All Forum Posts by: Brendan Winans

I've been a Realtor and an investor for almost 20 years. I don't make it a practice to look up an owner prior to showing a property, and don't know anyone who does. The only reason to do this would be to check the 90 day timeline. I can usually tell by the marketing photos whether or not corners were cut. If you cut corners on cosmetics, than you almost certainly cut corners on internal systems (how you do anything is how you'll do everything). I cannot imagine a realtor that has been in the game for any amount of time actually caring whether or not you hold title in your personal name or in the name of an entity. We care about whether or not it meets the needs/wants of our client.

Also, it's pretty clear what people think about the "intend to move in" tactic. "Move in" (occupy) does not mean spend the night. To willfully neglect the spirit of the law in order to manipulate a timeline for removing someone from their home would certainly keep me from getting a good night's rest... but maybe that's just me. 

There are a number of ways to structure this. I would say the most common for smaller operations would be a straight equity split with a premium for "Bob." Something like a 60/40 split in favor of Bob for doing 90% of the heavy lifting. 

A common model in larger operations is the "Promote/Carried Interest" model. Bob earns a promote or carried interest for being the deal sponsor. Example: 8% preferred return to all investors (pro-rata), the profits are split 70/30 (Bob/Jim) until certain IRR or equity multiple is achieved (Could be 80/20 or 60/40 depending on risk, deal complexity, or value-add level).

You could also do something like a Fee + Equity model 

It's highly unlikely that Jim would expect a 50/50 split. If he's intent on investing passively, he likely knows what to expect. 

Hope this is helpful. I'd be interested to hear how Bob fares. 

@Doug P., thanks for the nod. Don't let my "title" trick you though. I've been an active investor for 15+ years, both personally and professionally (running my own companies as well as a mid-sized investment company that buys across the U.S.). 

I'm seeing talk on here about regions. While there is variability from market-to-market, in terms of price trends, demand, laws, etc. I can say with confidence, region does not determine the viability of cash flow. Ultimately, it's your purchase price that determines this. 

Retail pricing and investor pricing are not the same thing. Ideally, the only place that the retail market and the investor market should overlap is in disposition. If someone pays retail for a single-family property, they are less of an investor and more of a home-buyer. 

My average purchase, as well as the average of the investors I know, floats between 50-60% of retail value. This is all across the U.S. 

I'm not trying to oversimplify, and I don't mean to downplay any of the real challenges people experience (deal sourcing, negotiations, financing, reliable contractors, dispo, etc.), but I'm confident in saying region is not the issue. Nor is current interest rate, for that matter. "Buy deeper" is THE solution for so many problems. 

 I'd be happy to schedule a call sometime and go over my approach, as well as work on yours. DM me if you're interested. 

Hey Chelsea,

Just curious, where are you sourcing deals from? 

Just about any property will cash-flow... if it's bought right. 

A lot of people run their operations on specific formulas like (.7 x ARV) - Rehab Cost = Max Offer Amount.

I'm not suggesting this formula, but just that you have one. 

Ask prices on deals are irrelevant, you need to buy it where you need to buy it. Your job is to find the seller who's willing to go there with you. 

I hope that's helpful. DM me if you ever want to chat more about this. 

It's Monday, and that means it's a fantastic time to review last week's performance! 

Weekly reviews are a critical component to success. Without them, refinement is impossible.

Every Monday is when I hold a quick meeting to review last week's numbers. I view my flow of processes as a river, and I scan my KPI's (key performance indicators) in order to surface and potential "dams" in my river that may obstruct my flow, and prevent me from reaching my targets. This process allows you to identify and address issues before they become problems. 

Dams can be caused by a number of issues, not limited to, but including poor process adherence (personnel issue), misaligned processes (process drift), or process friction (environment, timing, etc.).

The source of a dam isn't always immediately obvious. At a real estate investment company, where I served as the COO, we experienced an issue that, had we not dug deep into the numbers, would've been attributed to the wrong department. KPI's were great, even above target through the whole flow until we got to the Disposition department. Deal cancellations were twice what they should've been. As we dug into the numbers, we noticed all the deals that were cancelling, were coming from one particular acquisition agent. On the surface, his numbers looked awesome. He was converting at a much higher than average conversion rate. Turns out, that was because he wasn't negotiating viable deals, but rather was locking deals up wherever he could get them. This lead to an overhaul of how deals were negotiated, which had a positive effect "downstream."

As you scan your performance indicators and execution framework, ask yourself.

What worked?

What didn't?

What will I do different this week?

Leave this meeting with a commitment that MUST be completed before the next review. 

Now, I want to hear from YOU! 🫵

Answer those three questions in the comments below. 👇

Hey Warren, I've been a Broker for 18 years, and actively investing here in Bakersfield for 14 years. Happy to answer any questions you have! DM me. 

Hey Brett, just to be clear, are you wanting someone to help you learn to analyze them yourself? 

I agree with Steve and Ken, without knowing the nature of the relationship/contract, it's difficult to advise. That said, this is real estate, you don't get paid for your time, you get paid for results. If you didn't deliver, you didn't earn any compensation. Either way, be sure to do a review to determine what you can do better next time around (better deal, better marketing, better pricing, etc.). 

I don't manage my own properties any more, but when I did I used Buildium. I was able to manage over 100 units by myself with that software. It checked all the boxes back then, I imagine even more so now.