All Forum Posts by: James Gilstrap

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Tulsa.

Purchase price: $126,000
Cash invested: $38,000

Buy and Hold Rental

How did you find this deal and how did you negotiate it?

Found it through My Realtor. Negotiated $4K lower PP due to Area.

How did you finance this deal?

Bank Loan.

An update from a great mentor and investor. @Salvatore Lentini


Hi James- Personally I like to split 50/50 in all of my business dealings. Real estate and other business ventures. I just feel like it makes it feel fair for everyone. I think your plan of $40K to cover down money and closing costs for 50% is fair. You of course will have some potential money partners think that's a great offer and others that will think it's ridiculous that you're putting up nothing and getting 50%. Those are the ones you don't want to do business with because they are going to be tough to deal with every step of the way. You're finding the deal, getting estimates on repairs, estimates on rent, managing the asset for the long term while they sit back and do NOTHING. If they want more than 50% they are welcome to do everything you're doing. But guess what? They won't because they don't want to do the work. And keep in mind, whatever you do on this first deal doesn't have to be what you do on every deal. Every single one of my deals is different.

Hello BP Fam, I am rather new to investing, especially in the rental space. I have dome several Flips, but now moving to CF rentals. 

Deal Details:

I have a deal that is $126K Purchase Price, I am approved for the Loan at 75% bringing 25% to close for down and closing costs which is around $38K. This will be a long term rental. Will not have high appreciate in the market.

I would like to bring in another person to fund the closing and down, but I do not know how to structure that or split the monthly cash flow. 

How would you recommend structuring this? How would you split the monthly CF?