All Forum Posts by: Rizwan Alam

Post

This thread is very important to me, so I will be attaching some people's names that I directly need advice from based on the research I have done about them on this forum.

When I was 19, I stumbled upon Loopnet, and I told myself that one day I would want to become an Apartment Building owner. At the beginning of this year I came across BiggerPockets and I kept reading and reading and I found some amazing stories, that gave me more confidence in achieving my dream. I had nothing at the start of the year, but I worked extremely long hours, and got lucky with an online investment and managed to save a good amount of money, but still it is not enough to secure approximately 1M funding. One day I went to go get my cheque from the owner of the security company I work for, and he told me that he loves real estate as well, and has had many dealings. He assured me that based on the amount I have, he will also bring the same amount in cash and we can do 50% partnership, and he also assured me that for the rest of the amount he can get us approved.

So to sum it up:

• Budget: 1M
• Good % as down payment.
• We can get the loan approved as well.
• Experience: My partner has owned a motel before and currently owns multiple houses in Southern California. 
• Where and what kind of deal are we looking for? The deal can be anywhere in the states with decent rental market, and we want to make 10K per month from the property. Based on my research one place that seems to be really good is Memphis.
• What kind of help do I need? Deals and Guidance. Main reason to put this out there is to find a good deal, but I need help in everything else as well.

@Tom V.

Could you explain a bit more about preferred equity notes? And how would you actually structure a limited partnership for every single property? Does my investor have to have a business license?

And either way you do it, it really is just interest or investment what ever one wants to call it.

The bigger issue is how to structure such a deal in legal terms. Where I can show in my taxes that I'm paying the investor from our profits?

Okay so this is a tough question and I read some of the other similar threads here and most of you believe this is quite impossible.

Here's the thing, I have some cash saved up and I will be buying 2 houses out of which one is making 1K a month and one is a rehab project which should also bring in 1K a month.

The thing is I've got some people with some money in my family and they would happily invest if I can guarantee a profit to them and if I can show them a couple examples. Another thing is they don't care about owning a property or having the hassle of chasing tenants so the following would be my deal. Another thing to note is in my religion they don't like interest so what ever money I borrow I would have to make them some sort of a partner.

• Ask $20K ( The property won't just be 20K I will also be investing some)
• I will be the owner of the property. (Yes they will be okay with this.)
• I will guarantee their money back no matter what.
• Guaranteed ROI = 25K Total
• Payments = 500 x 5
• They can ask their money back at anytime at this point we will sell the property and give their money back.

Or is it better to make them a minority partner of the property instead so I'm not the only one responsible for damages.

Also how do we structure such a deal in legal terms.

I know it's a tough question but let's try answering it, but if not the. I guess Fix n' Flip is the only option where you can borrow someone else's money.

I don't know anything, I'm new and learning but that is by far the worst deal I have ever seen in real estate or anything else. You invest so much money, 30-45 days of work, and make 10K from over a quarter of a million dollar invested.

No no no.

Alright guys I've got some cash saved up and I have been browsing and asking questions on this forum. I am first looking to acquire a couple 'Buy and Hold' properties to bring in cash flow before jumping on 'Fix n' Flip'. The primary city of interest has been Jacksonville, FL, but I found a really good contact in Cleveland and the deals their are mind blowing. I am about to purchase my first property and I have a real estate agent there in Cleveland that I trust, but I want to do my own due diligence as well. So I have these general newbie questions?

Questions: (Not all these questions pertain to the property I am looking at but I come across these situations when looking at deals.)

1. Who do I pay. the title company? Which document makes me the rightful owner?
2. How to verify if there is a mortgage on the place?
3. How to verify if there are back-taxes on the place?
4. How to verify if a property is Section 8 approved?
5. How to verify the claimed rental income?
6. How to get damages and repair costs? (Hire an Inspection Company and that's it right? Or gotta hire a contractor as well?)
7. How to get the accurate ARV?
8. How to find out if the house is or has the potential to be on schedule by city to be demolished?
9. How to find out the recommended property management company is actually real and licensed and legit? (Silly question I know but...)
10. What kind of contract do I need to pay a partner a percentage of 'Net Profit' of that property? Is it better to get new contract for every property or one contract for all properties?
11. If we use flipping as an exit strategy, do I have to pay to my the partner who is managing my properties?

Thank you guys for reading such newbie and silly questions and considering to answer them.

-Rizzy

@Ryan Kolodzej

Hey I'm brand new as well and it's good to see someone else as newbie as me searching about mobile homes. I have never liked mobile homes and never even looked them until I found BiggerPockets. Many of the top people here have some sort of investments in this area and that just gave me the confidence to consider.

Then I found @John Fedro website and researched some stories, and that has given me more substance.

But in my early research I have learned that in MH you should never do buy and hold, and I'm a guy who loves buy and hold way more then flipping. But in MH, you want to look into selling for first profitable cash offer or doing owner financing.

Think of mobile homes as selling used cars, you wanna sell them quick and move to the next one.

Thanks!

Rizzy

People from Cali especially SoCal, can we talk a bit about the topic of mobile home investing in Californa.

Hi @CoCo Schafer

I live in the So Cal area as well, and I have some cash saved up, I'm looking to invest outside of Cali into single family houses, but doing some research on mobile homes investing within Cali as well. Because although it's near impossible to do single family homes here in Cali, mobile homes seem like a real possibility but I'm always very iffy about manufactured properties because it's hard to rent them out and I'm not much of a flipper myself.

I am intrigued by what you have done and since I am in the area I would love to meet up and talk joint venture on something like this.

Thanks

-Rizzy

@Wendell De Guzman

Could you please explain more about how your manufactured homes are turning out to be? Just like you I'm not a fan of such properties, and I look for deals to hold instead of flipping, but based on the confidence you are showing on these manufactured homes, I think I'm interested.

I'm not rich, but I think I might be able to afford these manufactured homes deals. If it is truly profitable we could do one every month.

Thank you for reading and considering.

-Rizzy