All Forum Posts by: Joe Christoff

As I've been telling more and more friends and colleagues about my REI journey, I've gotten more and more offers from these individuals to be money-partners in future deals. While I'm not quite ready to jump into partnership agreements, I'm interested enough to explore how a partnership deal might work in the future. What I'm hung up on is how to make a deal work so that it produces a satisfactory rate of return for the money partner.

Example setup:
Person A is time & energy partner - no capital contributed, will be finding the deal and managing the property. Person B is the money-partner - will put up 100% of cash for the deal (ie. no financing). Everything will be split 50/50 and both parties agree not to sell until property doubles in value. Both parties on deed as tenants in common.

Putting myself in the money-partner's shoes, even with the expectation of long-term property appreciation, I would want some immediate return on my cash invested. Assuming a required rate of return of 5% (comparable to high-yield savings or a CD), the deal would need to yield a total CoC return of 10% (since everything is split 50/50).

I'm stuck because while playing around with numbers, achieving this return seems improbable if not unrealistic. Yet it seems others have figured out a way to make these types of deals work. In this example, would Person A forgo a claim to any profits until they are above 5%? I'm hoping someone can help me fill in the gaps on what I may be missing.

@Kenneth Germann check out Rentcast. They have a handful of endpoints for property data, including an ARV endpoint. It's a little pricey, but it's been my API of choice thus far.

Once you get an API key, you can use their documentation page to test out the API (or just use Postman) before building out any scripts or apps.

I had the same objective as you and have found Rentcast to be a good solution.

Appreciate all the responses here. Sounds like my thinking is inline with the broader consensus.

I was listening to this episode of the BP podcast that discussed which renovations & improvements for flips and BRRRRs are the best to add value to a property. One of the items that was mentioned was landscaping and that 100% of the time this is something that is invested in. This was in the context of adding value when selling a property, and it got me thinking how this translates to LT rentals.

I have a 3/2 single family LT rental in a C class neighborhood in the Charlotte, NC metro area. My thinking is that as long as the yard looks like a yard and can function as a yard (ie. junk-free, has grass & dirt), then it doesn't make much sense to invest heavily into landscaping like re-sodding or other projects. For this specific property, my current assessment is that while there is definitely improvements that can be made to the landscaping, for the neighborhood it doesn't make much sense to invest in it.

Curious what others have experienced when it comes to attracting tenants in relation to investing in landscaping for LT rental properties.