All Forum Posts by: Ben Watkins

Quote from @Matt Mclelland:

But I guess to answer your question more specifically, I am pretty familiar with Amplify My Business lol. 

@Matt Mclelland, is Amplify My Business shut down? I have had zero responses from anyone for months now. Received an email basically saying that operations have ceased. 
This is the biggest scam I’ve seen. You took my $ and ran. 

I’m dealing with the same issue! Such a disappointment. I’m out about $15k and I used their financing service so now I’m making payments for something I’m not receiving. 

@Trevor Ewen thanks so much for the input! That’s very helpful. 

In this situation on a smaller deal $100k-$200k would you expect 60-70% of monthly cash flow and then also 60-70% of the profit if/when we sell the property? And that would be the difference of sale price minus initial purchase price or sale price minus debt payoff? 

I’m guessing you’d also expect your cash returned in full if/when the property is sold before the profits are split, correct? 

Really appreciate all the help!! 

@Lexi Teifke thank you so much for the input! That’s what I was thinking I’d do but I’ve heard of others doing it differently so wanted to make sure I was thinking straight. 

Hey everyone! Got a quick question on best practices for a deal I’m working on...

My business partner and I are listing our first SFH flip next week, just closed on a quadplex, and have another 6 units under contract to close next month. We're trying to scale quickly but are now exploring options for cash investors as much of our cash is tied up in our first few deals. I have an investor who has cash and is interested in long-term rentals but does not have the time to find, negotiate, close, and manage deals. So they want to provide the cash for the down-payments on our deals.

My question is on the equity split. I proposed to them that we (my partner and I) provide the deal, secure bank financing for 75-80%, manage any rehab work, close the deal, and setup/manage the PM going forward. Then they provide the DP but not in the form of a loan. I proposed a 50/50 split of cash-flow and equity. 

So...

1. Is this a fair and common split? The property is an $80k duplex. 

2. When we sell the property do we pay them back their initial cash investment before splitting any additional equity gained or do we split the equity at that time 50/50?

For example...the property is $80k and they put in $20k cash. We split the $250/month cash flow 50/50 for the next 3 years. In 3 years we sell the property for $100k and have not invested any further cash into the property during the 3 years. At that time do we pay them back their initial $20k and then split the additional difference between sale price and bank payoff? Or do we split the difference between sale price and bank payoff 50/50?

Any guidance would be greatly appreciated! This relationship could be very lucrative for all parties involved for the foreseeable future so I want to be sure we’re laying a solid foundation to start. 

Thanks in advance for any input!

Ben 

Hey everyone! My business partner and I are working on our first deal and we’re looking for a GC in the area (Taylors specifically) to give us a quote on a few things in a potential rehab we’ve found. Any recommendations would be much appreciated! Thanks!

Thanks guys! Looking forward to learning lots and getting things going quickly!

@Paul Timmins Thanks so much for the advice and tips! I will definitely check out all of those sites and resources you recommended! I hadn't considered using the Tax Repository for deals so that's exciting to learn about that!

Thanks again! 

Hello BP friends! I JUST moved back to the Philadelphia area (Pottstown for the time being) after living in the south for the past few years. I have been researching, reading, listening to podcasts, etc. for the past year while I prepared to move and now that I'm here I'm ready to get going with my REI business ASAP!

I have experience in construction and am leaning toward fix & flip and possibly some buy & hold properties. I believe I have talked my dad into joining me in this endeavor so that is very exciting! I love real estate, rehab construction, and everything involved. I have just been waiting to move back to PA before I got going with my first deal.

I welcome any advice, tips, or anything else that would help me in this exciting start to my business. I plan to visit a few REIA groups within the next few weeks to network and continue learning. I have LOVED reading posts, questions, answers, etc. on the BP site for the past few months and I am excited to get some of my own questions out there ASAP. What an awesome website and group of people!!

Thanks in advance for any guidance!

Ben Watkins