Did I blow it?

[Kevin Cardinale]

Did I Blow It?

So there I was all psyched up, because I had been watching about 5 hours of rental videos on youtube. The last video I saw before going to dinner with my friend, was about an investor on here, who had helped his best friend, buy and rent out, his first house.

I thought I'd run the deal by my retired friend, since we were going to dinner. I hop in the car and say: "Bill, what if I bought a house for $80k with only $6k down and a cash flow of about $300 / month, over and above costs, i.e. profit." He says what are you giving the investor? I says "I'd pay them back the downpayment with interest and the rest of the term would just be mine basically."

Mind you, I have virtually no idea what I'm talking about. I am just talking to a friend.

He says it's not a good deal.

We pull up to the restaurant and he brings it up again, "how much interest." I say 4%- 5%.

I have no idea what I'm saying and it doesn't dawn on me he is still thinking about the deal.

He says again, "that's nothing."

After dinner we are going to karaoke, because I should be a professional singer and this is mainly why he hangs around me. Again, he turns to me and says, "that interest rate is bad, I can make 8% on the stock market." I say, fine 10% then.

Still I have no clue what I'm talking about and it STILL hasn't dawned on me that he is bringing this up.

We left it at that, and we haven't talked since then. Mind you I don't even have a house in mind, nor have I even searched for such a house.

My tiny brain is doing this calculation:
1. I have no money.
2. if i could find someone, like Bill, an angel investor
3. Bill could put both our names on the contract,
4. Bill could pay the down payment
5. I would be responsible for getting Bill the down payment plus interest back
6. I would take care of the house / tenants by myself after that

That's what I presented to Bill and it seems, although he immediately said no, that he would go for it. And, if Bill would go for it, then maybe someone else would go for it right?

I have no idea how to make such a thing attractive to an angel investor, or any other investor for that matter.