All Forum Posts by: Joshua Cayton

@Jerryll Noorden Thanks! I can't be helped if I don't lay my struggles bare.

@Braden C. That's good insight. It would be good to prescreen the less serious.

Here's an exciting update. I got my first call! It's definitely not what I expected. This guy called and asked why I want to buy his rental. Turns out he owns over a hundred in the area, and is looking into a multiple unit deal right now. He gives the strong impression that he wants to teach someone what he knows, and says he'll see if anything in this deal could work out for me.

I'm an engineer, so I'm prone to analysis paralysis. This was a powerful demonstration that action is more important than anything else.

@Sean Ybarra because I just started and don't know what I'm doing. I heard they get higher response rates.

I was going to start sending out some yellow letters to properties I identified while driving for dollars. I have my home address as the return on the envelope. Is that stupid? Is it something I can let slide for this first stack? I don't want someone to see I'm making money off them at the closing office and show up at my door.

Thoughts?

I appreciate your responses.  I tend to undervalue my part in things and I wouldn't have guessed I'd get a 50/50 split.

I'm currently working on building a management company that I could have employees run in the future. Whether or not it is worth the effort is still up for debate. Management companies don't seem ultra profitable, and cash flow seems like a real problem in the early stages.

Would this split be different if I decided to hire a management company rather than do it myself?

My investor friend is kind of weird. He does all his real estate work himself, and only buys properties in a small area around his house so he can collect rent on his bicycle. He doesn't background check anyone. Rather, he interviews everyone in person and judges their character. Apparently he has a flawless record with his method, because he has told me, "dude, landlording is eeeeeasy." Did I mention he is kind of weird?

Here's my deal. I'm buying my first house with intent to house hack and accelerate my savings. I realized I knew someone who had done some real estate investing, so I called and asked what he thought of the deal. He said it was good, and was excited to hear I was getting into the game. He also told me that if I could find a 1% rule rental property, fix it up, and manage it, he'd get me the money to pay for it outright. Nice.

So I would provide all the labor, and his posse would provide all the funds. What would be the split here for cash flow and equity?