All Forum Posts by: Matt Inman

I asked around at work today and as luck would have it we recently hired a few RE lawyers to consult on some property we are purchasing, and on top of that one of them specializes in lending. I emailed her and have an appointment to speak with her later this week.

I also got a few other names of RE lawyers that some other coworkers have used in the past.

So that's one avenue I'm looking at now.

I'm also going to speak with the gentlemen about my concerns and see how that goes.

I appreciate all the advice! Thanks for taking the time to do that!

Jeff S and Glenn Espinosa thank you so much for the advice. I've been a bit apprehensive about posting in the forums, its good to know that there are great people willing to spend time to help out the new guys, such as myself.

I've found a few local REI Associations that meet once a month. I'll plan on attending a few meetings.

I also just Googled Hard Money Lender in my area, I can do some research on the hits I found and see what their rates are.

Matt

Thank you very much Jon and Glenn for the replies. Jon I want to make sure I’m understanding what you are saying. So I can better explain my position.

You’re stating that if this was a typical hard money deal that the interest paid on the loan would be about equal to the profit made on the property. So essentially a 50/50 split.
So my 85K investment is making me 4% on this correct? And this is best case. In your worst case scenario the 95K is making me less than 2%.
If my understanding is accurate I can see how this isn’t a good place for me to be.
Taking what you and Glenn said It sounds like I should come back with a 50/50 split option or just look at loaning the money as a hard money deal at a set percentage rate, how do I determine what the going rate is for the loan?
It sounds like both of you, and probably a large majority of people here, would agree that the money lender has more at stake and should be offered at equal share of the pie on these deals.
I guess I was under stating my worth in a deal like this, since in essence I’m doing none of the “hard” work. He would be doing most, if not all, of the leg work while I just supply the funding for the project.
The plan was to try and do as many of these deals as we could in a year, I’m assuming number of opportunities shouldn’t change the arrangements.

Hi All, I wanted to get opinions on a partnership opportunity. Being relatively new to the REI world I took some advice given here and started talking to people about REI. My neighbor turned out to be a great source of knowledge and I've been chatting with him quite often. He pointed me to another friend of his and I've been talking to him as well about a partnership. He works for a wholesale/rehabbing company and has quite a few contacts in other areas as well.

What we’ve discussed is a partnership where he finds houses in $70K-$80K price range, that with a $15-20K investment can sell for another $20 to 30K on top of that. I would supply the cash for the initial purchase and rehab, he would do all other work involved. I would be listed 1st on the lien on the property as well. We would do an 80-20 split of the profits, 20% to me 80% to him. We are drafting up a contract as well for the partnership.

My questions I have are:
What are my best options for protecting myself and my investment?
How do we handle the partnership agreement?
What haven’t I thought of that I’m going to need to consider?
I have talked to a few people who know him and he has a good reputation as a person who gets things done and knows his business. So I feel good about what he brings to the table.

Thanks,

Matt

Thanks for the post Ned, as a new person just starting out this is exactly how I feel when thinking about getting a mentor. I'll try what you've said and see how it goes!

Hi Pamela, we're a few miles apart but in the same general area. I was reading through your post and must say that's the same situation I'm in. I'm trying to get my head around a lot of the stuff I'm reading here and trying to find the fit that's going to be right for me.

Keep me updated on your progress and if you find any good resources in the area.

Hi Derek, I'm new around here as well. Lots of great information on the site. I read for hours on end. :)

Welcome!

Welcome Nechelle, you sound busier than my wife and I didn't think that was possible. :)

Welcome Engels.

Welcome Aaron, I'm new here myself. I'm reading through the Beginners guide that they put together and getting a lot of good information.