Center Valley, PA · Member since 2017 · 5 posts · 0 votes
Hello,
My name is Milo Guzman. I'm a newbie from Lehigh County Pa, My wife and I have been studying this site among other and doing a lot of research on investing in our surrounding areas. I believe we could be in the stage of seeking funding for our first project however we recently purchased our home so our $ situation is less then impressive at this time. My question is, would it be unlikely for a cash investor to consider my Skills/time/labor to be skin in the deal? Although I know I could not accomplish all the work myself I am very capable of most aspects of the rehab ( I am not a "do it yourselfer" I am a professional. Dollar for dollar this seems to make sense and I know I could more then cover my share with what I have described. Has anyone every dealt of heard of any deal such as this?
Although not what I wanted to hear it is what I expected. With that being said I have no issues perusing "unlikely." Would you be able to offer any advise on how I might go about this? Any and all advice is much appreciated.
I know people who have done this, but the pitch is always to people they know. I can put a direct dollar amount to my in-kind investment in a project. I'm sure if you put a value to it, a good business plan, and some real charismatic sales skills you could do what you're trying to accomplish.
It is always with private investor's though. I don't banks would ever consider this option. (Just a guess here.)
Thank you very much for the advise. I am going to start working on what you suggested. Would you mind if I contacted you once complete and asked you if you would be so kind as to take a look and offer any further advice?
The main problem is what you value your time at . You may think you are worth $ 30 dollars an hour . But since I am the money man , I may think you are not worth that .
its very similar to tenants that want to do work on the house for reduced rent . I have had offers " I can paint the outside of the house for $ 30 an hour , I could have it done in 3 days " My response was , I can do it in 1/2 a day . I have a Graco sprayer . So no thanks
@Camilo Guzman - you're trying to fit a square peg into a round hole. I can't imagine an investor with any brains who would do this. It'd be just like lettin' the fox into the henhouse. Put another way, let's say some investor gives you 50% of the equity on a $100k deal. He's basically loaned you $50k, with only your word to do the work to pay him back. If you get hit by a bus, he's a goner.
and - I see you're points. I'm going to put this brain storm to rest after doing what suggested in this post until when and if a situation would arise that that I might pitch the idea. Until then Ill be studying up on creative financing and although its not a great interest to me possibly wholesaling to build a platform. Thanks again to everyone for the advice, biggerpockets.com is FANTASTIC!.... and addicting:)