All Forum Posts by: Bryan Wilson

thanks for all the replies.  Seeking out an attorney today to go over what needs to be in writing.  It'll be worth it to have him draw something up.  I have a lot of the ideas down to show him/her and go from there.   I will keep you all posted on this whole transaction as we go forward.   

Thanks Tom that is a great idea...pocket deed.  We know her pretty well and with her already moved to Dallas she is really desperate to just get this house fixed and sold.  In my rough draft of the agreement letter I've stated that in the event she wants to cancel the contract I am to be paid for all funds used since the agreement began within 15 days.  I don't think she will cancel it as I know how desperate she is to get this thing done and over with.  She has too much money going out right now with the mrtg here and whatever she is spending down in texas.  To relieve some of that stress is where I stipulate I will pay the mrtg BUT I get that back after the sell of the home.  In our conversation prior to me drawing up this letter of agreement, she said she didn't care about that.  All $ I put into it I get back plus a percentage of the profits. 

Some quick numbers.  She owes $165k. Similar comps in the area, in fact just a few houses down, just sold for $350k.  The house needs a lot of updating.  All lipstick stuff.  No major fixes at all.  The house sits on a nice golf course.   She basically doesn't want to have to deal with anything at all since she is down in Texas.  She has basically told me to do whatever needs to be done  to get it sold and we split the profits.  I just want each of us comfortable  in this agreement so I want everything laid out.  I've found some basic "Agreement Letters" which will outline all the work needed to be done and how I will be re-paid for all funding and a certain percent of the profits when the house sells. 

We have a friend that has moved from Iowa to Texas but has a home that needs about $50k worth of work on it.She has very limited funds if any. I have agreed, if we can get a contract for this, to take over her mortgage payments, use my funding to fix the house up, get it on the market, sell it, pay me back what I put into it, including the mortgage payments, and then split the profit on the sale of the home.What type of contract would be needed for this?How would you set one up?Who should get a larger percent of the profit? The one with the most risk?  

If I can give any more info I will. I appreciate the communities feedback.

I'm not a pro at this by any means but I'm gonna venture and say yes it is an expense that you will be able to deduct on taxes.  Keep all your receipts. 

Keep me posted on upcoming events.  Looking forward to attending. 

Thanks Bill I guess you scared me too much to even think about doing this.  Wait...SCREW THAT!!!  Take chances buddy!!  I've heard too many of you guys talk about people sitting there and not DOING!  So tell me Bill.  How am I to learn?  Take a class?  isn't that basically what BIGGERPOCKETS is only it's real life and not out of a text book.  Tell me Bill, if you were a newbie please give me the step by step process of learning the business.  Wouldn't getting out there and doing things, working, hands on experience be just as good if not better than reading and watching? 

The properties I have in mind are not dumps...Bill.  These are properties that actually wouldn't need major work done to them.  So in essence her investment would be on a property that most likely will sell once its ready.  These are not shacks that are in the hood.  you know, the hood there in Springfield.  Down by Kansas Expressway etc.  I'm looking more in the area of say let's see Battlefield area.  Middle class homes.  So the risk isn't as high as what you are thinking. 

Thanks for the heads up on dealing out of the area.  I understand that statement. 

Thanks Jett.  I've been in contact with a few locals.  Hope to see them soon.  I can do some of the work myself.  I have experience in the basics such as tiling, finish work, painting, etc.  The small stuff.  I don't mind contracting work out at all though.  I guess it would just depend on location. 

Thanks for the reply Larry.  I think I came off wrong in the post then.  She has thought about flipping or in general real estate in the past because of her family.  Her brother in-law builds new homes and flips a few houses here and there on the side.  So she's sat back and watched this for years and then I came along 3 years ago.  I have in no way pressed her into anything at all.  If you knew her, no one gets to do that.  LOL.   I in fact haven't spoken about the business in quite a few months but she sees me studying and watching and taking notes.  I think she wants to see what happens when I get into it and that's fine. 

"Second, this sounds like too much of a business partnership than a marriage relationship. Have the attitude that what is yours is hers. Not she'll get so much and I'll get so much."

Well we aren't married just yet and she is looking out for her future so I can understand her hesitancy.  I want to be able to show her that this is what you invested and this is what you get back.  She wants to be able to put that away for herself and I don't mind that at all.  I think a woman needs that $ for her own independence so to speak.  Nothing wrong with her having her money and me having my money and then we have OUR money.  So I asked what would be a good return on her investment. What percent do you all generally go by. 

Again, thanks for the reply.  I look forward to more dialogue and ideas. 

I've been on the boards for a bit I guess.  I've listened to podcast after podcast and forum thread after forum thread. Tons of youtube videos as well.  I'm ready to dive in and according to some of you guys, "ready to fail fast."  How else am I going to learn and grow. 

Here's a little bit more about my situation.  Although my credit isn't terrible, I was hoping my fiance' would invest in this with me.  With her awesome credit and income I thought we'd find a flip, I would put down any $ needed in order to secure the loan, I then would use my cash to do all repairs and upgrades in order to get it ready for market.  No $ out of her pocket at all.  Yeah she has the risk of the loan but that's it.  Upon selling the property she would make a percentage, which I'd like to know what you all think a good return on her investment would be, and I of course would pocket the remainder, turn around and re-invest in the next flip. 

Am I delusional or is this how some of you have done it in the past? 

I'm not concerned with making a large profit on my first few flips.  I don't care if I make $5k or less.  I want the experience... badly. 

Would anyone here be opened to partnering up on something?  It can be in the Iowa or surrounding states area.  Not too far that I can't travel when needed. 

I have all the time in the world to be doing this and I'm anxious to get started.  I hope this thread starts some great dialogue to get things going.