All Forum Posts by: Chris Williams

 No problem. It would be better for you to partnter with someone who is more experienced. DO NOT PARTNER with someone on your level. A newbie with a newbie is a boiling pot of disasters waiting to happen. Use this partnership as I way to learn how to crawl in the house flipping business. Use this partnership to ask questions and talk strategy about where you want to end up in the future as an investor. Making money is a team sport. 

 I gave up on preforeclosures years ago. I have good friends who call them and market to them, but preforeclosures are really tiring. In my experience, it is either they don't care, they don't want to talk or they are super aggresive. I tried to buy a preforeclosure on the market a few years back and the seller ghosted their real estate agent to the point that they cancelled the listing. A lot of people just have a lot of shame and denial, so I will be marketing to expired listings in the future. Can you make money on preforeclosures? Absolutely. I have friends hitting good metrics doing it just be prepared to do a lot of hand holding. 

 I appreciate you reminding me that it is a long game. I get caught up on that sometimes. 

A lender usually a DSCR loan from a hard money lender. I wouldn't partner with anyone privately on a rental property. Most people don't want to hold their note for 30 years outside of a lender. You could do it and have a clause where you refi them out in a few years, but nobody knows the future. That means you might have a refi clause but not have enough equity to refinance.

Partner with people in your market. I would build a relationship with the person before you decide to partner. Money changes who and what people want and are. I would also be as transparent as possible. If it isn't in writing it never happened. Make sure you and your partner talk worse case scenario. In terms of structuring the deal you can do it however you want as long as it is legal, ethical and agreed upon by both parties. Normally a lot of people will just flip a property and split the profits 50/50 but even tasks can be split. For example one person could manage paperwork and another person could be boots on the ground. Sorry if this is long winded I just wanted to provide a decent chunk of information 

 I once had a guru say that people who use their own money in real estate are lazy. I laughed and stopped listening to the guru when I realized that you can't just tell people that their money is secured by real estate and that in 2nd position they will ALWAYS get paid. I don't know I have a soul. I need to sleep at night. I have a reputation. I don't think I should have to run business ducking lender payments and using sneaky language. Will I never use a lender whether that be hard money or private money? I will use hard money and private money but always borrow the money responsibly and under that every deal carries risks and there are no guranteed returns. 

 Haha also don't forget that I need 5% interest and I want all interest moved to when I sell the property to keep my holding costs down. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

 I find this to be the case as well. It seems like some people are here to start arguments and not here to learn. I have been looking to learn more and more each and every day I am on here. I love the idea of BP. It is like a Facebook type app for real estate investors. 

For those who have employees what was that experience like? How did you go about interviewing, hiring, training and managing them? I am looking into hiring a boots on the ground for real estate as well as a lead manager for follow ups.