All Forum Posts by: Tanner Marsey

Thanks for the reply! I do invest in the stock market, too. But real estate is way more appealing to me for many reasons. It’s not that I’m looking for bad investments or anything. I’m just wondering if I could use my ability to not take immediate returns to partner up with individuals and maybe get into some deals that maybe someone looking to take x % right off the bat may not be able to. 

I guess what I am asking is if having a partner not looking for immediate return is beneficial in a partnership. And if so, what are some ways to structure that deal. Ex... fund 30% of the deal, take no profit for x amount of years and maybe take 50% of profit when the time comes 20ish years down the road....

Sorry. I feel like this is a very confusing question that I am not wording very well....

Good afternoon. I had a question about partnerships/creative financing (sort of, maybe...?)

I am looking to expand my portfolio here in the next few years. I Have a W-2 job that I absolutely love and have no desire to leave for about 20 more years, which will put me at age 51. I make a comfortable living and easily support myself and young family and am able to save some money to invest on a regular basis. Which leads me to my question....

I don’t care about seeing a return on my investments until I retire. I will take a pension upon retiring but it will be significantly less than what I currently bring home. I am looking to supplement my early retirement with real estate. I am trying to come up with a scenario/structure that would be beneficial for me in the long run, as far as not taking profits in the immediate future, and beneficial for a partner in the short(er) term.

Will it get too messy as far as exit strategies? Ex. They want to sell I want to hold. They want to leverage, I don’t....

Hopefully I phrased this question in an understandable manner. Any examples, suggestions, help or criticisms are welcomed with open arms. Thanks in advance!

Was thinking about this a little more... is it possible for you to get with an experienced flipper in your area and see what they think? If they want to do the deal maybe you partner up with them. Allow them to take the lion’s share of the profit but you’ll make a little cash to roll to your next deal and you’ll get the experience of working through a deal while also decreasing your risk. Just a thought....

A lot of people will say breaking even is a no go. In the right scenario.... I’d say go for it. If appreciation is a possibility it might be worth it. If it’s in a nice, desirable neighborhood it could be worth it. If you feel confident you can rent it out with little time between tenants, if you can raise rents to give you some cushion all those things might make it a good buy. Places like this I look at no differently than a 401k, really. You will break even most years. Might cash flow a bit some years and some years you will dump money into the thing. But ideally you will reap the rewards 20 years down the road when your tenant has paid for 80% of the home, you now own it free and clear and your cash flow is handsome. Also, make sure you have the means to cover a few months rent and expenses out of pocket. Good luck.

@Mark De sagun

Hey! Nice first post. Very detailed.

Be realistic. You probably won’t become financially independent in 3 years.... especially going turn key... set realistic goals and go from there otherwise burn out is highly probable. Also, trying to achieve goals like that can lead to poor decisions/bad investments. It’s possible, but not likely. Read up and start making moves! Good luck. And keep us posted.

sounds like you made the right call in walking away! Good on you for not letting emotion and the excitement of getting a deal cloud your judgement. 

@Heidi Kenefick

It’s a numbers game. Attach a cost to all repairs needed and run your numbers. If it works, it works. There may be headaches and what not along the way but break it down. You might be walking away from a good deal because you’re overwhelmed. Also, if the seller is motivated and it makes sense.... I wouldn’t hesitate to make a second offer that takes all necessary repairs into account.

@Zachary Grauer

I am sure I’ll get a lot of backlash but.... in my very humble opinion this is a profession that will not be around much longer or at least a profession that will not be very lucrative except for a select few in niche markets.

If you’re looking to buy/sell your own deals might be worth it. Otherwise.... lots of other things to do in the real estate industry.

@Lee Zhao

If any of your sellers are looking at selling directly to an investor as opposed to owner occupied feel free to contact me.

Thanks!

If your parents want to help you out with the down payment and also have a spot to stay.... that’s fine. Tons of parents help their kids purchase their first home. Don’t try and construct this as an investment. It’s going to end badly for you and your family. (Most likely)