All Forum Posts by: Philip Bashaw

@Karen Margrave

Yes. I have thought about this too. I am being introduced to him through someone that knows him personally and has known him for 3-4 years. Like I said, I have been networking and telling everyone what I do. I listened to @Brandon Turner quite a bit and knew I need to get creative, be teachable and be open to possibilities. Prior to being and investor, I was a high end landscape contractor for myself and others I worked for. I am ready and have been waiting for the right opportunity and educating myself.

Thanks Karen!

@Jay Hinrichs

Thanks for your insight. I am hoping he has a money manager so I won't have to track him down every time a deal pops up or someone wants to sell off their portfolio. Over the last couple of years I have gotten very good at quickly analyzing a potential deal and the good deals go with cash (and a fast closing).

@Wayne Brooks

Yes and no. A 50% profit split is not more costly than hard money and I will not have to limit myself on my ability to make monthly interest payments or putting 20% down on each project. I am good at finding deals. Just think about how much an interest only payment would be on a $1,000,000 apartment project or multiple single family deals. 10% is $100k a month! That doesn't work for me. To me, hard money works if you can get in and get out quickly on lower cost projects. Longer term deals or multiple projects need a lower cost solution like what I have been looking for.

Hey Everyone!

Thanks for all the great feedback! I will try and answer each of you individually too. 

I wasn't going to go all in for the 25 million at once because that's just not right. I actually have an off market apartment deal I've been working that could use 2 million for starters. Very undervalued with great rent potential once rehabbed. Solid C neighborhood. I also just missed out on a 3 house deal for an estate I almost had a buyer for totaling 870k purchase & +/-500k rehab budget.  (350k profit once rehabbed on all 3 houses). This would not work with hard money. All the profit would be gone.

There are smaller deals in the works too. I like the 50/50 profit split idea for 100% financing. I have lost out on several profitable deals because it seems I can't ever buy cheap enough to make the hard money costs work. There are too many other investors paying too much for properties and wholesalers are taking advantage of the seller's market and an influx of new investors that like to pay too much.

Also, this individual has other money than this 25 million. It is not his life savings or nest egg. Apparently he made a lot of money in the finance industry over years and real estate is his new interest.

Thanks again guys! I look forward to more feedback and insight

Phil 

The comps are there, but the asking price is too high and the repair estimate is way too low. You can't renovate the existing house and double the square footage for 78,000.

Hello BP People!

I figured this might be the best place to post this and get feedback. Through networking, I have perhaps stumbled upon the golden goose that all real estate investors seek. No offense to a the hard money lenders on this site, but I am over hard money and have been looking for a silent partner/private money lender for almost 2 years now. I have been relatively quiet with my local REIA and other groups because I have had a single purpose; find lower cost financing for my deals!

Now, there is a wealthy individual that wants to jump in the real estate game as a silent partner and has set aside 20-25 million dollars in a liquid account for investing. I am meeting with him (and my contact) after Labor Day to discuss ideas & options and want to make a good impression. He has no real estate experience other than buying his own homes.

This is not the first wealthy individual I have rubbed elbows with so I am not nervous at all. Prior to becoming a real estate investor, I was a high end landscape designer/contractor and had several clients with loads of disposable income. As a real investor now, I see and talk to people with millions of dollars all the time. My biggest fear (more of a concern) is that I don't make a good enough impression and he takes his money elsewhere. I am a future millionaire, he is just ahead of me right now.

To be clear, I don't expect this silent partner to fork over the entire 25 mil and say "Have fun guys!" but I do know to put 3-4 million of it to use right away in single family fix n flips and small apartment investing. I know how to listen and see where he is coming from and what kind of return he is expecting. My suggestion would be a 10% return short term and up to 30% return long term when we buy a distressed apartment building or buildings and turn them around. I am the boots on the ground and always looking at, analyzing and number crunching potential deals and they all work best without hard money. This is why I'm pretty excited about meeting with this person!

As always, I welcome your feedback and look forward to any and all responses. I am thinking about putting together a short synopsis of my my background, training, projects and future deals to give him at our meeting. We are meeting for lunch initially, so it's not going to be formal.

Thanks!

Through networking and seeking lower cost funding, I am meeting with a multi-millionaire with no real estate experience other than buying his own personal homes. I am not nervous about meeting with him, but at the same time, I don't want to say the wrong thing and/or show lack of competence. 

This guy wants to be a silent partner and let us work and find the deals for single family flips and rentals. I have also been looking into small apartment investing. There's a lot of money to be made in apartments if you buy a distressed asset, renovate it, raise rents and occupancy, etc...I have studied this a fair amount and know how talk about the numbers and so on.

I have been looking for an investor/lender like this for a long time. Would a 10% return be an acceptable expectation from his perspective? Afterall, I would be the man with boots on the ground finding, budgeting and managing several projects at once. 

I would love to get some feedback and perspective

Thank you in advance

Hello @Aryelle Collins

Did you ever make any headway with finding money partners? I am looking to do the same thing and have begun looking in earnest

Thanks!

Phil

My recent flip that is listed with Keller Williams (Chuck Smith Group). Here's the link to the listing and they are hosting an open house this Sunday 10/9 from 2-4pm

http://fmls.mlsmatrix.com/DE.asp?ID=3059588114

lot size is 15,533SF

@Ray Sample Yes, I have considered hard money, but without any funds of my own to put in, no hard money lender will work with me. My current lender will work with me, but he wants me to close out my current loan with him first and we are 30-45 days away from that once we go under contract. I have 60-80K profit in the deal...we are listing it on Friday

Thanks!