All Forum Posts by: Emily Simmons

@Stuart Udis Those are good points, thanks! I know there's not a monolithic rule; I'm looking for guidelines and principles. I'll definitely keep what you said in mind.

@Andrew Postell Also good points, thanks!

Quote from @Chris Seveney:

Quote from @Emily Simmons:

I'm curious who has done this successfully in the past and can offer tips on the Do's and Do Not's so that both sides win.  I've heard a couple times that someone has had provided the sweat equity with their partner just offering the capital for a 50/50 split.  One person said they got the short end of that stick and another said it was a great launching pad.  I've heard other's say they prefer to essentially structure a private loan with the capital partner vs. any percentage in the property (or business).  No nitty gritty details were given, however.  So what's fair for both parties?  If you're doing all the work, should you take an extra percentage for that?  Or get paid as an employee before the rest is split 50/50?  

What's worked for others and what hasn't?  What are some red flags to watch out for on either side of this kind of deal?

Thanks for any insight!

 50/50 is probably most common scenario. The key / red flags are really based on how this venture is setup. You ALWAYS want to play the worst case scenario out in your head and have that conversation with your partner before it happens and have it in the agreement. It is much easier to negotiate and consider when you know what hits the fan BEFORE it happens than it is after it happens. 

The key is you have a need (most likely lack of funds), and you want to partner up with someone whose challenge is time (not money). Make sure you both have same morals and values as well. If you have different morals or values, I would say pass - I have taken $ from people in the past because I was excited to have $ come in the door, but ended up regretting it and learned my lesson, since that time I have turned down several people because we had different values. 

That’s a great point about values; aligning those would probably prevent a lot of issues.  And yes, it’s a ‘capital in exchange for time’ situation. I want to make this my focus and would be functioning as the manager.  I wasn’t sure how that should factor into a deal.  My primary concern is cash flow.  Equity is a secondary focus for now.

I'm curious who has done this successfully in the past and can offer tips on the Do's and Do Not's so that both sides win.  I've heard a couple times that someone has had provided the sweat equity with their partner just offering the capital for a 50/50 split.  One person said they got the short end of that stick and another said it was a great launching pad.  I've heard other's say they prefer to essentially structure a private loan with the capital partner vs. any percentage in the property (or business).  No nitty gritty details were given, however.  So what's fair for both parties?  If you're doing all the work, should you take an extra percentage for that?  Or get paid as an employee before the rest is split 50/50?  

What's worked for others and what hasn't?  What are some red flags to watch out for on either side of this kind of deal?

Thanks for any insight!

I meant to post this in the STR subforum. Sorry!

So how long after closing could a property be ready for Airbnb & VRBO?

Assume no rehab is necessary. Just to get all the furnishings and platforms set up and get it listed? Would I be looking at week or two? Less? More?

PropertyRadar.  But you will be calling, direct mailing, or door knocking to discuss deals with the owners.  I get calls and postcards all the time for my primary home.

A local realtor with pocket listings.

Wholesalers.

Maybe other local investors.

I’m also curious! 

Quote from @Rick Albert:

… it is okay to stumble, as long as you stumble forward. …

This is amazingly helpful.

Quote from @Kenneth D.:

I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.

You’re not alone, fwiw!  We’re about to experience a major financial setback, and it can be incredibly tough to stay motivated.

Save the money and learn, learn, learn in the meantime.  Then even if after 2 years you decide real estate isn’t for you, you’ll have all that money you can do whatever you want with.

Hang in there.

Thanks for an honest view!