All Forum Posts by: Bryan Escudero

Thanks Jay! Will DM you. Hopefully closing up two deals within the next 30 days. Small projects, but building the network.

BP Family,

Does anyone in TN know of a good contractor in Jackson, TN? I will possibly be traveling that way in the next couple of months and am looking for a trustworthy contractor that works with investors.

Thanks!

Hi there Jose,

I am new to BP and have been looking for a meet up. I have not been able to find one yet. I am closing on my first MFH in 10 days and will be putting an offer on another in TN. South FLA is too rich for my blood… I have been pretty busy getting those purchases going and helping some close friends and family get into REI. Once I get those normalized, if I still don't see anything pop up, I might start one in Miami. I will put out the feelers in a month or so. I am just looking for a place to speak with other investors on their experiences. Let me know if you find anything and I will do the same.

Good luck!

Great advice Scott! I will take it. I have put the feelers out there and they will look to me for what is fair. I don't want to take advantage of anyone so this information is crucial to me. Thank you!

Quote from @Marcus Auerbach:

Fair compensation is a function of the value you contribute; if the deal would not have come together without you a percentage of the packe is appropriate. A good default is 3%, but it could be anywhere between 2% and 5%. Keep in mind that the investors will make a multiple of that thanks to you. You should be paid at closing.

Make sure you comply with State law, a title company or closing attorney (depending on which State you are) is probably a good starting point to investigate. I believe the license requirement only comes in when you keep repeating this type of work..

After the package has closed and you continue to contribute you should be compensated differently, either like a GC with a percentage marktup on the work done or like a PM. I would still shy away from hourly, because the tracking is debatable and also you should be compensated for results and not time.

Thanks for the info Marcus! I appreciate it. I have a personal relationship with the investors so I don't necessarily want to or need to break the bank on this type of deal. I like the idea of splitting the two "jobs". It keeps it clean. I am also able to learn on this project as I layout the proforma, pool the investors, prepare presentations and reports...

On the other hand, would it be out of bounds to get one of the $75K homes as compensation for the whole package as well as continued management of the whole portfolio? I was wondering if this is a case where I would benefit more from a small peace of 10 homes or a large peace (100%) of one of the smaller homes in the portfolio as compensation. 

Thoughts?

I do enjoy the analysis of it and have a decent size group of people willing and able to do the same type of deals...What licensing would I need? These investments would almost always be long distance. I guess I will need to start making relationships with title companies. 

Thanks again 

Quote from @Marcus Auerbach:

Fair compensation is a function of the value you contribute; if the deal would not have come together without you a percentage of the packe is appropriate. A good default is 3%, but it could be anywhere between 2% and 5%. Keep in mind that the investors will make a multiple of that thanks to you. You should be paid at closing.

Make sure you comply with State law, a title company or closing attorney (depending on which State you are) is probably a good starting point to investigate. I believe the license requirement only comes in when you keep repeating this type of work..

After the package has closed and you continue to contribute you should be compensated differently, either like a GC with a percentage marktup on the work done or like a PM. I would still shy away from hourly, because the tracking is debatable and also you should be compensated for results and not time.

Thanks for the info Marcus! I appreciate it. I have a personal relationship with the investors so I don't necessarily want to or need to break the bank on this type of deal. I like the idea of splitting the two "jobs". It keeps it clean. I am also able to learn on this project as I layout the proforma, pool the investors, prepare presentations and reports...

On the other hand, would it be out of bounds to get one of the $75K homes as compensation for the whole package as well as continued management of the whole portfolio? I was wondering if this is a case where I would benefit more from a small peace of 10 homes or a large peace (100%) of one of the smaller homes in the portfolio as compensation. 

Regards

BP Forum Team!

I am currently working on a deal that will include 10 SFH for roughly $1MM with a small group of investors. The homes range in value from $75k-$175k. I can bring in others if there are rehab costs involved...there are many ways to split this up, but I have been thinking about having a master contract that would govern the deal. The best interest rates for the investors would be found in them purchasing the properties as SFH. We would need to figure out the equitable distribtion of the Cashflow and Equity.

What I am bringing to the table is:

Finding the deal.

Negotiating the final price

Guiding through due diligence

Mananaging (managing the project manager)

Working with the parties to setup the purchase, including lenders real estate agent etc.

I am not a Real Estate agent, Broker nor do I have any professional licenses to my name. I have put in a good amount of time an effort to gain a base of knowledge in Real Estate and building systems. I am closing on my first deal in a couple of weeks and should push to close on my second at the end of May.

What is a range that I should be looking for in the ways of compensation? What is a market rate for this type of service. I am open finders fee, equity, a portion of cashflow etc. I want to respect this group of investors. I am not looking to make a ton of money on this. I have been able to learn a ton on this project-assuming we can close the deal. Part of that learning curve is the compensation structure that I should be considering in this deal. 

I appreciate any guidance on this topic. I look forward to hearing from those who have gone before me. Thank you!

Quote from @Julio Gonzalez:

Hi Bryan, welcome to the community! There is a great group of members on here to connect with.

 Thanks Julio! I was hoping to actually see some people face to face hear wins/losses and lessons learned. 

Long,

Lets do it! I should be closing on my first MFH in two weeks and am actually ready to put an offer on the next one today. Hoping to square that up and would want to hear how your SFH works out. Let me know once you are settled in.

Bryan

Hi all,

I saw an old post about someone looking for a BP meetup in Miami. I am currently closing my first deal in TN. I am also working on evaluating some much larger deals.  Anyone out there meeting up? I would enjoy conversations over cafecito. Long distance investing looks like it will be my best option for now as South Florida is too rich for my (investing) blood. I hope to hear from some of my fellow South Floridians or some of the folks in Tennessee.

Cheers!

Bryan