All Forum Posts by: Marek Berry

These guys manage remotely and use your team of local repair guys for a super affordable price. I know they have a number of clients in PA and NY.

conducegrowth.com

Thanks guys for the insight!

The tagging function isn't working for me right now, so my apologies for not tagging each of you.

I'm actively seeking a home to flip just outside of Austin. It will be my first real estate investment. I've done tons of homework and have one specific question—my realtor is concerned that if I purchase a home in the next few months I will be selling in the fall/winter, when the housing marked noticeably cools.

Do you, smart readers, recommend putting the project on hold until I can sell in the spring/summer? Or is it not that big of a factor?

I would like to move forward now, but want to ensure I'm not setting myself up for failure.

@Account Closed

Good points, thanks for the insight. Because I'm leaning heavily on my realtor to be my eyes and ears and find a good investment deal while I'm out of state I think she will get a small percentage of the profits. 

@Will R. 

I think you're right. I'm slowly reworking the numbers and percentages. The problem with them getting a smaller cut of the profit is that they are less incentivized, a bigger cut and I get a smaller ROI. It's all about that happy medium...

@Kevin Wood I hope I have good information to report in the next 3-6 months. Good luck with your Houston deals, they seem like great cash-flowing properties.

@Kevin Wood Good points, thanks for the feedback. 

We're slowly hashing it out and I think for the realtor it will be a combination of commission and share of profit. I think the contractor will be a percentage of labor cost and share of profit. Both their shares of profit will be smaller than I originally anticipated, but that works in my favor in the end.

@kevin wood 

I'm out of state and will be very hands off. I could indeed just compensate the realtor and contractor, which would certainly be more simple, but because I won't have boots on the ground I'd like a way to incentivize both parties to first find the best deal possible and then complete the renovation as quickly as possible. I don't want to be on the other side of the country worrying about these projects, and I believe I won't if they have skin in the game.

I'm forming a partnership with two other individuals to flip houses in Austin, Texas and need advice structuring our agreement. 

I will be providing the financing, insurance, all the back end. One party is a real estate agent and will find the property and then sell the it upon completion of the rehab. The third party is a contractor who will do all the rehab work.

My two partners are siblings and I'm very close friends with one of them. We understand doing business with friends is risky, which is why I want to have a very clear and detailed agreement drawn up by an attorney that protects us all. However, we are having difficulty in determining the terms of the agreement because it seems like hitting a moving target. We're all okay with a 30% split of the profit, yet there are so many other factors that complicate that number (going over rehab budget, delays in rehab, home not selling, contractor needing $ while working, does agent take commission or not, etc). I'm inclined to want everyone to work for free then split the profit evenly.

I'd greatly appreciated any specific advice (aside from speaking with an attorney, which we will do) on how to fairly structure this agreement.

Thanks so much!

Great, thanks for the info @Will R.