@Marvin McTaw I thought I would update ya. So after we talked, I scheduled a meeting with my father and mother and showed him a nearly fool proof system that I found to flip houses and make a near minimum 20k per deal, potential into the 50k. The math is sound, and after all the education, reading, and REI meetings I have attended, if I had my own money, I would not hesitate to pull the trigger. I asked my father to make an LLC with me, 50/50. He could put his money and his credibility as an older male with credibility, and I would provide all the leg work and use my education in REI to do the deals. They even seemed to like the idea and said they would get back to me later.
Today, they scheduled a meeting with me, and basically, they said, 'we like your idea, but we don't trust anyone but ourselves. If you have 5k, we will take your 5k, we will put 45k and that way you have 10% of the company. You can help us when we need you, bring us your deals and we will flip them, and you can just help us when we need you.' They seemed to be under the impression that they don't need me and that they know so much more than me in regards to flipping houses because my father is a contractor. We had a discussion which led to my parents talking about our LLC being referred to renovate a basement for someone as extra income. So somehow, our flipping business was going to result in us becoming contractors for word of mouth referrals?
I had to take a step back and realize that unfortunately, my parents just don't get it, and trying to convince them otherwise is a futile point. While I am CONSTANTLY reading and educating myself to become a better person of character, better money manager, and better business man, my parents have never taken classes, and don't read anything. They take no risk in their lives and want to be in control of everything. Everyone who has ever met my parents has always noticed their incorrigibleness, and there is little that anyone has ever been able to do about it.
Anyway, the business part of me says, well, 5k buys 10% of a 50k company, and they are pretty much saying that they want to take all responsibility of the business, and the leg work. They want me to help supply them with the deals, which I have a system in place for that already, so really, not a ton of work. I know that with their need for control and security, they will miss out on a ton of great deals for moving too slowly, but hey, if they can make 10-20k and I am doing minimal work for those deals, then hey, that's fine. It will give my name the credibility since my name will also be on the paperwork. Even as a businessman, I think it is totally crappy that I brought them the idea, gave them all the tools to be able to start this, and they are basically taking the idea and cutting me out a lot. As a business partner,I believe that my resources and inside knowledge of the community of investors and constant education deserve at least 20-25%, even if they want to do most of the work, but I know that arguing with them is a moot point.
From the perspective of a son, I wonder how people feel when even their own parents don't believe in them and don't trust them. I mean, if your own parents, who have nearly 500k in savings and retirement funds don't trust you with just 10% of that, why should anyone else? I mean, with my parents, I should be used to it by now, but every time, it feels like a punch to the gut. Luckily, I've always been successful despite them, and I plan on doing so with this also.
I will probably move forward with my parents at this point since I don't exactly have a better deal on the table, but I plan on selling my promissory note that I have.
I don't believe I have mentioned it before, but I did a live-in flip about 3 years ago and 2 years ago, I was finally ready to sell. The property was in Jonesboro, Georgia. I was in a bit of a rush because I needed to buy my house for my family, so I structured and negotiated an owner financing deal at 11% interest with a 15% down payment for a 15-year mortgage. The best owner financing deal that I have seen out there. The loan currently has no late payments and a 2-year maturity. At this point, the loan only has 55k in principal left, so if I try to sell it, I know I might be lucky to get 80% of the note's current principal. It hurts to have to get rid of such a great note, but right now, it seems to me that I can do more with cash in my hands right now since I have a lot of sweat equity to give.
Unfortunately, I don't have much more options if I want to hit the ground running right now. I just wonder where I can get the most value from my note. I posted it on the Bigger Pockets marketplace, but I haven't had a single reply or message from them, so I am doubtful that I will get a good price on it. We will see.
In case anyone gets interested, here is the link for the note...
https://www.biggerpockets.com/forums/517/topics/373939-selling-safe--55-000-note---11-apr--30-eqty-2-yr-mtrty
Anyway, sorry for the TLDR.
