All Forum Posts by: Andrew Ralston

Hi BP Community!

I am looking to see if there are any wholesalers in the Seattle area that I could connect with? 

Additionally, how do you locate wholesalers? 

@Shiloh Lundahl thanks a ton for the advice. This makes sense and is in alignment with some of my thoughts as well. We are in the final stages of working on a partnership agreement and when talking to him last night I brought up this concern about not having rights to the profits and he agreed that the partnership agreement would act as the legal document for both of us in the deal. 

Hi everyone, I am at a crossroads and would like some advice. 

I currently am looking to start my first project and have an investor that has done several deals over the last several years and has funds he wants to invest with me and my project in the Seattle area. I work in construction management and have personally remodeled my home and added a fairly substantial garage addition taking the project from the permitting process all the way through final inspection doing ALL of the work myself start to finish (concrete foundation included). The partnership scenario summary is listed below.  

1. He will be the money behind the project and I will be doing all project management and self-performing any work that I can. 
2. Up to $200k for all project costs. 
3. Wants 50/50 split of profits. 
4. His LLC will be the sole name on the title.
5. Wants 11.5% interest rate on all funds invested prior to profit splits (this is primarily due to the high risk of me running the project with little experience). 

What I am trying to determine is should I go with a HML instead so I can keep all of the profits with only a slightly higher interest rate than what he is offering? My concerns with going this route are that I wouldn't have my partners vested expertise in the project success to turn to if I face a situation that I don't know how to address.

Any help or advice would be much appreciated!

Speaking with other individuals they noted that something more in the range of 6-8% with a 50/50 profit split would be more reasonable. Do you agree?

This would also be a per annum interest rate of 11.5%. 

So the recommendation I am hearing here is that no interest on funds invested should be allowed, and the return comes from splitting the profits?

My investment partner wants an 11.5% interest rate on all the money they invest in the multi-family property we are attempting to acquire. This is prior to splitting the profits 50-50. Is this reasonable? It seems the profit would be the “return” on the investment. 

Hey all! 

I live in Seattle but am looking to expand my real estate business to Chattanooga and also move there. Does anyone have a line on a solid agent/lender in the area who can help me with locating a great property that will suit my needs since I am so unfamiliar with the area?

I will be switching banks for my personal banking and am starting out in real estate. Does anyone have any preferences or recommendations on specific banks that have more benefits or programs that are beneficial for real estate investors? 

Thanks @Danielle Jackson. I am looking for more like specific things to look out for, or to make sure and include that easily get missed in these kinds of partnerships.