All Forum Posts by: Will Mitchell

I’ve had some success with bandit signs.  It’s a cheap way to get leads.  Usually lower end properties.  In my experience with direct mail Consistency is key. You can’t send out one round of mailers and expect to get deals. You need to hit the same list three or four times and have a system of following up with potential sellers. Like Ned said, whatever for remarketing you do you need to try it long enough to get results.

@Tim Youse Those are some great thoughts.  Thank you for the input.  I have someone I am looking to work with to scale a large portfolio.  I am more or less trying to figure out the best way to split earnings. cash flow, equity, also depreciation.  50/50 is the easy answer.  This is where it could get complicated...

Say we start with $1M (partners money) and we purchase and renovate 10 houses. We place tenants and have them pumping out some income. Then we refi through a commercial loan at 75%LTV BUT we are only able to cash out $950K. This would leave the money guy out 50K. Would he get a larger portion of cash flow until he recoups the money or does he get more equity or is recouped at some point down the road. I'm just looking for input on some different scenarios. The good thing is that neither one of us need the money produced by the cash flow immediately. My main concern is building something big. Just say we end up buying 100 units cash flowing $500 each on average. Thats $50K/month so even if he ends up out of pocket $500K after everything is refied it would only take 10 months to make him whole. Then we would just have cash cow pumping out a very nice income for us to split.

I am currently putting the pieces together for a new business which involves partnering to able to build a large rental portfolio rapidly.  I have a few of my own sfh rentals currently and I believe on my own I could buy around 5 or so properties a year to hold while continuing flip 5-6 houses per year.  I am interested in building something bigger and more quickly!  I have been putting some pieces together and connecting some dots in my mind on how to accomplish this feat.  A partnership is the best way I feel I will be able to scale the way I want.  I have a potential power partner that I have been borrowing from and we have a very good relationship.  We have recently discussed doing some business together.  I would like to build a portfolio of sfh and possibly multi-family properties that produces 50k/month in cash flow and I would like to do it in 3-5 years.  In this partnership I would be doing most of the work on the front lines as far as acquisitions and overseeing renovations.  My potential partner would use his capital and his institutional borrowing  power to give us the access to funds we need on the front to purchase and renovate before transitioning into long term financing.   I would love some feedback on how to structure a partnership like this before I go back to him to discuss this further.  Thank you.  Look forward to hearing about some experiences. 

I just bought a property at foreclosure auction.  I have heard of people assigning foreclosure auction properties but do not know how to do this.  In the past I have double closed on deals such as these.  This particular deal doesn't have the enough spread to do a double close.  Can anyone shed some light on this situation?  (I am in Maryland)