All Forum Posts by: Michael Ramos

@Brant Jones

Hi Brant my name is Mike. I have to work that evening I was going to attend the previous meet up but it was cancelled. Hopefully I could attend your next event next time. Good luck, hopefully this one pans out this time.

If it's cool I'd like to pick your brain. May I message you privately?

Take care,

@Andrew Kougl

Thanks man. I appreciate that feedback. I will keep those numbers in mind and I might steal those for myself. I was basically using their same numbers and adding 7% for CapEx. Even still my numbers came out to around $800-$900 cashflow/month.

Regarding the PM, I will take your advice and confirm the rental prices when I interview them.

The benefits that you mention there at the end of your post are great checks and balances no doubt but I have been in contact with (5) people (that I have met through BP since Dec) that have used this company and they have all said nothing but awesome things about this company and their legitimacy. I honestly cannot find anyone that has anything bad to say. It's weird. I should probably check with the BBB now that I think about it.

Thanks Andrew, take care.

And just so we don't get to off topic here. These types of properties (see above) are the reason I created this thread. As a newbie, these seem like no brainers but also as a skeptic, it seems to good to be true. But for the last 3 months or so I have not spoken to any investor that says "this is BS they are leaving out x, y and z so its a scam yada yada yada." EVERY investor that I have ran this across has been more like " Oh wow, well it sounds great but it also sounds to good to be true so be careful and do your do diligence".

So it leads me to think I have analysis paralysis and I just need to pull the trigger and take a leap on a pretty safe bet. Which is why I am looking to gather up between $50k to $100k "family and friends group funding" to pull the trigger on one of these properties. (which is the whole reason I created this thread and not talk about this company).

If there are any Real Estate Lawyers/Attorneys that have ever put together a contract as Evan Polanski mentioned please reach out to me I would love to speak to you.

Thank you,

@Andrew Kougl

Great Question Andrew. Attached is the breakdown of the numbers that they have provided to me for this property.

The one thing that was missing was Capital Expenses. When I asked them about that they told me that when they rehab their properties they (I'm paraphrasing) "should be good to with stand the next 10 years. Where at that point we recommend to refi the property and pull out any money for Capital expenses at that time. Or sell the property".

Let me know what you think.

And not just Andrew! Please anyone chime in with any questions or concerns, I'm all ears (or eyes, in this case).

Thanks,

Mr. @Jonathan Pflueger,

The company is R e n t to R e t i r e m e n t .com. I have had a great consultation with one of their sale reps and I have spoken to Zach (the owner) directly and is very accessible on this site. Since my consultation in January they send me their amazing inventory with all the ROI and Monthly cashflow details that make me wish I had started doing REI 10 years ago instead of last year.

To that point of my experience, I know I'm a newbie, no one has to remind me. I didn't say I just started doing or looking in to real estate last week. I am very up front with it and understand that I don't know 25% of what an experienced investor knows (whatever you consider an "experienced" investor) and just because I own my own house and because I've been reading a butt load of books and hours and hours of BP podcasts DOES NOT replace the experience of actually owning and managing a REI property. Of course. I'm just asking questions here Jon. I'm looking for already traveled paths through this RE forest. And I appreciate everyone that has ever responded back to me here on BP with constructive criticism and knowledge, including yourself with the great sage advice regarding others mistakes.

The types of returns I am expecting are usually above 12% ROI and the monthly cashflow ranges anywhere from $200 up to $1200, just depends on the deal. They buy in up and coming areas with great rents and renovate the home as new (they even go as far as to say that their renovations should last up to 10 years) and assign property managers for you to manage your new property.

I loved your advice in that last paragraph. Thank you for confirming @Evan Polaski 's idea for this kind of "contract" and I have ZERO problem taking less of the "equity pie" to make this happen. Building relationships through an endeavor like this (as a newbie) is what I am about right now (along with teaching people I know how they can make more money faster than a savings account) I need investment people to know I am trustworthy and accessing the trust that I have already built with friends and family is something that I do not want to break doing this kind of deal, thus screwing me 2 ways instead. 

Thank you for your knowledge Jonathan. I appreciate you taking the time to respond. If you have anything else to say after this post please feel free.

With much appreciation,

Mr. @Evan Polaski ,

Thank you for your response to my question and post. I haven't heard of doing a partnership with friends and families this way. Just a few questions and comments I have for you.

• Why would something like this have to work with the commercial side of the bank?
• And how or what changes in terms of me (and everyone else) qualifying for a commercial loan apposed to a "regular" real estate loan?
• So if they own (up to) 19% of the partnership...then does that mean that is the ROI that they will expect to make on their investment? (I understand this sounds like a stupid question but I have to ask it #newbie :)
• I like this "clear legal document outlining their ownership and terms of the partnership." and that they don't have to sign on the loan. This is exactly what I'm looking for. 
• Please explain "...you can outline the upside you receive from your ownership of the partnership," I do not understand this.
• As far as the properties that I am looking into they range from $90k up to $315k, so the downs are anywhere in the 25% range for these properties, not including the closing costs. But regarding the attorney fees I'd just pay those out of my own pocket I guess. Worth it.
• I don't have a well off family or (enough close) friends with money to buy outright and pay them back. Good idea though, I save that for down the road.

Again, thank you so much for your knowledge with this topic. Please get back to me at your convenience. 

Very Appreciative,

@Jonathan Greene

Mr Green,

Thank you for your response, I see you are HIGHLY successful in your own right so please do not take the following as if I do not recognize your accomplishments. I respect what you are saying but I disagree. You don't know me.

Correct, I have no Real Estate Investing experience. But I do own a home. 

I never said I don't have capital to put up for the down payment. The problem is I don't have enough. I would be pitching in myself with everyone else.

All investing is a risk. And we all know (other than keeping it in a savings account/under a mattress) that Real Estate is on the safer side of investing. And as I just stated I am also risking my savings. What do you mean by "Recovery Options" though?

I'm not going back to the drawing board.

As far as dictating terms, I am the one with the knowledge. For those people in my circle, we were never brought up to invest. Me and "my people" are the ones that have been paying you and all the other established landlords/investors rent all these years. I am breaking the mold for the people around me and at the same time I will help them understand the power of investing in Real Estate and why it's better to buy than rent. So when I tell you that I have ENOUGH knowledge and guidance (a mentor) in my corner you're just gonna have to trust me on this, so please indulge me.

As far as what they would be investing in...I am in with a fully renovated, managed turnkey Real Estate consulting firm. They buy in strategic locations where there is growth for the future with high ROI's and Monthly cashflow. Again, MY PROBLEM is getting enough for the down payment for these homes. Otherwise, I would be managing this duplex in Iowa that I've been drooling over by now.

That is what they are buying into. That's my secret to their success and how I would pay them back. That's why they should invest their money with me instead of their bank over and over again. These are the things I have thought about. So NO, I'm not rushing. I'm preparing for the NEXT "Iowa" multifamily to become available to me that cashflow's amazingly with a great ROI, not only for me and my family but to reward the trust my extended family and friends put in me with their money and show them what their money should have been doing for them all this time. I won't take any money from anyone who does not understand what they are getting into. I will explain the contract and the risks to them FULLY and then we will sign the contract thereafter only if the person wants to proceed.

I look at this just like if I was leaving my parents house and asking them to help me out with a down payment on my first place to house hack. But with an actual contract saying I'd pay them back. So please Mr. Green, if you have any further questions that I can answer for you please let me know and I will be happy to answer them for you. And If you have a contract like the one I am asking for please let me know as well, I see you specialize in TEAM building so perhaps you are privy to this kind of thing.

Or if there is anyone else out in BP that can help me out, PLEASE get back to me, with a contract like the one I'm asking for or with any questions of your own. 

Thank you,

Hello Again Everyone,

I am still slowly saving money for my out of state (OOS) investment property. In the meantime my gears have been grinding on how I can speed up this process, short of, selling some (cough, cough) illegal substances or knocking over some banks.

I starting thinking about marketing myself to my family and friends and gathering funding for a down payment from them to create a Joint Venture (JV), where I would pay them interest (at a rate that is better that the savings account that they currently have that money in) over a relatively short period of time.

But I don't want everyone's name being added to the note on the property. I just want a legal document stating that they will receive from me no less than "X" interest over a period of time, or quicker, "Y" from me for their "Z" contribution towards a down payment for an investment property that I am purchasing for me. Etc Etc. Basically stating a deal between me and the investor only with them having zero ties to the property.

Has anyone every done anything like this? Please let me know! Help a NEWBIE out!

@Sue Hann

Sue,

Don't scare me! You have been investing for 15 years and have yet to find this perfect person to handle your financials??? Please explain.

And please tell me as to why you say that about exit planning.

I will definitely update this thread when I find the right person to handle my money with me.

@Bill Hampton

Bill,

Thanks for the feedback. I appreciate you for it.

That is exactly who I am looking for. Someone accessible throughout the year. And as I stated, I will definitely work remotely with this person if necessary. But living in a place as big as Los Angeles I'm holding out hope for one of these people to be local for me (fingers crossed).

One question for you Bill, I see you describe yourself as a "Fee-Only Financial Planner", what does that mean?