All Forum Posts by: David F.

Hello all,

I have approached my cousin, a millionaire stockbroker, about the possibility of starting a partnership wherein, I would find the properties, put together a business plan/investor package, and then together we would market these properties to his contacts and associates and start a partnership that way. I have a few questions:

1)Is there a good sample of what a high end investor's package would look like, so I know the types of things I should include?

2)What kind of participation should I be getting in this type of deal, assuming, that for now, I am not putting any equity in?

Thank you for your help.

THE HUN.

I would love to take this deal on myself, however I have two hurdles to deal with:

1)not enough equity to make this work on my own
2)this is my first deal and I don't have ANY experience flipping houses. I don't think watching all of those episodes of Flip This House is going to help me when I hit a rough spot.

For those reasons, I think that I would need to take on someone. That way I can learn and get paid at the same time. That way by the next one, I will be that much further ahead.

What would you suggest?

OT: I do want to thank you for your help. I am so glad I found a board like this with really helpful people. I am new, but I can't wait to get more experience under my belt and be able to help others as well.

Thanks.

THE HUN. :rock:

That's awesome...I know that everyone here has the best of intentions and that you are warning me and showing me the real world of this particular avenue of investing, and that is excatly why I did ask the question to begin with.

This is the stuff I was looking for, the stuff NOT included in the books or courses, the stuff these guys don't talk about. So, I went to the tax assessor's office, and found that the house that I am looking at is assessed on a value of $394,000. There was a reno done on the same street that is selling now for $1.2 million. As well, there are other houses on this street, all occupied and fine, and are assessed at $750-$850K. So, my question is twofold:

1)what is my next step? I wrote down the owner's information, and I did an internet telephone search and have his/her phone number. When I call them I should ask if that house is for sale and what would they be willing to sell it for?

Assuming a house can be built for approx $100-120/sf. I am not sure about demo and clean up costs (need help here). Given these, and the fact that I don't have money, however I do know investors and a couple of home builders what is the best play? The way I see it is that there are some options here assuming a decent purchase price (which would be??_

1)I could wholesale/partner it to an investor
2)I could wholesale/partner it to the builder
3)If the homeowner doesn't want to sell, perhaps I can create some form of partnership between the two of them (my homebuilder and the landowner) and for this I can receive some equity in the deal (of course in this as in all of them I would make sure to tie up the property beforehand)

I appreciate any and all advice.

Take care,

THE HUN.

Guns? Pepperspray? Salt? Thank you everyone for the complete FREAK OUT. Man, all I want to do is make some money. I know real estate is work, but affecting personal safety? I don't know. This has always been my main issue from day one. Even for regular houses. I mean, ok, the house isn't in a rough part of town there are some $700K houses on that street at the end...it's weird. I don't think there are crack people in there, but going into a vacant house, is creepy.

THE HUN.

Hi Everyone,

I had a question. I recently came across a vacant house that I feel has tremendous potential. My question is: what are the safety issues, as in personal safety issues when dealing with vacant houses, ie. vagrants, or possible people in there that I may not know about.. It's a bit paranoid, but I am looking for some assurance from people with experience. Please let me know any good and not so good stories....

Thanks.

THE HUN.

That is an excellent point. I know that with some of these guys, I will have to put together an extremely detailed business plan/Investment Memorandum to get their attention.

Other than real estate clubs, where would I go to find real estate investors?

Take care,

THE HUN.

A couple of points:
1) Are these types of loans typically recourse or non recourse?
2) I will have a conversation with my cousin by the end of the week. I am going to approach him with my business plan. I am in Canada, so I would have to look up securities regulations here. I didn't know that to form a partnership you need their approval. I'm not selling units per se, I was thinking of setting up a simple LLP and taking it from there. I thought that was how partnerships were formed.

Thanks for the help.

THE HUN.

Hello All,

I wanted to introduce myself to the Forum. I am no longer sitting on the fence, sitting and thinking and pontificating about how wonderful life would be investing in real estate. I have made a commitment to myself and more importantly to my family that within one year of TODAY, so October, 10, 2008, I will have made my first real estate deal, the first of many. I figure a nice public declaration here is a nice spot.

I will start with my first question here: I have access to capital, at least I think I do. That is, my cousin is a millionaire stockbroker, and I have at least 3 other stockbroker friends who service high net worth individuals ($1,000,000+ in their investment accounts). So, I know that if I find a good opportunity,( while I have nothing to put in, as I simply don't have much to invest with) I have some options or, at least the possibility of creating a partnership. QUESTION: With no experience at all in real estate investing, how do I go about forming partnerships with people? That is, why would someone trust me if I haven't done this before??

Thanks for the help.

THE HUN. (by the way, I'm a guy. It is HUN, as in Attila the HUN, not Hun as in Hunny, or HUN as in the Soccer Fans, people have always thought it was one or the other)