All Forum Posts by: John Slater

We use property radar. Costs $50 a month but allows unlimited access throughout all of Cali for foreclosures. 

Hi Jeremy. 12% a year on borrowed money is pretty normal for me, and usually 2pts off the top in addition. However, that would be it for me and I wouldn't expect them to want a part of the deal unless I was borrowing a substantial amount like $400k or more. Even then, I'd expect them to front the money, split the deal 50/50 but not get paid on their money as well. Sounds like a tough deal you are being offered but without any other alternatives you may not have a choice. Hope that helps.

Jorge, Sent you a friend request.  Let's chat, I'm in Rancho also.

Originally posted by @Geni P.:

How does the math play out in my scenario? Does the cost of the partners money come out of their profits or mine?

 That all depends on what you agree to.  Some partners putting up the money may just agree to taking a cut of the profits or may ask for money on their money and a cut of the profits.  As other people said, its often difficult to partner with someone who you've never worked with as the money lender runs all the risk whereas you potentially run zero.  If honest, thats why I got together with a group of investors, learned their systems and it opened me up to 50/50 partnerships but without me using any of my money to fund the deals.  Now I do 50/50 deals and use private money that we pay back with a little percentage on top that comes out of the overall profits before we split it.

Different States have different laws about this but in some states it is legal to file probate for a friend rather than being a relative.  Filing probate does come at a cost $ but then it does depend on the property as to whether it is a short-sale or has equity to decide if filing probate is even worth it.  Could be worth asking a probate lawyer for advice but I'd try to find out if there is any equity in the house first.