All Forum Posts by: Cameron Wright

@Jason D.  Thanks for the input! That is a big sticking point with me is the non-compete, but I also will be working a full time job and most of the projects I will be overseeing.

We had first discussed a line of credit and I pay pack interest on what I take, for ex. if I bought a house for 70k and needed 30 k reno, I would borrow the 100k, then pay back 10% on that plus 15% of the profit.  Then it changed to the 60/40 split.  So if we do well, they are banking on making more that way, rather than if I borrow more, then they make more.

@Patrick Hermans thank you for the feedback. He doesn't have unlimited money but he is willing to fund pretty much as many deals as I can handle at a time. So we may have 5 houses going on at a time or 10 but he does have the funds. At the same time I also will be doing some of my own deals with my own money. What do you think about the profit split? I thought it was pretty fair but wanted some opinions

Hi all,

I had a deal pitched to me from a money lender interested in residential investments.  He has does commercial for the past 40 years, and does very well.  He knows nothing about residential, and that is where I come in.  Long story short,  here is the deal:

-He will give me essentially an interest free line of credit.  

-I look houses 100k-200k with ARV of 180-400k.

-Most houses need 30-50k work of Reno

What the big question is..... He wants to fund the project, while I provide the GC and contractors, then we split profit 60%(me)/ 40% (him).

Most profits will be 30-40k, and we would split that.

I like that I'm investing with someone else's money and paying no interest, but I lose profit.  Obviously every house won't be a winner either so when we don't make much money, I won't still be on the hook for paying say 10% back.

This investor wants to sign a 2 year deal with me, and non-compete so I can't use other investors money or go do this on my own.  After 2 years, if all goes well, he would be interested in starting a new branch in his company and I manage that.

Any thoughts are welcome!!! Thanks

Okay thank you. But if I use a contractor, and have a bill etc from them, that can all be deducted from profit, correct? What if I set up an LLC and billed my time out to that?

Thank you Wayne

I allowed pets at first.  Then I had a tenant with a small dog (maybe 15-20 lbs) and it ruined the handscraped hardwood floors.  I charged a $400 deposit non-refundable, but still extremely unhappy since redoing the floors would cost a fortune.  Luckily it didn't do any other damage, but lesson learned! I know I will have houses in the future that are pet friendly, but they won't be as nice to begin with as this one is.

Good luck!

thanks guys.  I have had it contingent twice so far but it has been on the market on 2 days each time. I offered a split at 205 and he said no. 

Thanks Aaron.  Unfortunately, he is extremely stubborn, and will not.  I have asked for that and also to talk to my guys I had out.  In the end, he just wasted my time to get quotes. 

He is either offering the 201 or signing a release.  But I am leaning towards taking it, both since I value my time and have to drive 40 mins one way every time I go here, holding cost of about 1700 and also the fact that at 201, the offer is at $149 sq ft, which in my area is slightly above average, and probably a fair offer.

Hello,

First off, thank you for any advice on this.  I have a home contingent right now.  I listed it at $215 k, and had an offer of $218k plus 3000 in closing.  The inspection revealed some electrical and waterproofing of a crawl space.  I had 3 quotes, averaging around $9500 for both.  The buyer had one estimate for waterproofing and it was $16300.  He will not even look at my quotes, yet he asked me to do my due diligence.  He dropped his offer to $201k, as is condition.

What do you guys think?  I really want to sell the house, but not sure it will appraise at $215k even.  I was thinking of relisting and disclosing that I am having the waterproofing and electric scheduled to be done.  But even if I get a $210k offer, I am right back to where I was with this guy but will have holding costs.

Feel free to ask any other questions.  Thank you again!

Thanks guys for the feedback. I think that's the better option. even if it appraised at 215k I think with closing costs I would be under the cash offer anyways.

Hi all. I have a house up for sale and have three offers on it right now. Good situation to be in but also tricky decision to me. I have a concurrent offer which is low on the list. My dilemma is between a cash offer of $204,500 and a conventional offer of $210,000. I'm not too worried about funds in either case. they both want appraisal as expected and I'm a little worried appraisal might be somewhere around 200000 to 205000 dollars. I know it's short notice but they need an answer today or I I'm guessing at least one will walk away. Thank you for any input