All Forum Posts by: Jay Krietzman

Howdy gang!

In Oregon here.  Wondering do I need a Title Company or RE Attorney? Also does anyone have a good referral they would like to share? 

Any help is much appreciated!!!

Thanks all.

Yeah I'm semi curious to see if thats the situation with this woman or not. I assume thats always a risk with a hoarder.

Currently getting a HELOC set up so I can utilize hard money for acquisition.

Also I've ran some info gathering on the owner and property to give myself a better picture of the negotiations if I happen to get that far. Trying to get a current phone # and mailing address to reach out as the relative mentioned earlier couldn't find or didn't feel like sharing.

So basically the ball hasn't moved very far yet. But I'd hate to rush this when it's not a rush situation only have a simple item cause a loss of momentum or confidence turning the potential deal sour. Stay tuned... I'll update either way I ends up... Dud or not. 

Saw this and I like this but what about people who are more familiar with deal workings... If I was to was to propose that YOU(reader) get in on the action and help me fund my deal, what would you like to see from me about the potential deal... Thank you for this reply a long time ago @Nathan Brooks

Nathan Brooks Real Estate Investor from Kansas City, KS

replied over 3 years ago

@Lindsey Turner if you are first asking family members, I think the simplest most easy to understand documents are best. They are investing in YOU. Now, you have to understand what you are doing, and be able to give them their money back too!

I'd have it clearly laid out:

1. You guys know we are learning/building/growing a real estate business

2. We would like to partner with you family member and _______ is how we are going to make it worth your while (partner in the deal, % return, interest rate ... don't be greedy, make it worth their while)

3. Here is an actual deal 123 main street, where we would offer X ... put in Y and make Z ... or rental 123 main street, make ready ____, rents for _______, and we would be netting ______.

4. How do they get their money back? ... this is the most important question ... exit strategy to get them out of the deal ...

Hope that helps.

Here is another question that I'm sure has been asked before but maybe times change...

Besides say the BP Reports of the deal analysis is there anything else that would be smart to include to private or otherwise lenders and or partners, in a nice presentation folder or the like. I figured the following:

Comps 3-5ea 

Maps, Crime data

Maps, School data

SOW for Rehab???

Thanks in advance for your thoughts!!! 

@Jay Hinrichs - Thanks. That's what I figured. I just see other posts about people looking for partners and such and wasn't sure if that was necessarily a wise choice. I suppose though it would only take getting burned once... lol. 

Side question:  Couldn't someone else (say potential partner that you attempted to acquire) just go to the seller and say if Jay Krietzman doesn't manage to close the deal and the contract expires i'd be interested in buying it? In essence just cold shoulder a struggling newbie and wait for them to fall through on the contract?

As a new person to REI and this Community this may come off as a stupid question but I have to ask to gauge the response. When posting details on here of potential deals and such my assumption is to keep the details private as you don't want to get beat by your friendly BP neighbor. ;) With that being said when dealing with trying to find partners on deals and such obviously you want to provide details but you also want to protect your interests... How does one accomplish both. Even vague details to a savvy REI would be a dead giveaway. I mean if its in "my area" and I was to get certain vague details I would probably be able to pin point exactly what was the subject house. (Granted I leverage my ability to use technology and research like crazy so... maybe everyone isn't capable of this) Obviously once you build trust with a certain few individuals but when you're new and know no one..... ? Just curious how you all accomplish this. Thanks.

@John Woodrich - Also I'm not one to waste other peoples time... I guess in my own perspective that most of the people who would be experienced in RE and estimating rehabs are probably busy and if they are on here every other person and their best friend are probably asking them already if the want to partner up and unless you have real skin in the game or a track record of success its probably next to impossible to get someone to take you seriously.... then if I do and lets say I finally reach this potential seller and she's like "Actually no we're not interested in selling we are moving back in (or whatever situation) " then I say to my 1 out of a hundred lender/partner "Oh, never mind.... fell through." Will I be able to get them to give me the time of day on the second go around? You see what I mean... 

There was a point in my life when I was a machinist. We told all FNG's (F*ing New Guys) "You have two bags... A bag of luck, and a bag of skill. Make sure you fill your bag of skill before your bag of luck runs out."  In this case I have a bag of experience and a bag of goodwill.... I want to try and fill my bag of experience before my bag of goodwill runs out. You're only a newbie for so long before your just hopeless. Lol. 

Maybe .... Probably just being naive but that is why I started this thread...   :D

@John Woodrich - Yeah I can see your point and agree that having your ducks in a row would be the better option. I just feel like in all my "Newbieness" that this is a what came first the chicken or the egg situation.

If I need to have the financial backing of a lender/partner in order to approach seller, and in order to get that don't  I need to be able to show numbers to a potential lender/partner, and I can't make contact with seller until I am ready and my ducks are in a row how can I get a rehab estimate so my numbers are accurate, so I can present those to potential lender/partner to sign on board to get my ducks in a row so I can get into the house to see what the rehab will be. 

Do I just wing it and go with a generalized assumption like a best case/probable/worst case scenario and get my lender/partner to say if rehab costs are estimated to be in the best case/probable scenario then were clear to go other wise the MAO would need to be lowered to reflect the increase in rehab?

Hope that makes sense... 

@John Woodrich - I have no experience in estimating rehab costs. All I've done is read almost every one of the BiggerPockets published books. So whatever is contained in there I have read. I have yet to put any of it into practice. 

As far as funding. No I am not able to cover the whole thing... It would have to be a hell of a good deal if I was to. I figured I would line that up if I could get a commitment. Worst case I wholesale the thing. But I doubt it would come to that. I really need to see the inside though to get an idea. outside doesn't look half bad. Good neighborhood. Schools close by. Parks close by. Low crime. Rent for comps in the surrounding looked good. 

I'm not going to learn a ton more by reading I either need to throw myself to the wolves or get taken under someones wing and the I'm not one to burden someone by my inability. I'll figure it out. Also the way I look at it is if she wants to deal I will probably pop on here asking for a capital partner and hope I can find either one local who has a little experience estimating rehab costs as well. I figure that if the deal is sweet enough though... (big if) then there might be padding for my inexperience.

Thanks for your comments.

@Ola Dantis - Thank you for your comments that helps. Letter of Intent is what I was looking for, couldn't think of what it was called.

@Chris Pohlson - I've tried calling the landline that was on public records but no one answered which makes sense as they don't live there. My relative has the number supposedly somewhere ... waiting on him to come through for me. But also figuring out the worst case scenario of he can't find the number.