All Forum Posts by: Alyxaundria Sanford

@James Masotti Ok, I see what you're saying. So as an investor you want to check the effectiveness of the program before committing to partnerships. Thank you for your feedback and insight!

0 Votes

Originally posted by @Chris Martin:

I'm the wrong person for your project. Would you propose the same deal to a steel mill investor? The investor could pay to start a new mill, train people on how it's done, and give up 40% equity. Makes no sense. In the big picture, I think people have the wrong idea of what a real estate investor really is.

If you are looking for valuable training for former inmates, wouldn't one of the building trades (framers, carpenters, roofers, etc.) be a better place to start? The capital costs and barriers to entry are low, mentoring is more readily available, and the construction economy in areas with population growth is booming. The licensed trades (electrician, plumber, HVAC, etc.) pay well and I have hired companies that have placed former inmates in their company.

Starting off in the most capital intensive part of the business, with a proposition that the investor can foot the bill for the project, train people and pay to do it is not productive or beneficial for me.

Got it, that's actually some great feedback. Thanks!

0 Votes

Originally posted by @James Masotti:

Given that the new person is bringing nothing to the table initially I would recommend the following structure.

First deal 0/100 split - After all you said it yourself, you are bringing nothing to the table and taking everything.

Second deal 10/90 split - At this point you problem learned something on the first run through and can more actively contribute to the partnership on the second deal. Oh an all of your equity rolls into the third deal.

Third deal 30/70 split - At this point you think you got the hang of it and are feeling invincible. And all of your combined equity from the 2nd and 3rd deal roll into the 4th deal.

Fourth deal 50/50 split - At this point you've got a decent equity chunk into the deal, so you're actually committing money that you've "earned" into a deal. So that buys you something now. Plus you have a good feel for how to manage contractors or property managers or tenants that you're taking on a more significant portion of the work from the more experienced investor at this point.

As I get more experienced where I could be in a position to do something like this and a new investor come to me with this sort of proposal. I can't imagine saying no to it. It give me the chance to help out and still make money, both things I like to do. :)

For the record the newbie would have to find every deal to bring to the partnership. It wouldn't be worth it at all to me to take the deals I source myself and just "give" it away

James, thanks for this feedback. Just to be all the way open, I am developing a prisoner reentry program based around real estate investing. I would be interested in learning what would be an attractive approach to get investors interested in mentoring/training former inmates, who are participants in a government and/or privately funded program, looking to reestablish themselves in society. These are people who may have community connections and insight, as well as an entrepreneurial spirit, but just need some guidance in this industry.

0 Votes

Just to be all the way open, I am developing a prisoner reentry program based around real estate investing. I would be interested in learning what would be an attractive approach to get investors interested in mentoring/training former inmates, who are participants in a government and/or privately funded program, looking to reestablish themselves in society.

0 Votes

Originally posted by @Francis Rusnak:

I am in the middle of a JV currently as a new investor and am getting 50/50 for bringing financing to the table.

What would bring your value add as well as the fresh talents?

Inventory....As stated above, I was thinking the mentee would serve as somewhat as an exclusive wholesaler for the investor. The mentor would show them where/how to get inventory, and they would go do it. If the split is the issue, what would be an investor incentive, if any, for this type of relationship? I just threw that out there, no real reason for that number. They may come with financing, but at the moment, I'm basing it off they are brand new to the industry but have an entrepreneurial background.

0 Votes

Originally posted by @JD Martin:

What does the "fresh talent" bring to the table for their 40% cut?

Well nothing initially, I was thinking the mentee would serve as somewhat as an exclusive wholesaler for the investor. The mentor would show them where/how to get inventory, and the would go do it. If the split is the issue, what would be an investor incentive, if any, for this type of relationship? I just threw that out there, no real reason for that number.

1 Vote

So the split is the issue? Do you work with people who simply find you property like a wholesaler? What would be an incentive for an experienced investor to mentor/train someone? If this doesn't make sense at all, what would?

0 Votes

I am in the process of doing some research and would like feedback from experienced investors.

If there were an organization that connected you with fresh talent to train/mentor one on one, would you be open to committing to a 3 deal joint venture partnership with a 60/40 split for the investor?

If not, what would be the hesitation?

Is there a more preferable split?

Any other feedback on this is welcome.

1 Vote

I am in the process of doing some research and would like feedback from experienced investors.

If not, what would be the hesitation?

Is there a more preferable split?

Any other feedback on this is welcome.

0 Votes

@Manny Cirino Ohhh thank you for that explanation. I'll talk this over with my attorney.

0 Votes

All Forum Posts by: Alyxaundria Sanford

Alyxaundria Sanford has started 7 posts and replied 24 times.

Post: Partnering with Newbies

Post: New Business Strategies

Post: Partnering with Newbies

Post: New Business Strategies

Post: Partnering with Newbies

Post: Partnering with Newbies

Post: New Business Strategies

Post: New Business Strategies

Post: Partnering with Newbies

Post: Met a landlord looking to get rid of property