All Forum Posts by: Peter Mckernan

I would only really do a long-term hold with someone on the minority side of the equity split. This would be I own 70%, you own 30%, and I will make the key decisions and manage the property etc. I have had 50/50 JV deals with people (one I just sold last year that was held for 10 years). It was tough since I was doing all the work, worked through an insurance flood and all and the person still could tell me to sell or not sell, and got the same equity position as me.

After that experience, only short-term deals on flips (of course, have it padded if the market turns and hold becomes the only option). As for knowing what you are getting into something for longer years (i.e. LTR) then I would structure it as an equity play towards you versus being split if you are doing all the work. Clearly define the roles for you both in the OA as well.  

 I'm not sure; I've never heard of MV Realty. What is the cloud on the title, and for sure, most title companies and or mortgage companies will not fund a deal if there is something on the title that is possibly going to have repercussions to the mortgagor or title company.  

I would not use a PM company for the rehab process, they typically are good for light rehabs or sometimes do not even have the capacity for that type of work. I would search for a realtor that has a lot of properties sold under their belt and ask them for a hand for this type of thing.  

No, this is not, unless you need the money back quickly.. It is a good option to keep your money flowing in, and then get some capital out (down payment they pay you) to pay some other stuff. 

This was posted by something else (the same thing basically). It really comes down to what the contract says and what you signed too. 

Call the offices for PMs in the area or agents. See if they do an open house for a weekend day and get apps in for you. Tell them you will either pay them for their time there, $50-$100, and schedule all showings on that one day. The next option is to say you will pay them a little less but comp them repping a tenant on app and at lease out. 

Risk verse gain, or in this case time verse waste of time. Calculate your time to go through this process as @Randall Alan said in his reply. This seems like a very small issue to be hassled over, and it would be like stepping over a dollar to pickup a dime. 

I would not have a GC give you a scope or advise on what to fix and what to not fix. I just heard this quote in a book, "The Second in Command." "The CEO is the homeowner and the COO is the GC." Basically the homeowner (or rehabber) tells what the vision is to the GC and the GC makes it happen. Not the other way around.

You need to have the vision and it should not be in an inspection report. This is something you do by looking at places in the area remodeled etc. 

My suggestion is that you do the cold calling first, that will give you the alignment on how these cold callers are asking the questions for your market, how they are waiting for the response, what they are responding to between seller and what that seller says. This is all about tonality, positioning of the conversation, and overall communication for your market. These cold callers could be a VA overseas or someone in New York and you are calling people in Green Bay. My experience is that you need to know what to be saying, doing and responding to the leads so that when that cold caller comes to you about an objection you know what to do and say.

If this is your first deal, no... If this is your 50th deal it is not bad if you know how to manage it and handle the management of the property or have a great PM to do that.