All Forum Posts by: Jeff Nobert

@Asad Shaikh

Everything you said makes perfect sense. And what’s great is this is something that all parties want to do. I find it interesting your a realtor as well if I’m reading your profile correctly. I’ve wondered if it makes sense to bring the realtor into this as well.

The realtor has a knack for finding these types of properties and is very good. He flips and invests when he cans. Keep in mind as we start, we are limited to my financing amounts. Which right now will most likely sit at around the $30-$60k for all purchase, closing and loan costs/payments while flip is being done. As a realtor yourself, do you feel there would be more motivation for a realtor, to join in the profit sharing aspect of something like this? Or would you rather just make your commission instead?

My philosophy is this. If I can get a team of both a realtor/contractor to move forward with this and share profits appropriately, would that not help in completing significant deals?

Just recently I began my investing career and started off with 6 doors. I was able to purchase a 5 unit through a land contract when I only thought I would be able to get a duplex. Then I purchased an SFR in the same month. As of now I'm cash strapped for rental purchases as I'm going to let those brew a bit. So I need more capital.

I have or will have shortly, access to funds that I will only use for a flip situation. Which in turn will create more money for my long term goals of pouring every last cent I have into monthly income properties. As of now, this will be my families and mine retirement long term. But dang this RE living is addictive. My word!

So now I am actively using the same agent (who is seriously awesome!) to find flip opportunities. I have a slew of properties which show potential, that I could pull the plug on right now from him. I’m working with a contractor who is also a long term friend, knows the city and area extremely well and wants to partner on some level. He’s very good at what he does and has scaled his own business very effectively. We plan on splitting the profits most likely based on percentage invested. I will handle financing. He will handle labor and materials. Split will most likely go down that same percentage of financial input into the property. I live out of state. Realtor and Contractor live in the area where properties and work will be completed.

I’m curious as to the BP community’s perspective on this. What to look out for? What to avoid? Suggestions? Cautions? Encouragements? Comments on strategy. The real stuff. Thoughts?

Originally posted by @Joe Villeneuve:

Originally posted by @Jeff Nobert:

@Joe Villeneuve This is very intriguing to me, this concept you speak of.

I am just about to offer on a 5 Unit Multi Family RE property myself. It’s a Land Contract Situation and my realtor and I already know there are multiple offers. If I could offer slightly higher then asking, negotiate his requested DP down from 30% to say 20-25%, my initIal all in is lower. Do I understand that correctly? Then my rents will cover the cost of the Land Contract either way, giving me more monies to spend on upgrades. Which will in turn allow me to charge higher rents.

Is this the concept you are getting at?

 Well done grasshopper.

 Joe. I have to give you an update on this conversation. With a pinch of background. 

I have wanted to be a RE investor ever since I was 16. My good friend and I would drive around looking at apartment buildings, count the units and calculate the ROI and NOI just for fun. We had no idea what those terms were at the time but that is what we were doing. So it's been in my blood for a very long time.

Fast forward now to me being 42, running an HOA painting/minor construction biz in CA, etc. started self learning about out of state properties as opposed to buying overpriced in CA. Joined groups. Watched videos. Read posts. Watched videos. Read more posts. Saved what I could. And then saved some more. Made contact in an out of state smart investment city, with a very old and good friend who runs a contracting biz. He suggested an agent. Hired agent who knows investing. Looked for deals. Made offers. Got denied. Found more deals. Made more offers. Didn't work out. Found a solid deal simultaneously to me officially joining BP. (I don't know why I waited so long to join, I usually just listended) Upon joining (same day) I read your response in this post about negotiating DP.

I did what you said. Used that strategy. My realtor was like, (Paraphrased) “Dang, that’s a bold move for your first property, but I like it.”

This morning at 7:00am he called me and stated offer was accepted, amongst many offers he had! Land Contract style. 10 day contingent. I put less money down then what Seller was asking. We also negotiated the monthly payment terms to represent a positive cash flow. But check this out. It’s a 5 unit. I only planned at best to start out with maybe a duplex and I’m now in this thing with a commercial property to start. So Joe. I don’t know you. But I am overwhelmed with gratitude at your willingness to share. Thank you Sir.

Grasshopper plans on grazing the wheat fields for many more morsels. 

@Joe Villeneuve This is very intriguing to me, this concept you speak of. I am just about to offer on a 5 Unit Multi Family RE property myself. It’s a Land Contract Situation and my realtor and I already know there are multiple offers. If I could offer slightly higher then asking, negotiate his requested DP down from 30% to say 20-25%, my initIal all in is lower. Do I understand that correctly? Then my rents will cover the cost of the Land Contract either way, giving me more monies to spend on upgrades. Which will in turn allow me to charge higher rents. Is this the concept you are getting at?