All Forum Posts by: James R Dean

I live in the triangle of Springfield/Quincy(Hannibal)/St Louis Metro and was looking towards Springfield and surrounding areas to invest in multi-family and eventually commercial residential. Are there any REI's going on in the Springfield, Illinois region to meet/greet and interact with like minded individuals and trades people? I've searched BP have come up empty. I have talked with some realtors and it seems property is moving, but haven't connected with other investors. Also would be nice to find quality crafts people for repairs and maintenance. Would be willing to help start one if none is going now.

@Curtis Mears Thanks for the input. So a property manager gets somewhere between 8 to 12% I suppose. What would a birddog get by bringing the deals? I've only done my own deals, so looking to expand somehow in other ways. 

@Anish Tolia Thanks Anish, this has a very interesting exchange. I've learned a lot in a short while. I have obviously much more to learn. You all have good points and interesting takes on different ways to look at things. I'm saying only the down payment comes from the investor, I have money but just not in this particular scenario. So repairs like roofs, and furnace etc will be covered 50/50 or whatever arrangement set up at the beginning. Hopefully my due diligence and rehabs if needed are spot on for the most part.

@Darius Ogloza Thanks Darius for that. Only the down payment is the investors and the payments come from the asset. So, yes trying to find value in each input as to percentage of value of the whole. So may just borrow the private money and do the investment rather than figure out the equation of percentages for now.

@Joe Villeneuve Thanks Joe, that's what I was thinking, I was putting a lot more in than the investor and their's is all up front. The longer it goes, the more I'm putting in. So find the value of their investment, and value of management, and value of finding the deal, etc and break it down into percentage of value to find proper shares, or if they want total passive, just borrow off them at a reasonable interest with balloon clause and keep the deal myself.

@Cindy Carriger Thanks for the reply, I can get loans in my name and have on brrrrs undervalued. I'm looking at some nicer houses move-in ready to build quicker and don't have the 50k needed for down payment and closing. My plan had us both on Title, just tenants-in-kind(may be using wrong term here) so we aren't partners needing to file taxes together. Probably be easier to borrow cash from investor than figure out partnership agreement.

I have a couple BRRRR's and am looking to partner with another investor that is not interested in day to day dealings. She has experience but is older and is looking to slow down some. If I find deals and run the property management part, finding tenants, managing property, etc., and she would finance the down payment and the loan is paid by the house, is it normal to assume a 50/50 split of profits or what would be a fair share in this case. I am doing most of the work, and they are providing all of the money. Basically, Investor brings the money and I bring the deals and manage the property with a tenant-in-kind title on property. That way we are not technically partners I believe and don't have to share a tax return I understand. I have better deals than I can afford at this time. Thanks in advance. Other choice is to just borrow from this private lender and not split the profits.

@Priscilla Lakes HI Priscilla, I sent you a message on ideas for you. I wish you luck on your journey. Let me know what I can do to help

@Priscilla Lakes

Hello, where are you looking and what are you looking for? Do you have a preference on an investment strategy? ie. Fix n flip, BRRRR, Buy and hold, etc?

It was a little hard to follow, but it looks good. I notice at purchase you have $1800 closing but show no loan so assuming hard or private money, or cash and $1800 goes to inspection and title work?  

Also your future projections show 2% income growth but only 1% expense growth. I usually try to keep those the same as all things go up and difficult to guess will go up faster. 

Your COCroi is only 5-6% to start bc of the $72k you leave in. That's a lot to leave on a BRRRR, but otherwise seems good if your market assumptions are correct.