All Forum Posts by: Glen Erickson

@Kyle Pease

An option is to find a property figure out what it will cost and ask for a partner. Someone that will put up all or part of the money. Even finding one or two people that are willing to partner with you could be a good place to start. You may make less money on the flip as you would have to split it but you would still make money and have at least one flip under your belt. That would probably open others up to loaning or partnering with you.

Using the tools here can help you show how profitable it will be. With a partner they may also catch some cost that you miss so as to help you find out if the property is profitable or not.

Of course you would want a contract to make it so they wouldn't buy the property out from under you or, build a trust with them, but there are many people that want to help others get started and may have the money but not the time to invest in a flip.

@Ivory Hayes
A Few Ideas, They may not work but maybe lead you to an idea.

Have you tried a local California bank? Talk to your bank and see what they say. You are already established with them so they may be more willing to work with you than another bank.

If you do the LLC in the state that you own the property, then it would be a local LLC. You would need someone there as a repersentitive. I can't remember what it is called. but they would be the mailing address where all the business stuff is sent and they would forward it to you. The business would have a local address. I know a company that sets that stuff up. I have gone through them and it cost me almost 600.00 a year for their help but it may be worth it for you. A bit more for the initial set up I think but they give help in how to protect your properties etc. Now that I know more I have had more questions to ask them.

One other idea is if you have someone managing your properties, do an LLC with them with a buy out clause, that would allow you to pay them for services but buy them out after 3 years. Not sure that would work but talk to a lawyer and see.
As an example  if you paid them 100.00 a month to manage your properties your buy out clause would be 1200.00. For that 1200.00 they would continue to manage the properties for 1 year. Not sure that would work but again it never hurts to ask a lawyer if it will.

The last thought is talk to national lenders and see if they will give you a Mortgage, Or maybe a line of credit on your properties. A bit higher interest rates but since you own them outright there should be no real issue to it. I don't know if they do that type of thing but it never hurts to check into some of the people that probably are sending you information about lowering mortgage payments.

So what did you find out?
Also do you have a LLC set up in state? Wonder if that would make a difference?

I have to laugh at myself. I wasn't thinking that the amount I have would be enough to be a partner but even if it is only 1/3 of a deal I would be 1/3 partner then. New things we learn as we start out. 

Thanks again for the feed back.

Thanks Kris and David.

I hear people talk about 10 points and 10-15% as just a loan. I was thinking like 5 point only, and taking less of a percentage from the sell. I want it to be good for both parties. Truly if I could make 5-10,000. I would be happy. It seems that would be reasonable. It is about as much as I would make if I did the points and the percentage as just the lender. I guess I kinda want to hedge my bet and not ending up making nothing on a deal.

Thanks for the information Dominic.

Hope to find someone that has experience and wanting to build a long term relation. Both of those can help cut down on the risk.

So some time in January or February I will have some money. I want to partner with someone but not sure on the conditions I should set. I want a percentage of the profit but also want to make money on the money I put in.
What would be a fair offer for me to accept?
Sorry trying to be vague so as to met the requirements of post but want to know where I should start.