All Forum Posts by: Rick Mapes

Good feedback guys, thanks for that.  I'm still interested in whether or not someone has done a deal like this, I feel like a % stake in the end result could be a good motivator, and I think I could run the numbers and structure the deal in a way where if he hits the budget, he'd get paid roughly the same amount.  But I do appreciate the comments so far, any feedback is good feedback.

Greetings!

I have a contractor that I've worked with quite a bit over the past few years, his work is solid, pricing if fair, and is just a real decent fellow.  

I'd like to get into buying more distressed properties, and bring him into the fold as a partner on the property, so he is motivated to do the work as quickly, and as close to budget as possible.

On to my question - if you were financing a project (and materials) and working with a contractor, what % of net profits would you be willing to split with said contractor?  Has anyone set up a deal like this before?  If so, what was your experience?

Thanks in advance!

Might be a little meta, but I regret not starting sooner in REI, and not buying more houses when I was younger, and had more time and energy. In my market, the medium/long term trend for RE values has always been upward, and the rental market has generally been strong, so it would have been great for my overall financial position to start early, and be aggressive.

Also, relationships are huge in this industry, so get outside your comfort zone.  Ask for references.  If someone does a nice job for you, reward them.  Make it attractive to keep working with you.  You know the old saying "Good help is hard to find"?  That's because good help is always booked up.

Greetings, and welcome to BP!  

Sounds like you're on the right track with listening to the podcast, and posting on BP!  SO much good information on here, and the forum community is super helpful.  I don't think I'm in a position to be a great mentor, but I know a little about the central Iowa market, and would be happy to answer questions if you were to PM them to me.

Good luck, this is a great way to invest!

Will you be getting into RE law or investing RE on the side?   I am looking all over DSM.  But it's a nice market for setting rent prices that cash flow pretty reasonably.  I try to get as close to the 1% rule as possible, and can usually find properties that fit that criteria.  The inventory of houses for sale now is very low, which makes it a bit of a blood bath when a good house hits the market, but by the time you're done with school, the market may be quite different.  Good luck, and definitely poke around BP, tons of good info here!

Welcome Aaron!

You've come to the right place, BP has SO much information to glean.  Check out the free books, and search for anything that interests you.  If you have any interest in moving back to Des Moines, it's an interesting market at the moment.  Low inventory, but rental market is strong.  

Are you wanting to practice RE law, or practice law, and do RE investing on the side?

I'm also interested in a tax professional.  It's implied with the nature of these forums, but specifically one that specializes in real estate investors, and can maximize deductions around the industry.  

Dace!

I'll drop you a line via PM with some info on a good contractor!  It's the least I can do, you've busted your tail for one of my other passions!

Hey Alma!

Welcome to BP, there's truly a wealth of information here.  Try using the Marketplace once you get a deal under contract.  There are a decent number of Iowa BP'ers, as well as out of state folks that like to invest in Iowa for a number of reasons.  I'm not very well versed in the wholesaling side of things, but I do invest in buy/hold properties, so feel free to hit me up directly with any questions on that front.  Good luck! 

Hey Austin,

I think you're going to find exactly what you're looking for on this site!  Might want to look for any RE meetups in the CF/W area, also set up your alerts for all those cities/zip codes so you get an email whenever your area is mentioned in a forum post.  Good luck!  -Rick