Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
Hi BP,
I need help wording a pitch to a financing partner. I have found a deal, sent it to a first time investor that is interested in getting into real estate. I know each partnership is different and has different terms but how do I suggest exactly what I want the deal to entail? This was his response after I sent him the deal and all of the numbers.
"How do you propose we structure the deal? Basically, if I put up the money what deal do we have?"
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
9y
@Cassidy Burns there are two types of Real Estate agents:
1. Just got my license and "I know everything about investing and can help you find something!" "I will set you up on a drip system and you analyze the deals from there." Really? Run the other way and don't look back.
2. Investor Friendly Agent: Analyze the entire deal for the investor and prove to them that it is a money maker and not a loser. Show him purchase price, rehab, closing costs and after repair value to determine his/her profit. Answer "Would you buy this deal?"
What kind of structure are they speaking about?
1. Taking Title? I use a land contract.
2. What profit you are going to make on the deal?
a. Commission
b. Part of the deal itself?
c. Management of the rehab?
3. Are YOU an investor friendly Realtor looking for repeat business from the investor? Discounted commission?