Champak, Thank you for the interest. I wouldn't be brokering at all, I mentioned simply as its given me experience in understanding home value, how markets work, and how to locate and manage tenants.
I like your idea on setting an income number and building a model around that.
The 25K figure is based on my ability to acquire the structure with my own capital or equity. 25K is general figure per unit for renovation and carrying costs. The rents are high enough to be cash positive relatively quickly.
My goal is to generate income. Even if the sale value on the property only increased 1% per year that might be fine - if rents are this high. The difficulty many people are having getting loans creates the opportunity.
Ideally I would like to start with a few properties to demonstrate to my investors that this is a functional opportunity.
I have a job here now that pays my bills.If I can generate enough investor interest and enough proven opportunity I will rehab and manage full time.
Therefore:
What compensation should be offered? High interest short term loan or 50% equity stake long term? A 5 year period would be sufficient to either develop an income portfolio for further sale. Ultimately I am only willing to be the direct property manager for the first few years.
But I might need to build a managment company as I suspect the local outfits are inept and unreliable.
Advice is appreciated! Thank you!
