All Forum Posts by: Gregory A.

Oh wow, that was only for half of the duplex? That is amazing that you are still able to cash flow over 400 on a single unit of a duplex.

@Trey Williams so you have to pay the $10,000 you borrowed from family back within 1-2 years, but there is no plan to ever split from your investor. What is his involvement with the property at this point? You also mentioned that he front the bill for the initial minor rehab, did that include the labor costs of performing that rehab, or were you able to do the rehab for some sweat equity?

Thanks for the response!

@Franklin Romine would it be possible for you to give some actual percentages and cash flow examples from one of those deals? 

@Trey Williams you sound like perhaps the perfect person to be able to answer a question I have been asking. How are you structuring this deal to your investor? What is his stake or claim in the deal? Did you give him equity in the deal, what is your plan for paying him back? Are you splitting that cash flow with him? All in all, how is the deal structured so that it obviously benefits you but also benefits your investor/partner?

Congratulations on your first deal and I hope to be posting the same success story soon(Hopefully with less issues for closing).

@Franklin Romine how have you seen deals structured in the past? I am still so confused on the concept and how to make it favorable for a private money lender before I would ever approach one about going into a deal with me or even a local partner that I might come into contact with later on. I am going to a seminar here locally in August and hopefully I can get a solid scope of it then if I don't get some good examples or advice from those who have done this type of structure to a deal without it being a quick "fix and flip" or BRRRR in which they could quickly get the money back out to pay off the initial debt that was lent by the initial investor.

@Kevin Griffin the deals I am curious about are the ones that Brandon likes to mention all the time in his podcasts. I know I am going to do my first few units on my own and by my own financing but by the time I am ready to step into a commercial multi-family I don't think I will have the capital to put in on the property. Is it unlikely that someone would want to invest long term? Wouldn't it be safe for them to invest X amount of dollars and be able to make 8-10% CoCROI, plus have the equity in the property. Essentially taking an 8% dividend on their stocks?

@Charlie John what a good point you make there.  Once I have made enough great deals people will be asking me to come in on a deal that I am able to find and would be more willing to give up interest rates or equity in the deal just to be in a deal with me.  Thank you.

I would still like to be able to hear from anyone who has structured a deal with a private money lender for buy and hold rentals.  Residential or Commercial scale.

@Charlie John I am a new at this and do have some family/friends I could use, but I plan on doing my first deal myself before I get someone else involved. However, I still want the education. So it looks like in your examples you are talking about it is for a short term fix and flip. Have you ever thought about structuring a deal like this for a long term buy and hold rental or is that not your interest?

Also, so that I understand your post, if they lend you the say 100k + closing/rehab of say 12k, you would give them back a flat 123,200 on the deal and then the pocket whatever is left over from the sale of the home? 

On your 55/45 split of net profit however, they were not guaranteed a 10% CoCROI but just that percentage of the split of the profits? Am I correct in understand this? 

Thank you so much for the information this is helpful even though it is not in the type of real estate I want to be in, it definitely gives me an insight to what some investors would find as a "good deal"

I keep coming back to this topic about private money lenders and how to structure a deal to benefit them. The type of lender I am picturing is someone who is just writing a check and outside of that is not involved in the day to day of the property.

For the basics, a figurative property that costs $500,000 that is a commercial property would require a nominal 25% down payment or $125,000. Since I would be the one handling any up front rehab and repairs and also the management of the property, how do you structure the deal such that they feel as though it is a good deal to them? Are they on the title? Since I don't have money in the deal, am I even on the title? How would you split the percentage that either party would own? Since they put down all of the money, do you not own any of the property or are you not entitled to own any of the property? 

I would love to get some feedback from people who are private money lenders or who have used them to get a deal and how they structured the deal. Have you exited said deal, and if so how was it split?

Thanks!

@Taylor L. thank you for the heads up.  I just joined and RSVP'd to the meetup. It would be fantastic to get to know some other local investors and network with them.  Thank you for the invite.