All Forum Posts by: John Corey

Most of the time, think of the contact as being specific to a deal. You can work out the high level (heads of terms) with the contractor in advance. No use looking at stuff they can not handle (too big, too much work, wrong type of property). Then, when you have something identified, you can nail down the contract before you close on the purchase. 

Alternatively, you set up an agreement and then you allow amendments for each project. A master contract with project specific sub-contract. 

Keep the first 1-3 deals simple. In case things do you work out and you need to step in on your own. You want something you can handle on your own or something you are really confident you can unload, as-is.

There was an earlier post about resources.

I suggest you go find local meetings. Look for REIAs that you can travel to and Apartment Association meetings for LA based investors. Normally, two different crowds. Be cautious about signing up for some expensive mentoring program. You can learn a lot by spending time buying people a coffee. Only have you have found your feet is it worth considering a formal arrangement where you are paying for advice. 

The biggest hurdle will not be the information. It will be the motivation once you realize you have to 'kiss a lot of frogs' to find your first deal.

You can use the online forums for specific questions, gaining perspective and technical details.

The risk to the lender is too high when the borrower has zero skin in the game. Too easy for the borrower to walk away.

Does the seller need cash now? 

Do you have any preference for where you are going to move to in the USA? Different strategies work better in specific locations. In addition, you may pick where you live based on criteria that have nothing to do with real estate investing. 

A different angle is to focus on strategies which play to your strengths, your past experience or your network. You can more forward with more confidence when you apply existing knowledge or skills.

Think about how long it has taken you to create your initial cash pile. Be slow to commit to spending it. It will be hard to replace if you jump in and make rookie mistakes. There is plenty of time to find great deals and there are always more right around the corner. You do not need to rush the first deal or two.

Nate, 

What is the focus of the software company? I am an old school tech guy who has been investing for a long time. I started at 24. Older now. LOL.

Alex,

I like that you want to grow and up your game. 

At the same time, be careful about chasing a bigger pot of gold and losing the one you already have. There is a difference between growing the business and shifting the risk curve in the wrong direction.

Jeff, Interesting story and thread.

Clearly something holds you back. And it is not just the cash.

You can overcome the issue if you want to get there. After the first deal, it should be easier. Keep the first one simple, local and something you can exit after some improvements. Like a first date, get it over with so you can move on.

Best? Hard to say.

Think of it this way ...

You and the contractor die a horrible death. Together in a pickup. 

Your estate and his estate are trying to pick up the pieces. Are the documents clear on who is responsible for what and what each party owns (percentage of the deal, etc)?

Or, one of you faces divorce, is disabled, or get sued for something unrelated. Wil the agreement allow the other side exit cleanly and finish what needs to be done?

A JV agreement is rarely need when everyone is happy and on the same page. It becomes critical when it becomes clear the two sides are not on the same page.

 Lots of good advice in the thread.

For your online profile, use a headshot which is a very clear short of just you. Here is how the test to know if it is working. If you show up at a live MeetUp or other networking event, do the people who connected with you online recognise you in the room?

Use the same image on all your SM profiles where you are talking with property investors. You never know who your future JV partner is. And you do not know what platforms they are using. Just make it clear it is you.

Careful now. A real estate investor with a trashed credit file will be dead in the water when it come to future financing. 

While it is true that a personal loan might be harder to collect on, that does not mean the borrower can ignore the request.

Earlier in the thread it was suggested that you negotiate with the lender. That is a great starting point. You can even offer security to improve their situation. Not where I would start. Just stating you can move them from unsecured to secured. 

You also need to re-think your strategy and how you use credit. It might make sense to sell something and pay the unsecured loans. To get things on more stable footing.