All Forum Posts by: James G.

Karen Margrave Thanks, feel free to let me know if you have any creative ideas for JVs.

Regarding private equity partners. I've made several RE flip investments individually and with partners. I've worked with investors in the past on a 50/50 basis in which I provided the knowledge and sweat equity while the partners provided all the equity. I'm curious what creative partnership structures (i.e. Equity partner compensation plans) BP investors are using for fix and flip projects; specifically, when you are personally providing +/- 50% of the equity, sourcing the property, managing the construction, and selling the property while a partner is equity only (+/-50%).

Brandon Turner Thanks for the bump. I agree with you, little changes are better.

Where is this property in Florida?

@Roy N.

I agree it may have been true you can negotiate a cheaper price with cash in the past, but now you can get an approved check from the bank and negotiate as if you are paying cash. Due to this, I have not found any difference in price.

Listening to BP podcast Episode 60, with Serge Shukhat, raised the following question. (Great podcast BTW) My market, South Florida, has experienced similar conditions to what Serge described of his market; i.e. prices for residential investment properties have increased to levels that leave little room for a return. CAP rates and vacancy rates have no room for further compression and rents have already increased with little upside remaining. My question is: 1. Which philosophy do the BP investors abide by and why: A. Pivot with what the market gives; changing investment criteria as you go B. Go with what you know; a well defined criteria with little variation

Unless you have bad credit, buying with cash is a personal preference, not a prudent investment decision, based solely on opportunity cost. I just purchased a three year old car with 6 yr loan, at 2.6%, and no additional financing fees. With this kind of financing available, I haven't heard a solid argument for using cash.

The argument of whether a 9.4% cash on cash return (or in this case an overall CAP rate, and not technically a cash on cash return) is a retail rate or not is irrelevant without consideration of the location. I am a commercial RE appraiser and investor in the South Florida region and, in my market, a 9.4% CAP for a property in an "attractive" location would be very difficult to find. However, in an undesirable area, that return would be expected. I wouldn't take advice from someone unless they have intimate knowledge of your market. Good luck with this property.

Good to hear you are getting into real estate wholesaling in the Jupiter. I also live on Jupiter, it would be great to get in contact to discuss possible synergies.