All Forum Posts by: Joel NA

Nice run down of options, Brian!

I spent years learning the local market. Though not even half of my leads that led to offers came through my realtor, I still learned a lot by going to look at MLS places with her.

Perhaps a little bit of all the strategies you mentioned might work. A lead is a lead is a lead, right?

right...thanks!

Welcome to BP! This place is great!

I'm not as exprienced as many on this site, but the REO offers I've put in through an agent have generally been countered quickly or have been too low to generate a response--though I was told that no response was coming anyway. I would think that offering higher than listing would ensure a fair chance at getting the property.

I'd say you haven't hurt your chances at all. I hope it is truly a deal for you. Since you are planning on living there yourself, that's not as important anyway.

Good luck!

Thanks Mark!

First off--what's HML stand for--- I should probably know from lurking on this site!

Don't you think that there's some value to work those hours on your flips? Aren't you more aware of estimation factors, pitfalls and quality issues?

And it is fun---but it'd be cool if there was a time in the future when I had to choose between making a ton of money or having fun at an hourly wage!

I'm definitely going to run the fixed pricing idea by my partner.

Honesty's what makes BP great...thanks!

I hope to only do deals eventually--- but we do enjoy the labor, for one.

Interesting idea about a fixed price contract...

I'm working on spreadsheets that explore different hour disrepencies and different wages--- fixed price contract may solve some of those unknowns...

Everyone uses "COW" Classic Off White from MAB/ Benj. Moore in my town. It's a flat but it's good, cheap paint in 5 gallons.

I'm a painter sometimes-- always use a Wall Shield flat white for ceilings.

I use eggshell on walls for my own rentals because it's so much more durable than flat.

Color-wise it all depends on how nice the rentals are, I think.

Thanks, Wheelhouse!

It sounds like were getting somewhere--- this is a particular case and we draw up a different Partnership Agreement each time, so we could do something like that.

Do you guys think it's flawed logic to evaluate a deal based on $ made per hour? That seems to be the big hurdle for us in this instance because of different amount of hours we can work.

Thanks for the replies, fellas... I understand that there's more money in making deals than swinging a hammer, and I think I'm working that way. Still, both my partner and I are good at rehab, and we enjoy it. Inventory of good deals is low where I live, too.

I like some of these ideas so far---it seems like we need to place a value on the deal itself and a separate value on labor... and treat it as an expense as Brian suggested.

Wheelhouse-- can you elaborate on your "silent partner" idea--would that mean a money partner only, then changing the split from 50/50?

Again, thanks guys.

Need help figuring out this partnership agreement!

My partner and I are preparing to conduct our second REO rehab together. We completed one a few months ago and were happy with the results.

We do most of the rehab work ourselves. For this project, one of us is going to have more time to work onsite than the other, but we're putting up equal money for the cash purchase and will split the materials, holding, realtor and all other costs.

We're having trouble finding the right way to pay ourselves for our own labor. We think one of us could spend as much as 10 times the amount of time working onsite as the other. .

Some problems we've considered include:

1. Guy who works onsite fewer hours will earn more per hour if profit is split 50/50

2. We "paid" each other out of our profit last time but the hours were more equal then-- now we're having a hard time deciding upon an appropriate wage to pay ourselves if we choose this route...

3. Guy with less hours could want more worked subbed out depending on agreement-- whereas the guy who can work more will want to get paid to increase profit

4. We're having trouble determining how much our money is worth..and how much our time is worth.

5. Providing worst-case scenario assurances in the partnership agreement is key for us...we have a friendship to protect as well as our own financial interest..

We need to flesh it out more, but we're leaning toward paying ourselves between $30 -$50 for our own labor, then splitting the remaining profit. That figure-range seems to be a compromise between a straight profit split and strict "per hour" profit split.

Anyone have any thoughts? Thanks in advance!

good discussion here...

I'd like to dedicate more time to REI but day job (and the paricularly the w2 that makes financing easier, as Chris mentioned) and family time limit my hours. It's not laziness-- I'm happiest and most productive when busy-- it's simply a lack of time.

For me it's a fine line between providing for the fam and spending quality time with them. I'd love to do REI full-time, but, as has been covered here and in other threads, it's a tough call. While I agree with the "positive thinking, go-for-it" folks on this site in regard to full-time REI, I also appreciate the sobering advice of those who caution against a rash decision just to get out of the grind.

Still learning, of course, and mostly through this site. Great thread!