All Forum Posts by: Jeremy R. Henley

Looking for some ideas.  I am confident I can put this deal together but would like some hints.  I have a lead where the owner is motivated to sell and the property needs some work, not a ton.  The challenge is that he is nearing retirement but still has about 2 years to go.  He wants to sell now and rent back.  Being that we are in the San Diego market rental properties are a bit tricky to cash flow without 30% down payments.  I am think there is probably some combination of down payment and owner financing that could make this work but my creative juices just are not flowing on this one at the moment.  I am meeting the owner again soon to learn more about his needs/goals for the future and I know this will help me get to the bottom of it but I would like to walk into that meeting with a few options that may be good for him and me. I would love some ideas or feedback.

I would love a few recommendations for some good folks to work with for re-financing a four-plex in Scottsdale. Time to pull out the cash and find another MF!    

@Jason Basso  That would be great! I am tied up until mid to late next week.  Is there a good time for you on Thursday or Friday next week? 

@Jason Basso, so you take on projects that are construction only, not flips, but keep all the subs as subs and not employing them.  

Our flipping business is starting to take off and we have settled in on a good set of specialty contractors and I have partnered with a solid GC.  We have discussed starting a separate construction company since we continue to get leads for jobs that are not flips.  My quick background prior to real estate was selling in the corporate world and leading sales teams.  My GC has done lots of construction and managed crews and is doing a nice job on our flips which have kept him busy but as our system has come together we believe we can scale up more projects and another business.  Seems like a good way to grab more cash BUT I want to set up the company the right way with proper licenses and insurance, etc. I would love some helpful hints and guidance from the group on taking this step.
 

Thank you in advance for any helpful insights.

@Kevin Keith Beck, here you go.  

I have a deal I need to wholesale as I am already working on several properties in the area.  Purchase  price for this property is $639k.  Similar properties that have been rehabbed are going for $800-825k in the area.  This property is in good condition but it very outdated.  I would estimate 50k for the rehab leaving plenty of meat on the bone for you.  It backs to the St. Marks golf course and is on the quieter side of the course and upside of San Pablo which is a great location.  Message me if you are interested.  Drive by only at the moment as the home is occupied. 

Thanks Justin.  That is basically what we are doing and I agree with yon the LP vs just doing a lien which I have done on different deals as well.  This is what it took for them to feel more comfortable so it was worth it to start the relationship with them. 

Thank you for the feedback everyone.  I am bring the deal, the vetted contractors, experience in the area, a clean track record of on time and on budget and selling for projected pricing to an investor that has limited knowledge and experience but a desire to get into the business.  

I have a potential 100% financed deal including the rehab and I am curious what a fair profit split would be to compensate the investor. The quick deal summary is a SFR flip that should take about 2 months to renovate and then about 30 days to sell here in the San Diego area plus closing time of 30ish days. We are contemplating doing a limited partnership where the investor will supply the funds for purchase and rehab and I am bring everything else, my crews, my knowledge, the deal, my management, etc. The investor has a LARGE line of credit so we are considering the interest on the line part of the expenses as well and would potentially split the profit 50/50. Generally speaking am I being to generous, on par for industry or getting lucky with the deal. I am not a rookie but also would not say I am veteran with 100s or more flips under my belt. Thanks for any input.