All Forum Posts by: Ryan Anderson

After getting my first batch of business cards I've learned that having a good elevator pitch is crucial to your image as a real estate investor and to the possibility of forming new relationships.  I've been working on mine in the past few weeks and I feel like  it's not quite there yet so I decided to turn to you guys for some help.

What is your elevator pitch?  

Do you have any advice on do's and don'ts when introducing yourself?

I'm a new investor myself but I believe that @Tim VandenToorn could help you out with your endeavors.

Best of luck!

@Taylor Ferris  I have not, thanks for the idea!  I might work this into my arrangement in the future.

I'm very new to real estate investing but I just wanted to share something simple that I've learned so far with my first house hack.  As we all know, time is our most valuable asset but and in the begining we have to give a lot of it get the ball rolling.  As for me I have a good amount of spare time to work on research, helpin out other investors and doing general work around my house.  Now since I'm house hacking my first home I've learned something about myself.  Compared to the average person, I'm somewhat of a clean freak (I'd say around the 80% mark).  I know that most people don't care about it as much as I do and I've come to learn that this can cause tension in a house between roommates. 

To alleviate this proplem, this is what I did.

I charged each room the following:

1. $400 for the big rooms $300 for the smaller one.

2. $70 flat for all bills

3. $30 for general cleaning and supplies.

By charging the extra $30 a month per room mate (a total of $90) I get the costs of garbage bags, toilet paper, paper towels, dishwasher soap, cleaning supplies, etc paid for and I do all the general cleaning in the shared parts of the house.  This prevents resentment and hostility from (possibly) building up over who's turn it is to do or clean what.  With everyone happy in the house and no drama between eachother the house stays clean and roommates stay longer and those who leave almost always leave on good terms.

That just a little piece of advice that I have to offer, thanks for reading!

Just like @Matt Geerts mentioned you make your money when you purchase.  In a hot market this just means it's harder to find deals because the supply is lower then the demand.  If you want an easier time finding them, then search just outside of your area for the best deals you can find.  Remember, if you can get a good deal in a hot market, you'll most likely have low vacancy rates and higher rent.

Best of luck.

@Ron Flatt Thanks for your response I have quite a few questions since I've never done a deal before, your advise is priceless.

"The property was in my name, loan was on me. After the bank loan was secured, I filed a second for him, to protect his interest." 

I understand here that you were approved for the bank loan but afterwards what do you mean by "I filed a second for him, to protect his interest."?  Do you mean you mean you got a loan through him as a private money lender to pay off the bank loan?  If not, what does it mean and how did it protect his interest?  

"Yes, we split everything, after all expenses. We deducted the loan, his investment and his interest, my management fees and all repairs that had been done. Rents had been accruing slowly over the period of time."

Just so I have this straight, after everything was accounted for and paid (I'm assuming all repairs that YOU made were paid out to you), you guys would split the profit at a percentage something like (90/10) or (80/20) in his favor since you simply managed it? 

Since I won't be working with any banks I'm wondering if it's worth trying to get the title in my name since he's providing all the capital or if I should strictly treat it as an opportunity to learn how to manage someone else's property to gain some experience.  Of course if I can get the place in my name for me to eventually own that would be ideal. 

@Jonathan Twombly Thank you for the advice.  I'll find out exactly what he has in mind for his side of the partnership and see if straight profit sharing would be ideal for him.

@Ron Flatt  Did the investor keep the title in his name?  It sounds like you were operating as strictly management of the property. 

"we paid off the note on the property and then we split the cash, the insurance refund and net sale proceeds 50/50."

Does this mean after sale and closing you guys split everything you made 50/50?

Also what was your exit strategy after the 5 year period?

@Jonathan Twombly Thanks for the advice.  In this situation my partner is looking at putting up all of the capital for the purchase and keeping lenders out completely to make our offers more competitive.  He will be hands off for the majority of the deal since he already has such a busy schedule; so, at this point he is acting more as a lender then anything else.  I just want to make sure that when I present him an idea of how I think this partnership should run I don't want it to be unfair for either of us.  After reading what you've said would it be wise to simply treat him as a lender and agree to a fixed interest rate on his capital while I manage the property?