@Jasmine Russell I'll gladly share with you.
So I did a list of people I know. I went over my LinkedIn connections, facebook, and phone and created an email saying I was doing this (I can share the email with you on a DM, but it wasn't anything fancy.
I emailed about 40/50 people, a lot of no's, maybe at another time or just never heard back. But 4 people replied and that's how it got started.
So this is how it works:
1. We reach an agreement. They put up $40k to $50k. I get the loan from the hard money lenders and I'll do all the work. We split the revenue 50/50.
2. I have an excel spreadsheet that a wholesaler showed me where I input the purchase price, the rehab value and the Arv and I can see the amount needed to do the deal and how much money we stand to make. I can share the excel with you.
3. We create an LLC. We use activefilings.com for $100 to $300 and we get the LLC in 3 days.
4. We open a bank account. This depends on the investor but one of the things I tell him is that I don't necessarily need access to the bank account if they want to manage the money and the payments it's up to them. That creates trust because I don't control the money they do it. But once trust is established they will want you to manage all the payments because they don't have the time to be paying what needs to be paid.
5. Once we have LLC, funds in the bank i find a house, either with wholesaler or with real estate agent.
6. When I'm in The House I ask my GC to go to the house and give me a quote.
7. I plug in the numbers in the Excel spreadsheet and if I feel it's a good deal then I share it with them and if they say yes we send the earnest money and get the ball rolling.
8. We wire earnest money.
9. We should have 10 to 15 calendar days to get the funding with the harmony lender so that we can close the deal.
And that is the general process. If you need additional information let me know and I'll gladly share with you.
