All Forum Posts by: Michael Bennett

Hello BP,

I have a situation on my hands and I want to know the proper way to go about entering this partnership.

I have a business partner who purchased a house for 5k at the auction. The property appraised for 52k.

We estimate that the repair cost to have the property rental ready will take about 28k. The bank has offered to loan me the 28k to rehab the property with a 15 year term loan with the first 6 months (repair time) being interest only payments.

Our agreement is to rent the property for 2-3 years and then sell the property. The home is located in Tulsa, Ok in a neighborhood that will definitely increase in value as it’s in the midst of being revitalized.

My question is how should the agreement be arranged. We have basically agreed to just split everything 50/50. The loan and property will be under my business. So once the payments are made each month from the renter we will split the profits equally and then once we sell we will split the profits equally again.

Are they’re any contracts available with the language available for this particular type of partnership and is the 50/50 split appropriate even though all of the risk (loan) is under my business name.

@Cynthia Rodriguez do you have a list of the properties?

@Joseph Abbott me personally i didn’t, unfortunately I’m not the creative one in my partnership! Lol! My my business partner is seasoned and he’s the one that usually picks the fixtures and things of that nature

@Bill Goodland i don’t think I’m able to post pictures die to having a basic account. If you know how i could post them I would be glad to post them or I could email them to you.

@Brady Lamprecht yes sir!... how is your rental property doing at the moment?

@Khaled Helmi believe it or not there was not too many mistakes during this flip. My business partner has quite a bit of experience and he has a mentor that guided us along the way. The only set back was the inappropriate footing by the previous owner which caused us to do a complete rebuild of a portion of the house. It affected our budget to where we had to change some fixtures and things of that nature at the last minute. Other than that, the entire project from purchase to sell was about as smooth as it could get in this industry.

Hello @Janikka K. White. I currently have a renting property in North Tulsa with a section 8 tenant. I’ve been owning the property for about 6 months now and so far so good. If possible I would highly recommend section 8. There’s nothing like guaranteed funds every month.

I was able to finally close on my first flip property!! Details below:

The property address is 239 E Newton Pl, Tulsa, OK 74106. We purchased the property for $27k at the Tulsa yearly Tax auction in July of 2018.

The bank appraised the property at 200k and provided out private investor with a line of credit of 105k. We did a complete gut job and had to completely tear down a portion of the house and rebuild it due to poor footing on a previous job. We ended up going slightly over budget in renovations at about 110k. This made us all in at roughly 140k give or take.

We listed the property for 210k in November 2018 and we had the house under contract by February 2019 for $195k. The house finally closed on 4/30/2019 which made my first investment on a flip property a success netting my business partner and I, and or private investor about 55k before any closing costs plus other fees.

Check out the property at: https://www.zillow.com/homedetails/239-E-Newton-Pl-Tulsa-OK-74106/22148200_zpid/

Current Projects:

1342 N Denver, Tulsa, Ok 74106

Purchase: 50k

Rehab: 40-50k

Projected Sales Price: 160k

4242 S Norfolk Ave, Tulsa, Ok 74105

Purchase Price: 120k

Rehab: 100-120k

Bank Appraised: 350k

Mahmoud Real Estate & Investments LLC... Venture Investments Group LLC... Greenville Properties

@Tracy Streich we ended up selling the property for $195k and it closed on 4/30/2019. I was surprised we were able to sell it that high but definitely grateful that we made it happen!

@John Burg welcome to the wide world of real estate investing!