All Forum Posts by: Brittany Moreland

Yes I know it's a lot of money.  I have a business proposal to send to investors which says in it I'm open to starting as small or big as they're comfortable with and list a couple different financing suggestions and equity splits.  I can, if needed, obtain 70-80% financing so I have a few different ways I can structure things.  I would just prefer if in partnering with somebody to have them getting the interest, at 1% for 30yrs on the total amount of the $260,000,000...which not all the deals would go through and come down to the prices I want so that number would drop a fair amount...but at the $260mil interest alone is in the ballpark of $43mil.  Above is more my ideal scenario 

I think giving somebody 50% equity plus repaying the loan is incredibly steep when I would cover all additional expenses and construction expenses and give them equity in all future acquisitions that they put nothing into plus additional future real estate related business.  Do you guys really think that's what investors are looking for?  I don't see how a business can ever grow with giving that much equity away.  I would offer 50% if an investor put in 50% of their money and I financed 50% from my other lender connections but I don't see giving somebody 50% for a loan as a fair deal.  Can I ask you guys what you would offer if you were in my position that would make a long term arraignment fair and appealing for both sides.

Get your check over to the listing agents firm and they'll put it in escrow at their company.  Schedule the inspection asap and if an inspector can't get out there before the deadline you can file an extension for time.  The listing agent should be working on the p&s, they'll need the name or company you're  purchasing under, yours or your companies address and the attorney you plan to use.  Once you get the inspection done and the p&s over to the attorney as long as your financing is all in place the attorney will take care of getting ready for the closing.  If the seller or their agent isn't taking care of the smoke inspection schedule that as well once the inspection is passed and the p&s is signed.  You need a smoke certificate or a waiver signed to close.  This is how it's done in Massachusetts at least, may be a bit different in Florida.

Thanks Joe, unfortunately there isn't an reic I've found in my area.  To the best of my knowledge the closest one is approx. 1 1/2hrs away 

Can anyone point me in the right direction to find a long term equity partner?  I'm looking for somebody who would like to either loan me 100% for a 30yr term at 1% interest plus receive a 10% equity or fund 100% of deals and receive a larger equity stake.  I want somebody to fund up to a certain amount, $100-$200mil preferably, yet want to offer equity on acquisitions picked up after that amount is met and future real estate relate businesses, such as construction and staying companies as well.  I'll handle rehab cost, management and yearly expenses etc...and would like to build a nation wide company consisting of low income-luxury buy and holds, fix and flips, commercial, development and eventually branch out to vacation rentals as well.  I have an initial list of currently available properties clustered in specific areas, mostly Massachusetts, that are turn key and cash flow positive, minus some development, consisting of $260mil worth of real estate.  I'm not necessarily looking to purchase all the properties in one go but would like to start with at least $5mil for the first set of acquisitions.  I have the vision for how I can grow this very quickly and get some huge returns, I've run the numbers and I'm ready to go big on this.  I just don't know where to find deep pocket investors that would be interested in this type of arrangement.  I know this is a bit long just trying to explain my plans as best as possible.  Thanks for any help you can provide!

Are you looking at a home that is off the market or do you have a property picked out that's on the market already?  As Karen put justifying the commission amount at 7% if everybody else is paying less would be a difficult sell but it seems like you're looking to buy investment properties, not sell houses in that area.  If you're going after non mls listings with your realtor then she's not going to be asking for a 7% commission but a 3.5% commission from my understanding.  If it's mls properties the list agent has already negotiated the commission with the sellers and offered the amount of 3.5%.  If its not affecting what you're paying I still don't see any issue.  She's not listing properties for you so since you're not paying the realtor it shouldn't matter if she's making.  Should only matter if you're getting a good deal.  Unless you're dealing with commercial property where part of the offer is requesting an amount your buyers agent is to be compensated what they make shouldn't be of concern or really even discussed with them.  A good realtor, especially if you're out of state, is doing a lot of work on your behalf to make sure you're happy and get a great deal.  You should want your realtor to be compensated well.

There's no fixed price realtors can charge, I usually ask for a 6-8% as a starting negotiating point in Ma but the standard of what sellers are willing to pay is 5-6%.  Since she's representing you as a buyers agent though why would there be any issue with her receiving the extra 1/2 a percent when the seller should be the one paying her commission?  

It will take time to build your business and unless you have somebody to help out with bills I suggest keeping a full time job while you work on getting to a place where business is consistent.  Consider yourself a full time realtor though, you need that mindest to help you succeed. I don't have a career other than real estate but I do it in conjunction with being a single full time stay at home mom of 2.  As long as you manage your time and find what works for you then you can do both full time until you're secure enough in your business to transition full time.  Also don't wait to start marketing yourself as a realtor, start reaching out for listings now!  If you want any tips on getting started or advise on how to go about it feel free to send be a message.  I just passed my 1yr mark but didn't really start working until my daughter was 2mos old last March and have already been the top listing after within my company for this region 1mo and have had to stop actively looking for new listings because I had more than I could keep up with.  I'm always happy to try and help a new agent get started anyway I can!

Thank you very much.  Do you think offering 30% if they contribute 20% sounds fair?  I'm brand new to investing, getting ready to offer on my first flip property and want to pick up a bunch of buy and holds.  I'm not looking to get a multi family here and there, I want my first deal to be a few million worth of property so I'll be asking them to chip in a fair amount of change.  I can get the funding up and am not afraid to get the finding up to $200mil but realistically I would like to aim for around $15-$20mil so really want to make sure I'm making a deal that's fair both ways if I'm asking somebody to invest $4mil.

I have a few large buy and hold properties I'm interested in and I have connections for the funding with 20% down.  I don't have the 20% down but have had 1 investor mention an equity partnership and have 1 other investor I would like to approach with the idea as well.  What is a mutually fair structure for an equity partnership if they're putting 20% cash and I'm going in with 80% financing?  I would guess the one putting up cash is going to want more than 20% return.  I also want the partnership to only be on deals that they put in the cash for not with every investment deal I do and I'm not sure how that tends to work with real estate.  I would like to present the partnership to both of these investors with all the details in place as I would like them and see who's the best option to move forward with.  If you have been on either side of this situation I would live to hear your thoughts!  Thank you