All Forum Posts by: Jonathan Barr

Hi you could also employ an experienced agent in the area to give you a value.   Before you go down that route you would want to make sure you want to work with them.   They will most likely expect or at-least chance to get listing from you on the back end.

You need to do your own homework but sometimes an experienced agent that works with investors in priceless.   The will know that area street by street and can usually give a value without looking at comps.   Though I may give that covid discount.  Hope that helps.

I would look into apartment syndication's.   Usually you can get similar returns if you bought your own turnkey property without the liability.   If someone trips and falls on your property they can sue you.   In syndication you are limited partner and wouldn't be on hook for lawsuits or the bank coming after you.

Happy to talk more about that with you if you have any interest.   Otherwise would try partner with experienced operator that can guide you through the process.

@Kevin Medina

Usually with investors when they put up all the cash we have split the profits 50/50. If you are realtor that would not include any commissions you could make.

So I would say 50% is your sweat equity no matter what. That 50% would be split with partner for sweat equity I think you can split the other 50% according to what everyone contributes. From there everyone would get a prorata return based on the portion of equity they provide. Does that make sense?

That’s simple way to do it. Though some investors may want some guaranteed. Maybe you can give them in exchange smaller portion of the upside. Hope that helps.

@Brock Heppner you got it!

I would say go a local meetup/virtual meetup.   Try to be friendly with some experienced investors.  Maybe say if I bring you a deal can we partner up on the deal? This way you can still participate in the profit and also learn at the same time.  Especially in these uncertain times you really want a partner with experience that has hopefully been through a downturn.   This adding to what @Will Fraser commented.

I would suggest finding properties for your client and having them work directly with the listing agent.   That way the listing agent has more of a incentive to work with your client.   Just make sure you have listing agreement signed to give you the listing on the back end.   Maybe they can pay some kind of separate fee even through escrow.  All this is legal as long as everything is disclosed.   As long time flipper in LA we usually always went with listing agent even though we were licensed.   They obviously need to have sellers best interest at heart but as their client they will give you more guidance then someone they aren't representing.   Some agents don't feel comfortable double ending since it can result in a conflict of interest.   That's what allowed us to get more offers accepted. Its a unique approach that has worked well over the years.

I think it's always best to approach owners pre-foreclosure. This mitigates some competition down the the line.  You can be the one to directly work on the owner with less willing other bidders.   You just need approach as someone that can help them with options.   Maybe connect them with people that help them with loan modification first. Keep in mind these people are probably emotional and in tough place, so you need thread lightly.   If that doesn't work for them you most likely will be first person to come to sell. 

I think that's to slim when you take closing cost into account. Like you said values may get hit in the next 6-12 months and you need account for lower ARV for that. This almost looks like a break even to. I would find something with a higher spread.

I agree with what Charles is saying as well.   I would also consider good operators syndication's.  Syndication's are when a operator gets a group of investors together to purchase larger multi-family for example.   I am process of doing a syndication with some friends in Oklahoma City 71 unit multi-family for example.

I think if you are doing a HELOC more short term like 2-3 years I think its ok. Then you can refi into something with better terms. I also think probably what you are getting now historically is good rate/terms. So most likely that refi your looking at now is actually pretty good all things considered. What are the rate terms you are looking at now?