All Forum Posts by: Adam McEniry

Hi I'm wondering if anyone is willing to share the basic facets of a mentor-mentee Joint Venture partnership, where the mentee (me), will put most of the cash down in return for the leadership of an experienced investor? We're looking at single family homes (duplexes and tris). So financing split, equity share, cash flow share etc. Many thanks! Adam

The Joint Venture flips I've done were 50/50 split on the profits. One did all of the work and the other was totally passive and didn't have to work, manage or worry about things. Takes a special relationship to have that kind of trust in a Joint Venture. Lots of things can (and do) go wrong.

If you want being mentored thrown in it reminds me of a sign I saw in a repair shop:

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Well its little cash flow really, but it is having renters pay down your mortgage and build your equity right? I'm also Canadian looking at investing in the U.S. market, so I do see some value in their experience in how to do that, and used to dealing with PMs etc. Appreciate your thoughts.

Originally posted by @Jay Hinrichs:

Originally posted by @Aaron K.:

@Adam McEniry for flipping or buy and hold? IF for buy and hold I'd give the mentor very little if anything because unless you are buying major fixers and using their network of GCs to get a big discount they aren't providing a ton of value in my opinion aside from math. I'm always wary of partnerships where financial contribution is highly unequal, watch yourself and ensure you aren't taken advantage of.

Totally concur with the above.. owning rental buy and hold real estate is about the easiest thing to do in real estate giving someone a free ride on your dime to show you how to be landlord makes zero sense.. find a good broker to find the deals and if you dont want to manage find a good PM.. If your talking about major value add or construction projects then MAYBE. or if the mentor is bringing in some great deals for you ..

there simply is not enough pie to cut up when your talking about fully leveraged small assets like these I mean if they make 200 a door which you hope to get.. and you have 3 thats a whopping 600 a month if it all goes right which no matter who you are it does not always go right.. why would you tie up your personal credit and cash for half of that or a portion of that.. and if the mentor just wants a small share.. how excited are they going to be for a 20% cut a whopping 120 a Month.. does not compute in my mind.

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Thanks Aaron, it's a a buy and hold.

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Many thanks!

Adam

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All Forum Posts by: Adam McEniry

Adam McEniry has started 1 posts and replied 4 times.

Post: Fair Structure for a Mentor-Mentee Property Joint Venture?

Post: Fair Structure for a Mentor-Mentee Property Joint Venture?

Post: Fair Structure for a Mentor-Mentee Property Joint Venture?

Post: Fair Structure for a Mentor-Mentee Property Joint Venture?