10 Investors-real Estate

[Denis3721]

Hi

Okay..10 investors,they invest 5000 each, which is $50,000

Buy a forecloserd home, or a cheap home for about $40,000, fix it up, and sell it for 70,000 or maybe more... so they will basically make $2000 profit. And I would take about 200 dollars from every investors 2000 profit, so I would make 2000...since I run this thing

But I wouldn't hand out the money right away! I would continue, takeing the 70,000 dollars and buying another house, resell it and continue, then after a year or two of business the Investors would get their Pay Check! Everybody would make money...And the start up cost for me would be ZERO dollars!

IF anyone has a better idea, please let me know....because I already have 4 investors so thats like 20,000. I told them to hold on to the money Untill we get all 10 investors..

Im sure I could make money this way....right??

[keltenison]

So is it....

1.) You're like a fund manager, where you take the money and invest according to your criteria and decisions?

OR

2.) Do we have a say as to where the money goes, what property you buy, what renovations to make, etc...

There are a lot more details that need to be worked out, such as where and when, and if it's necessary to take out a mortgage, etc.

IMHO, you might want to work those out first.

[Denis3721]

Well yea this thread was written quickly just to let u know what im trying to do.

I would basically be an Investment Agent or manager, then i would find investors.

The catch is I would be making them money while they wait, its a simple idea, they would be contacted when a property gets bought how their money gets spent...etc

Its not THAT simple but its perrty easy... And yea there is way more work in this then I describe i my thread..

[firejr]

Just some advice... I've been a realtor for more than 2 years now denis...
For starters, its not as simple as buying a house for 50 fixing up for 10 and selling for 70. If you do that, you're probobly losing more than 10 grand You have closing costs when you both buy and sell the house, as well as commissions you gotta pay when you're selling. Also, you need to know that getting people to fix up the house at the promised time and price is a venture on it's own.
I'm not sure if you're a realtor, but you would definately benefit from getting a license and a bit of experience in the market. You can definately make money investing, but it's not nearly as easy as many people think...

[Denis3721]

Im not an expert in Real Estate...Thanks for the tips tho

[ChaseManset]

Pipe dream... Even if, hypothetically you could do just that, your going to be busting your ass for 2 grand. Calculate that into an hourly wage, and your most likely wasting your time.

[akula]

This is called a property syndicate

Call up and get a job with a property syndicate, to get schooled in how to operate property syndicates

Right now, you are unskilled to start this kind of venture, as you don't have the basic skills such as calculating risk adjusted rates of return.

Hi

Okay..10 investors,they invest 5000 each, which is $50,000

Buy a forecloserd home, or a cheap home for about $40,000, fix it up, and sell it for 70,000 or maybe more... so they will basically make $2000 profit. And I would take about 200 dollars from every investors 2000 profit, so I would make 2000...since I run this thing

But I wouldn't hand out the money right away! I would continue, takeing the 70,000 dollars and buying another house, resell it and continue, then after a year or two of business the Investors would get their Pay Check! Everybody would make money...And the start up cost for me would be ZERO dollars!

IF anyone has a better idea, please let me know....because I already have 4 investors so thats like 20,000. I told them to hold on to the money Untill we get all 10 investors..

Im sure I could make money this way....right??

[The Stealthy One]

Denis, what will you contribute to the project? If you're not contributing money yourself, no one will fall for this.

[WanganRunner]

Just some advice... I've been a realtor for more than 2 years now denis...

I'm interested in possibly getting licensed.

Think you could make a thread where you talk about the various upsides and downsides of being a licensed realtor?

The costs, how well you do with what amount of input, etc...

Feel free to shoot me a PM about it, but I think a lot of people here would be interested in this as we have a number of aspiring real estate dabblers.

[cadance]

Way to Go Mr. Trump!! I got my license online in 3 months-super easy if you are dedicated you could absolutely do the same. Have you considered being a property locater in the meantime? So it's kinda the same thing but you work with investors individually and get paid for each deal without a license. Of course a Realtor needs to actually do the deal but you get a% of everyone's profit. I have some more info if you'd like.