All Forum Posts by: Michael Moikeha

I pay someone on CL to do my letters. I send out about 4000 a month. I print off 20,000 letters, buy a ridiculous amount of envelopes (I guess that would be 20,000) and pay her to sign the envelopes, stuff and stamp them, and take them to the post office. Over time we have given her more and more responsibility in the process and it has worked GREAT!

Hey BP members. I've been working in the Portland area for a while, but haven't really been able to capitalize on the Wholesalers market out here. Any local Wholesalers in the Portland/Seattle area have some advice on how to really capitalize on this tool?

Another good resource would be a local Escrow Agent. They have paperwork that can be used in mutual agreements like this. They are not attorneys though, so that is the best bet.

 Ha ha. Good, because I wasn't sure how I was going to approach explaining it in another way!

@Doug W.

No. So a 50/50 partnership where the one partner is the equity partner and the other is the one on the ground is normal. Sometimes you have a big job and need multiple equity partners. Those equity partners split the 50% of the profits based on their contribution percentage of the overall costs. 

Contractor finds the building and does the work. That gets 50% of the profits. On a project that has a $50,000 repair budget and a $100,000 purchase prices, the equity partner should be covering all $150,000. That is how a normal 50/50 agreement works with a money partner. 

Now, if the contractor is expected to front the repair costs, that makes him partly an equity partner. He already gets 50% of the profits from finding the deal, managing the deal, and doing the work, but if he is also putting forth money, then he gets a portion of the equity partners split as well, just as any other individual who puts money in would expect. 

He put in a 1/3 of the equity, therefore he would get 1/3 of 50% of the equity partners portions PLUS the 50% from his work put in. 

Obviously this doesn't have to be the case, but it's what I would negotiate if I were the contractor. The whole point of an equity partner is that they bring all the money to the table. If not, get s hard money loan where you are required to put money down and make more on the deal yourself. 

Do them both. No one says you have to stop your JV Partnership just to go find deals on your own. If a deal comes through the current pipeline, chase that deal like you have been. If a deal comes through your new efforts, take that down the other path.

@Seung Lee - Are you referring to purchasing real estate as an investment or as an owner occupant purchaser?

Purchasing cash is great, but often times its better to share the wealth than to take on 100% of the risk and tying up all your assets.

Unless you are buying as an owner occupant, you can not use a VA or FHA loan.

My first question is why be an out of town investor? Is there a reason that you can not invest locally where you are at?

FYI - You say all your info in annualized, but you have expenses at $2,400 and rent at $669, $660 which should be just under $15,948 rent. 

FYI - Those expenses seem drastically low and should be checked. I would imagine that it is somewhere closer to double that much if you are properly calculating and budgeting.

IF you want to be an investor, then you cant be thinking of using FHA or conventional loans. Thats just buying a house. Start looking through the forums and blog posts here to expand your understanding! Then once you create a way to build capital, then you can come back to this idea of a mobile home park and a horse ranch.