All Forum Posts by: David Banker

Good morning BP. A conceptual question for you:

From the point of view of a capital partner arranging a partnership with an investor who is getting into the game and will do all the hustling and managing of the business…how would you propose a cash flow and equity split under the below two scenarios? An assumption with both is that you want the relationship to continue indefinitely and you are already set in terms of wealth.

1) you are 100% self serving, while keeping the other partner incentivized to keep making you money.

2) the other partner is a personal/family relationship and you want to earn a return on your money and maybe keep some equity but, again you’ve made your wealth elsewhere and you just want to help them be successful.

Go!

@Barry Ruby that’s a great approach. I can see how that would play out well, however the area of focus is fairly close to Chicago. Less opportunity than Boulder for sure! But conceptually, a great one to keep in my back pocket. Thank you!

Hello! I am looking for advice on a strategy to acquire vacant lots. I have a strategic partner as a long term tenant, who anticipates rapid growth in the next two years. In order to keep pace as the land acquisition/landlord side, I would need to acquire dozens of vacant lots in the next 12-18 months.

I understand this may require a 10x or "if your life depended on" type of an answer or thought exercise, but any guidance is appreciated.

I don't want to lead the witness with my thoughts on the approach. Both creative and tactical suggestions welcomed! (but please identify if you have expertise on the tactical side)

Thanks in advance!!

@Phillip Richardson I know this is an old post, but what have you learned since then as far as the best places to get this sort of business plan/operating/structure agreement?

@Beau Watson

Do you (or anyone here) have experience with Hyre car, and can speak to the adv/disadv vs Turo?

@Lane Kawaoka

Have you tried this strategy with Turo or the like? If so curious on the economics

@Eric Bilderback good advice. There’s an urgency but realistically it’s something that builds in time

@John Warren

Great advice. I am making it a point to search forums about strategies that I am curious on, and connecting with people that are like-minded or have similar strategies. I have not been to any local in person meet ups… But what would you suggest is the best way to build a cohesive group in the way you’ve described? I have made a handful of good connections on BiggerPockets but all in silos. I value the idea of being the least intelligent person in the room.

@Henry Clark

First off I really do appreciate the time you took and the certainly seems like a great structure on my path forward.

I think building out my network of investors that have accomplished some level of success in strategies I’m interested in is critical. In other words it’s fine that I can use my analysis and modeling skills to lay out the numbers… But the above advice will help me learn what good looks like, or what bad/acceptable/great value ranges actually are for things like Cap rates in a given property type/area, income growth for a city or rehab costs etc etc. Where can I find your self storage 101.?

I am in the process of picking the strategy that I want to lock in on, but I like the idea of BRRRR investing in whatever market satisfies my future model's minimum. If that is in my backyard, so be it. I would like your opinion on the main advantages of investing locally if I am assuming that I won't be doing any hands-on work for the rehab or property management. I suspect if legal issues arise and I am forced to be in person?

Speaking to the 10 years or less timeframe, I would love to cut back on my day job. What that might look like for me is working 30 hours a week or taking contracting assignments. This might cut my income in half, but at that point in time I will have enough cash flow to supplement our lifestyle and expenses.

Thanks again!!

@Paolo Ruggieri sure that sounds great. What is the best way to reach you?