All Forum Posts by: Matt Powell

I've seen this on BP many times. Some say since he found the property and will be managing it.. a good 50/50 split is reasonable. Others say if you're using your credit and money and you're taking on all the risk (he has no assets) than a 60/40 split or more would be better. 

I did a deal similar to this .. we split the deal 50/50. He provided the money. I had the credit, RE knowledge and assets to back this up. We both guaranteed the loan. He didn't have much assets but did have cash. It was a win-win for both of us I felt. There are many ways to structure this deal. Like consider taking a preferred return until he has more in the game.   

My reasons: 

> It is insurance for the future.. that insurance pays for potential layoffs (if you're a W2 or 1099 employee), any health issues you or other family members may encounter 

> Freedom! To do what you want when you want! 

> The perks aren't too bad either, you meet great people, have an amazing portfolio/net worth, and of course the tax write offs 

@Delbert Standifer personally I'd structure it so I didn't have to tie up so much money for one deal. $10 or $20k should be plenty. Plus allows you to take the other $30k or so and do it again. .. and again. Good luck!

@Mark Voss .. I am in the Bloomington, IL market. I know Dmitriy and have talked to him about self directed IRAs. I don't think I'd have any more to add than what he already said. However, I would say I could help you in this market if you need someone local and / or some questions!

@Bryan Martin     Just doing a follow up. How is your investing going today? Did you get in or decide to wait? 

Hello Nick..

I can direct message one that I'm pretty sure does property management there. I am in Bloomington and have property here.  Last time I recommended something on here it got flagged for advertisement. 

Thanks, 

-Matt

Yes, it is possible. My last 4 deals have been $0 out of my own pocket. My last 4 deals resulted in 39 units. I have used a mix of seller financing and also other investors money! The bigger your network the easier it is to find deals and/or money. Tell everyone you know.. and everyone THEY know you are in real estate and you are buying! It works!!

Hello Jessica,

Yes there are a few REI/meetup groups here in Bloomington. You can find out more on our FB Pages.. Central Illinois Real Estate Investors and McLean County Area Landlord Association - MCALA. We also have weekly Friday meetups (usually) at Flingers Pizza at 1230pm sometimes earlier.

@Jessica McTernen   

Hello Michael,

I may not be much help, but I'm wondering if you can AirBnB your time share? I'll also ask my friends how they recently sold/offloaded theirs. 

Thanks

Hello.. Yes, I bought a 30 plex in Peki n and a Tri-plex in Springfield.  Still a good job closing on 3 buy and holds. Sounds like you went the house route.