All Forum Posts by: Dell Schlabach

 You can put them in dotloop or docusign, its how we sign 90% of our contracts today. 

You can email, have them print, sign and overnight them to you. 

You can overnight, have them sign and overnight back. 

You can fly out and have them sign. 

Those are relatively fast compared to snail mail. 

 Glad you found it helpful, to get things sorted out today.

Congratulations on getting the deal! 

Let me know when you are ready for the drinks and I'll be there. 

@Ronda Robb

There are no real "fair" partnership percentages. There is such a difference on what people's needs, skill, experience  and comfort level are. 

If your agent gets buy and sell commissions, and her husband gets paid to as the GC to do the rehab, it could easily be argued that there is no need to split any profits, some profit incentive like an 80/20 or 70/30 would seem more reasonable. 50/50 seems excessive, but that doesn't mean a 50/50 is not a good deal in a particular scenario.

Only you can decide what is a worthwhile return for your effort, time and money, considering the benifits and and value your "partner brings to the table for you first rehab across the country.  

The one thing I would do if I was relying on my "partners" advise and expertise,,judgement if the numbers to put the deal together.  I would put a minimum in for myself before the profit split. Say 5k or 10k, at least the equivilant to what she is going to make in comissions,  if there is no significant profit to be split at the end. Happens to new people more then you like to think. 

The important thing is to write up an agreement, so both parties are clear about what happens under various situations. I have been in partnerships that went south, and the fun ends quickly when people start disagreeing and soneone dorsnt hold up their end if the expectations. People can get along very well until they are in a partnership and expectations are unclear, or unmet. You really get to know your friends, even family members, when you start working together. 

Couple key things to decide before, and write them.

1. Who makes the design, layout finishes, decisions? 

2. Have timelines on project completion, what happens if they are not met.

3. When do you have the right to fire contractors and hire new ones. A week after deadlines are past, a month? 

4. Budget overruns, what happens if they go 10-20k over budget. I noticed the 25k rehab, for a 130 house which makes me a bit suspicious in the numbers, we may have done two rehabs out of a couple hundred  rehabs with  25k in renovation. Most are 35-65, average is around fifty. I noticed she is owns under 30k rentals, rehabbing a 30k rental should be very different from rehabbing a 130k retail. I also noticed the if it doesn't sell in 3-4 month we will turn it into a rental. Bad mindset to go in with on a flip in a hot market. Decent houses sell in under 30/days in this market, unless you are in Akron or Canton or similar city school where young families don't want to send their kids to school. It's rare for a good rehab to sit on the market for more then two weeks at that price range. Personally I would drop the price by 5k every three weeks until the house sells.

Back to the upfront decisions. 

5. Who decides when price drops happen? 

6. What is the price point where you decide to turn it into a rentall, this could be a significant point of disagreement if you have a potential 10-15k profit split expectation build in for your realtor, thus needs clarafies. 

I personally would keep this cycle reasonably short, like 90 days no contract it becomes a rental. Three weeks before I would drop to the lowest I would sell for before it becomes a rental. 

Some thoughts for you to consider.

@ronda robb

Phone just died, wiped out a rather lengthy response apparently.

Ill respond with some details to consider tomorrow. Looks like the partner is getting a heck of a deal here. If there is little profit for you, she still makes out well. One point, if she gets paid commissions I would definitely put in a cost of money. In case something goes not as planned, at least you get a return in your money. Nothing worse then putting up 60-80 k and six month later you get no return while your partner made money on the buy and the sell and the husband made money on the rehab. 

 Does that attempt at insulting Brian Gibbons make you feel bigger?

I see you have two posts on the site, have you even looked at Brians contribution to the site, and the depth of his understanding and knowledge real estate law. He is probably better versed in Ohio real estate law then 98% of the so called wholesalers in the state.

I was at a local real estate conference a month ago, sat in a session where a trainer was doing a presentation on lease option/rent to own, although I am not interested in doing that, I am a rehabber and wholesaler. I was impressed with the guys knowledge and seeming integrity of his program.

I mentioned it to a friend I thought would be interested in the program. Come to find out he's an affiliate of Brian Gibbons.

I don't know but I suspect this guy from California is involved in more wholesale and creative finance deals in Ohio then 80% of the combined "wholesalers" in Ohio.

I don't know Brian and he plays a very different real estate game then I do, but I have always appreciated his depth of knowledge and explanation of his viewpoint. He has made massive contributions to the site.

If you disagree with any of his points, and you make a rational counterpoint or argument, there can be a debate that will give people insight, but snide comments from you dont make Brian look smaller, and doesn't elevate your status with any of the regulars here.

We welcome you to the site, it is an awesome tool to learn about real estate, and we encourage you to stick around and participate, by providing examples and solutions others may not have thought of. The idea of partnering with someone with a licensed is such an example.

 If it was a sweet deal would i definitely buy them up. 

We put four houses on over a three week period in one neighborhood. Two sold multiple offers the first weekend,  other ine took three weeks, we have six showings this weekend on another, see if we have offer by Monday.

We have two more under rehab in the neighborhood. It's a highly desirable area,_good schools 140-175 price range.

If you had 5+ showings the first weekend on your other one, i wouldn't worry about flooding the neighborhood, if you only had one or two, id be more concerned. 

Have your realtor run comps and see how many houses sell in that school district in a three-month period, in your price point.  I suspect your five will make up a small % of sales and if yours look better then most non rehabbed houses, you don't have too much to worry about.  May have to worry more aboutt getting them done, and making sure you considered the extra holding costs.

Likely your finished houses will come on the market  a few weeks to a month apart, in our area that would not be a problem to sell them, as there is a real demand, lot more buyers then good houses. 

Other option, you could probably sell a couple wholesale to other rehabbers, make a few k, quick.

Good luck.