Need Equity/ Credit PARTNER or Investor for Real Estate Deal

[HiccupinGminor]

Hello everyone,

My name is Chris Chung, I am a first time poster here. Right now I am studying business finance at the University of Colorado at Boulder. To finance my education, I have been doing small real estate deals. I don't have any credit of my own, nor do I have any capital. I am posting on this board to see if their is an investor out there who is willing to risk some equity and/or credit in exchange for a real estate partnership with me.

There are plenty of hard money/ private money investors who are willing to lend against a property provided the borrower meets a credit quota (usually around mid 500's will suffice) and some small cash reserves to secure the following. I personally know investors who will loan millions on these conditions (unfortunately I don't qualify on this basis):

appraisal
closing costs
1-3% down payment

The property I am looking at right now is located in Memphis, TN (a market that is still seeing home values appreciate at around 5-10% per annum). More critically, this means that homes there are selling!

3 Bed, 1 Bath
Price: 54,500
Value: 120,000 (Based on 5 local comparable sales.)

I estimate my partner(s) cash investment would be less than 10,000 plus the risk of using their credit to secure a private (non-bank) real estate loan. I would be doing all of the legwork (i.e. contracting, marketing, inspecting, selling, listing, negotiating, etc.) your contribution is money/ and or credit.

I would split all profits from the deal down the middle.

Preliminary Pro forma:
Current Value: 91,000
Current Price: 54,500
Needed Repairs (formica kitchen counter tops, central air conditioning, simple landscaping): 5,000(rough estimate)
Holding Costs: (2,000-3,000)
Remaining Equity: 120k-62.5k=57,500
Partner Equity Compansation (50%)= 28,750
Estimated Investment Funds= 7,500
Return on Investment= 383.3%

Time Frame: 6 months or less. More realistically: less than 3 months.

So, If interested feel free to contact me at my email: cchung102@yahoo.com


Note: If you are tempted to jibe me for posting or criticize my need for funds, I would prefer you to do it in private over the above email.

If you need more information, please politely ask on this forum.

Thanks everyone,
Chris Chung

[HiccupinGminor]

Also, If you are looking to invest even more funds (100s of thousands- millions) on projects a bit bigger in magnitude, please email me. (I realize real estate is a pretty dull investment, but managed correctly, is a great moneymaker)

I have negotiated some good deals, but, for lack of capital, have been unable to follow through.

[K25150]

"Note: If you are tempted to jibe me for posting or criticize my need for funds, I would prefer you to do it in private over the above email."

The negative doomsayers are out there man for sure. Good luck to you.

[jasaunders]

I don't invest in real estate flips, but some advice to you (and all other college students on this board)... as a college student you really should work on building a credit history and improving your credit. It is extremely valuable. With the amount you are looking for, if you had any decent credit you would be able to get the money from any number of sources and wouldn't have to rely on an investor.

[ltressel]

Hey Chris,

Who's going to TN and do the rehab work?



LT

[rogercbryan]

Chris,

I like the way you laid everything out (very professional). I’m a bit concerned with the prices you gave for the work that the house needs. Just an FYI a central air system alone will cost over $5K and to remodel a kitchen will cost you $5-10K easy. You have the right idea but you need to rework your numbers. What Josh said is also true, you need to build your credit so that you can do these types of deals on your own some day.

[pbeale24]

Chris, I wanted to say I am also impressed with your post, it is a great initial outline. I also wanted to agree jasaunders that you should work to build your credit it will be invaluable in this type of venture. While I am not going to invest in this deal I thought I would post anyway if for nothing more than encouragement. I know a guy who found someone on craigslist to invest $15k on a down payment on a deal he found. There was plenty of built in equity and instead of flipping it they both decided to refinance, take out the equity tax free, hold and rent. I know most people don't want to be a landlord and I can understand that, the point is he found a guy local to him and the property which I think is invaluable. When it comes to real estate I am not comfortable not investing locally or without seeing the property and the process thoroughly through. I know that will limit me, but right now not really, because I am in Romania, one of the fastest growing economies and real estate markets in the world. Good luck to you Chris.