All Forum Posts by: Kira Volpi

yes I am aware. I am looking for a new agent. Thanks

Can anyone suggest a great agent to help me protect my property?

The problem I see with your scenario is it is more feasible to hire a contractor and just pay them. If the investor (the money guy or gal) is putting up the money to purchase the property why wouldn't they just hire someone to rehab it? Then they do not have to deal with a partner and potential partner problems, and not have to split the profits.

I posted a while back when I first joined bigger pockets about this very scenario. I had a contractor I was contemplating working with. He wanted to get paid before the sale of the property. I was anxious to get started and because I was new to the area I contemplated it. I was talked out of it quickly by this group.

Personally, I wouldn't partner with anyone unless they have skin in the game.

I would go on Craigslist and buy a new one. They are cheap and if they are nice tenents and you want to be a nice guy (which I think you do and I would too) just replace it.

It would be unjust for me to answer that question because comps vary depending on state, city, zip code, etc.

Have you applied the 2% rule?

If you are making a positive cash flow with a property manager since it's in a war zone, I would think yes.

If you are having trouble renting it perhaps you are charging too much. The appearance has little to do with it. You've got to rehab according to what market rents will yield.

great article. Thanks Jeffrey!

Thank you all for being so protective and that is what I'm getting here. You are really looking out for me and I really appreciate every bit of this input.

I've gotten a lot out of these posts and have come to the conclusion that I should and would rather have him put skin in or just pay him a bird dogging fee and hire him. You all have brought me to this conclusion and although I really was hoping to hear something else I kind of knew this was the intelligent thing to do.

David, thank you for your objective opinion and referral to J Scotts book.

J Scott thank you for playing devils advocate.

Tony Reale thank you for a terrific analysis and a contractors point of view.

Thank you all. I'm so impressed with this community and grateful to be a part of it.

In closing, if anyone knows a contractor in the Kansas City Missouri or Johnson County area Kansas that is looking for a "true" partnership, please feel free to refer them to me.

Grant it. It isn't the BEST scenario and I know that, and stated that above in my first post. But it is what I'm willing to do.

I am getting a lot of the opinion a good split is 50/50 if he does work at his expense but no opinions of what a split should be if it isn't.

Yes I will be paying him and his crew. So keeping that in mind does someone have an idea of what a good split should be that is fair?

I do appreciate your input regarding my risks. I've weighed them and have calulated an alternative if he doesn't follow through.

Now it's just a matter of fair numbers.

Any thoughts?

I have read several posts on this subject but none I could find that spell out my potential situation. Here it is:

I'm contemplating a partnership with a contractor.

I would provide 100% of financing and rehab cost of materials.

He would provide finding property

Rehabbing the property

However, I would have to pay him for his labor and his crews labor.

I know that isn't ideal for me as a funding partner but here is what I think he can offer me at least for the short term since I am new to this area and don't have a team or knowledge of areas to invest.

He can find properties that he has been doing as an investor himself. He can, if he is forthcoming about his true costs, provide better prices on materials etc.

I am weary about him not having any true skin in the game but it is a risk I'm willing to take since the property will remain in my name and the price of the properties could be potentially low enough so if I loose it won't be huge money.

Looking for input and suggestions of what a "fair to him and to me" split would be.

All input will be greatly appreciated and "YES" I would love to hear from contractors as well.

Thanks!