RE.

I would be more than happy to connect with you though! Adding a person, like yourself, to my network is never a bad thing! We might possibly be able to pick each other’s brains and resources as we both take these initial steps in the SE area :)

Thank you for reaching out!

-Alec

My name is Alec. I’m an army veteran with an education in business and robotics.

I’ve had a fire inside me for several years with a passion for real estate. I know that’s what I’ll do for financial security as my life goes on.

Right now I’m at the beginning step, I’ve done the 3+ years of research and podcasting and over planning.. but never took the leap. I’m very analytical. But I still feel very lost because I’m more of a hands on learner.

With little money to dive into this with, I’m hoping to get into wholesaling to really start off my learning curve and build up funds to pursue more passive income later on.

This kind of post is way out of my realm, but I’m fairly new to the South East side of Michigan, and was hoping to make some connection and possibly find someone willing to let me help them out with their existing wholesaling business, to get that experience I need to really have a strong foundation in place before I send myself off.

Of course I understand I don’t know what I don’t know.. so if anyone has something else they think might work better for my situation, I’ll appreciate any and all advice given.

Thank you BP team.