All Forum Posts by: Caron Bracy

Quote from @Doug Smith:

Our real estate investment arm has done this and we have a couple of deals going right now with a similar arrangement. We bought the lot with cash and the builder is using his line of credit to finance the build. He's doing it at cost and the profit is being split. A special purpose entity (LLC) is being set up for the occassion and the is responsible for providing documentation for every dime that goes into the build. It's simply another creative way to do a deal.

That makes sense. They have skin in the game. They are using their line of credit and doing the build at cost. 

Hahahah. EXACTLY!!!

Looking for thoughts…I was approached by a contractor to partner up on deals. He is looking to source deals for me. However, he wants me to still pay him the rehab cost for the project and then split the profit with him 50/50. Am I crazy or does this make sense to do? He claims that he has 2 other private investors that are doing this with him. I’ve worked with the contractor for about 4 years. This is some trust there. However, I don’t see how it makes sense for me to split the profit with him, pay him as I would regularly for rehab, and split the the profit 50/50. He has no risk/skin in the game. In this market that seems completely insane.

Thoughts???

Looking for thoughts…I was approached by a contractor to partner up on deals. He is looking to source deals for me. However, he wants me to still pay him the rehab cost for the project and then split the profit with him 50/50. Am I crazy or does this make sense to do? He claims that he has 2 other private investors that are doing this with him. I’ve worked with the contractor for about 4 years. This is some trust there. However, I don’t see how it makes sense for me to split the profit with him, pay him as I would regularly for rehab, and split the the profit 50/50. He has no risk/skin in the game. In this market that seems completely insane.

Thoughts???

Hello BP,

I'm looking to connect with investor friendly real estate agents and contractors in the Jacksonville/Duval County area.

Seeking to buy single-family (ideally 3 bedrooms), or multi-family properties, that need rehab. I'm open to turnkey (but rehabs preferred). I'm not interested in warzone areas (C-class properties or better in good location).

Price ranges for the single-family and $100k for multi-family up to $200k.

Our goal would be to cash out after a 70-75% re-finance and have some cash flow in the deal; $200 per month would be ideal for the SFH.

Let me know if you have any recommendations!

Hello BP,

I'm looking to connect with investor friendly real estate agents and contractors in the Jacksonville/Duval County area.

Seeking to buy single-family (ideally 3 bedrooms), or multi-family properties, that need rehab. I'm open to turnkey (but rehabs preferred). I'm not interested in warzone areas (C-class properties or better in good location).

Price ranges for the single-family up to $75k - up to $100k for multi-family.

Our goal would be to cash out after a 70-75% re-finance and have some cash flow in the deal; $200 per month would be ideal for the SFH.

Let me know if you have any recommendations!

@Travis Moe that’s correct. We’ve had the property under contract for about a year. They owners have been going through probate and things have finally been settled. Similar homes have sold for $155-165k.

@Jack Bobeck the information on Zillow is incorrect. You can see this home has been on there over a year. We’ve had the home under contract for about a year because the family was going through probate. If you look at homes in the area that are pending, listed , and sold you will see this is undervalued.

4 bedroom/2 Bath that has great bones. Alley access, downstairs bedroom and bathroom. Great location to invest. A lot of rehabs and new homes being built in this hotbed. We have the property under contract but are tied up with other projects. Looking for an investor that can close December 14th. 

@Kenneth Garrett Thanks for the feedback. I have a hard money lender that I'm working with to get to that point. Always looking for additional resources (networking). I'm coming across deals so I want to make sure I have funding before to close quickly and smoothly.