All Forum Posts by: Michael Moikeha

I would suggest starting small as you suggested was a possibility. Start your purchases one at a time and possibly with multiple partners. Then after establishing a company and establishing actual cashflow and not just having it on paper, you could then try and find a partner who will come in and purchase the portfolio from you and your partners, you can pay off your partners and then start new with this single partner and move forward through the rest of the plan.

@Bill Gulley 

On my last deal we were a month behind schedule. Most of which was not the contractors fault, but it's  been hard to get him back on track after having already lost the timeline. Just wondering if that should have been easier to manage had I been more proactive with a contract. 

@Bill Gulley - Do you have an example contract you would be willing to share with the BP community?

Talk to him. That is going to be the easiest way to see what he would want out of the deal. Instead of jumping in with expectations of what he MIGHT want, ask him what he would want.

He isn't a professional investor, so he expectations will not be the same as a seasoned Private real estate lender or a HM lender. 

If it is anything less than a straight 50/50 split, then you have a better deal that you would normally have with a partner.

I currently use JV partnerships, some local and some not. I am an investor that does both flips and holds. I live in the Portland market which is HOT! If you're looking for deals and partnerships and ever want to expand, let me know.

 Title companies can provide lists. You can talk to real estate agents and get expired listings. You could get delinquent tax lists as well. Best bet for little money would be to drive and walk the streets and write addresses of properties that look like ones you wanna buy and contact those homeowners. Maybe try and knock those doors. 

I would suggest trying to work with him to short sale the property. I talked down a bank that was owed 145,000 to 103,000 (and when I say "I talked down" I mean my bank negotiator really beat up the bank and she was well worth the cost!

Welcome!

Sounds like a unique niche, and if you can make it work, great. 

Start by building your basic knowledge of investing by joining local investment groups, reading the free material given here, and once you have a more specific question vs "where do I start" you can start to get real direction.

THIS is where you start. Bigger Pockets. Question are good, but the specific question of "where do I start" IS what this site is for and all the information is here. Just look and when you find stuff, ask and dig in.

3 options:

1 - Local Credit Unions. They are usually able to bend the rules a bit where banks can not.

2 - Money Parter/ JV Partner. Partner puts up all the money and you do all the work tying up the deal, managing the flip, and reselling the property.

3 - Hard Money, and pay that 12% and 2 points.

Look at it this way: YOU ARE NOT LOSING MONEY USING A HARD MONEY INVESTOR

Here is why.

If that is your ONLY option and the deal really does pencil out, then you will still make a profit. If you personally had the $200,000 to make the flip yourself, sure you would gain an extra $10,000 on the deal, but if you never jump and never close the deal does that $10,000 really matter!?! Would you rather have $20,000 (It would have been $30,000 if you could self fund it) or $0 since you didn't want to make your lender any money?

I am NOT a Hard Money Lender, but I personally battled over the idea that I was giving someone money for doing no work. Turns out, thats the benefit of having the money to put in high risk high reward situations!

Don't limit yourself by seeing the potential loss, jump on the potential gain.

Find deals and go from there! I used to think I needed to work to save the money up to invest, but after learning and hearing people here, the best thing to do is find a deal and then figure out how to work it. If you can not hold it and can not find money people to help, then you wholesale it.

Now you have some more money for your next hold deal as well as experience.