All Forum Posts by: Michael Moikeha

Do you have the property under contract or already owned? before doing the construction on a building that is going to serve as a fast food restaurant, you could market out to potential franchise owners and work a partnership or just sell them the bear lot. So many fast food companies (at least out in the PNW) have buildings that are branded in their construction. 

I would take that in mind as you plan out your options.

Maybe you could talk to local franchise owners, see if they are interested in a 2nd restaurant, or know of someone wanting to start. Then offer to finance the build of the property as well as carry all the costs and just have them sign on as a tenant for X years saving them from the risk of ownership.

I usually post this to new people as I remember it being told to me and having it change my mindset. 

"Would you rather have 100% of $0 profits because you can't fund the deal and don't wanna pay the costs, or some percentage of $50,000 profits and sharing the wealth as you couldn't do it on your own?"

Before losing the deal, take whatever you can and start that relationship with a money partner and renegotiate as you continue to prove yourself. 

 First flip was done while working full time and going to school full time, so my marketing was minimal. Shortly after this I quit my job and started going full time at real estates, upped my marketing, and in the next 6 months got 2 more flips. This is my first year, so they are not lining up back to back and 2 at a time as I will hopefully have soon, but it is picking up. I am now doing 4000 letters a month and looking to add other aspects to my marketing.

@Bobby Holley

Property 1

$103,000 purchase price

$47,000 budget

$227,000 sales price

We cleared $60,000 in profit and split it 50/50. No brained deal for anyone with money. It was easy for me to look at it and feel like he was making too much, but in the end, it all comes down to the ideal of this: would you rather have 100% of nothing or 50% of everything. We were happy to get $30,000 on our first flip with zero money down! Investing partner was happy to get $30,000 for taking the risk on us. 

Property 2

$185,000 purchase

$27,000 budget

$265,000 sales price. 

This deal on its own is way to tight, but, we purchased sub2 and owner carry with $0 down and borrowed $25,000 for our budget. Paid 15% on it. Over 2 months. 

With a a few thousand dollars holding costs, and a quick flip, we cleared $30,000. Not enough to cover HM or a JV project, but enough for the easy project and the deal we structured.

When I am doing all the work and bringing the deal to the table, I put no money into it and use a money parter for 50% profit splits.

When we are bringing money to the table as well as doing the work, we use the same individual, but he loans at a guaranteed percentage. 

Just make sure that your numbers are correct. The saying, "you make money on the purchase.." means that if you buy at the right price and your numbers are right, you will profit. If you buy at the wrong price, there is almost nothing you can do to turn that investment around.

Get the property and use the cash flow to pay off the debt. You are not drowning in debt as it is, and you do not seem at risk to do so either. Be smart with your money and do not waste your money frivolously. 

If it was a SFH, I would say to pay off your debts as you are bringing on a larger new debt, but if it is a MFH, it is an investment that will lower your monthly payments giving you more income to pay more on your CC debt.

So in your instance, if your rental rates are correct and the property is in good condition, spending $200,000+ will save you more money and help you pay down your debts faster (as a MFH purchase at a price that make sense and cash flows is not a debt but an asset as it is bringing in more than it is costing).

Keep it up!

These people and "companies" change names so quickly and often that it is pointless to try and name them all. The important thing is outlining the key aspects that make a good investor.

1. They want to know about the investment. Any real money investor is looking at the numbers of your deal. If they are not, then they are wrong. 

2. They should never need money, account info, or anything of the sort outside of Escrow.

3. Meet in person, sign and notarize JV agreements, promissory notes, and trust deeds.

4. If something feels fishy, move on. Not worth the time of trying to play their game and "stick it to them." These people are not stupid. If they were, they would be on the other end of the scam.

Dishwasher, unless there isn't enough cabinets for a normal family of 4.