All Forum Posts by: Jason Kim

Elisha I think it all depends on each investors perspective. It really boils down to how much does it worth on each individual investors' time.

This investor that I talked to has some experience but not much so he is willing to do the project and also teach me at the same time for the charge that he charges to any noramal people. But at the same time he is willing to teach me lot of stuffs at no addt'l so he thinks he is doing me a favor from his own perspective.

I can go and try to do everything on my own but all the risks that I'm taking with out any experience, it might be better to make little money and risk less during my internship. Maybe what Don Hines said might be true, you can never make any money if it's not through your knowledge.

Vikram C. what you've laid out looks very detailed and well explained and I appreciate it. After talking to this investor, this thought came in to my mind. These guys just don't buy,fix,sell or rent out. They acquire(free houses) properties my using other people's money! So I am thinking to get inside the group and learn how to work those kinds of systems and learn to be on my own in future.

So still my question would be
1. is this a legitimate business how these guys are doing?
2. if what I've explained above is my goal, is it worth to take that deal and go with it?
What do you think?

Oh and BTW J Scott and Vikram C., I really appreciate your respond to my questions. I've made a note on my computer of what you've mentioned, and I'm pretty sure this will be important to me somewhere in the future.
Thanks.

The main objective of today's meeting with that investor was far different than I thought. He basically wants to use investor's money to buy the property under his company's name and fix it up and rent it out for about 12 months.

After the aquisition under his company's name, would refi the property and take out 75% from his bank and buy another property under his company's name and do the same. He tries to buy at lesast 3 properties with that strategy and by the end of the year, the original property that he bought with my fund, he will flip it at 115k with whatever his exit stretegy would be, and give us 15% return on my investment.

So at the end, his company will acquire 2? properties with my fund and will manage through his mgmnt company. I can't remember what kind of ownership I would hold on the property but I know it's not a full owner ship. And there was something about an insurance that I would hold and couple of more things with that. I will update exactly what they are after I get an email from him later.

I told him that I will bring in more people to invst on this kind of project only if he teaches me how to handle and close the deal in details through the project, and he has agreed on my request.

This meeting was really different than what I had in mind and starting to be little iffy about many things.
Does this kind of investing sound legitimate?
Please share your thoughts and ideas to help me out!

Thanks Malcolm for your thoughts, and what you've mentioned seems pretty reasonable. I'm really not trying to profit so much on my first project and also I don't want to make too little either. I just want him to give me some live educations so that I can learn and be on my own. I was thinking of something like what you've suggested and hopefully his offer is not so much different than what I had in mind. I'm meeting up with him tommorow so let's see how it goes.
Thanks!

Thank you everyone for your time to share some thoughts and ideas. I am in a learning stage and also getting to know people so I'm gonna take things carefully so wish me luck on my first start!
Thanks.
Jason K.

I am a newbie investor and trying to get my feet wet on fix and flips. I know this investor-A who does fix and flips as his main source of income, and I'm trying to partner up with him so that I can watch and learn what he does in details of this work. He's an investor who uses HML on most of his deals and probably does 1-2 every month or every other month.
I am planning to put in 20k-25k to purchase the property and bring in another investor-B(not experienced) who will put another 20k-25k in and let me and the other investor-A handle all of the fun stuffs that are going to be involved on fix and flip.
The investor-A already has his contractors, laywer, broker in his team and he's using me and the investors-B's money to do the deal.
Some of you might say why not just do the deal by your self or with investor-B? Yes I've thought of that and I would want to also, but really I don't know where to start and how to do it with confidence. And because it's my first time, I want to do it right with the person who knows what he's doing.

So if these 3 people are teamed up to do that, what's the reasonable percentage to split the profit?

Home Price : $25k
Material and Labor & Holding Cost : $25k
Investor A : expericed with team (lawyer, contractor, broker etc.)
no money involved / will do most of work
Investor B : no ecpericence / will put in 50% of money / will not be
doing any work
Investor C (me) : no experience / will put in 50% of money / will be
doing some works and learn from investor A

Any thoughts and ideas would be appreciated!
Jason K.

I've read some articles about some realtors working with investors to do the deals along with their traditional retail deals. I've actually thought of doing that and gain knowledge on investing by working with some investors. And later on when I find the niche to do my own investing, maybe i can find more ways to do things the right way with the right people. Thanks for making that point more clear and solid.

Jeff. I appreciate yout input and your thoughts. You've made a very realistic point there and I will look into that also. And Jon, I appreciate your input as well and what you've said about deciding on which way to go seems very important at my stage also. I was reading up on many different ways to do investing but never really chose which way I want to lean more. Actually I wanted to do wholesaling but since it's a fraud to flip it within the short peiod of time(sucks!),guess I have to think more creative to start the business.

I've been studying many strategies about real estate for about a year now. As I gain more and more knowledge about investing, I feel more confident and comfortable to start now and willing jump in and do some deals around my town this year.
But I want to ask people's opinion on how you would start your real estate investment if you were in my shoes so that I have a broad range of options that would fit me best to my situation.

1. I work full time at my wife's family company and can start to work part time at any time.

2. My wife and I have approx. $30k to invest on real estate.

3. I would like to do more of short term investing like rehab, buy cheap & wholesale or sell to retail?, or maybe buy & hold?

4. I know one real estate investor who buys short sales and sell to retail but not sure how to approach to her and work with her.

5. I know few people who can fund around $50k - $100K to invest but not sure how to approach to them and how to use their money.

6. Wholesaling in short period of time is consider a fraud now so what other methods of investing are good ways to start?

7. Prefer to make deals in good school distric areas and better valued neighbors.

Thank you in advance!

I meant " Debt to Income" not Debt to loan.
J Scott thanks for your quick suggestion and btw nice web site!. I do have couple of local banks in mind and maybe around 40k to put in to the acct. Should I open a business acct and deposit the whole or personal would be okay? and what would be the appropriate approach to let them know that I want to do business in future with them?
Thanks!