All Forum Posts by: Ryan Cox

@Nicholas Lehman I think that you are thinking creatively about the investment and I agree with @Ivan Barratt that you should be compensated for finding the deal and putting the investment together. 

I would consider adding an acquisition fee of 2-3% on the total capitalization (debt + equity), management fees & a promote (anywhere from 80/20 split of profits to a 50/50 split as some have suggested).  I would investigate a waterfall structure if the splits start off overwhelmingly in favor of your investors to help you participate in the upside of an excellent investment.

Best of luck! RC

Welcome to BP! @Anthony Brooks  Congrats on your deal!

Congrats!  @Larry Rogers 

My best advice is to make an action plan to help you achieve your Q1 goal. 

What do you need to accomplish each day, week & month to hit your goal?  Write these down.

Find someone to be an accountability partner to hold you accountable to execute against your daily & weekly goals.

Build a network of investors and real estate professionals who have walked your path before.  Success leaves clues.

Like most things in life, it's less about the big idea and more about the execution.

Best of luck in 2018!

@Aron Siva  I think the best strategy for creating  leads is done by consistent work over time.  A few things that I would do if I were trying to create leads for this property type.

1. Identify a geography, could be a city, submarket, or section of town, with an adequate inventory of 10-20 unit properties.

2. Learn your geography up and down.  Who are the owners, brokers and buyers in this market?  What are the sales and rental activity, etc.

3. Build relationships with the players in your market.  Get their insights about the market & let them know the property type you are looking to buy.

Once you have done these things, you will be better equipped to identify a deal and potentially create deal flow from owners and brokers in the market.

Best of luck! RC

Chris,

I see a lot sponsors start out with 80/20 and seasoned sponsors with 70/30 splits. I think it would be beneficial for you to create a waterfall based on performance. Tying your compensation to performance is great for you and your investor. For example, the splits could be 80/20 up to an 18% IRR and 60/40 on everything above and beyond. This structure is common as well, while the splits and the hurdle vary based on deal, sponsor & investor.

Best of luck! RC

Hi Spencer, Congrats on your early success! Have you considered teaming up with an investor who has a track record of executing these strategies? I would also consider finding a solid real estate attorney that has significant experience executing these strategies. Both could add value to your business, reduce risk and give you an education. Best of luck!

The BP books and the community forums are a fantastic place to gain knowledge.  Learning the wholesale business would be an opportunity to take action and make some money as you are trying to establish a financial foundation.

Best of luck!

Welcome to BP @Gerald Evans  You're in the right place! 

I would plan to set up daily and weekly goals to help you accomplish buying a SFR in Q1. Lots of great ideas from the BP books and the community.

Best of luck!

Congrats! @Ryan M. that's a fantastic payday!  I think the best investments are ones that you passionate about or have a genuine curiosity about.  Meaning - Do some research. Find an investment strategy that gets you excited and you want to learn more about how to execute the strategy.  The more you understand the investment and value creation, the better chance you have to protect your downside and make money. 

Good luck! RC

Potentially a helpful resource @nizarbasma