Real Estate Opportunity

[entrepresooner]

I have been searching for the right property or Properties to make my entrance into the real estate business, and now I have found them. I have done my due diligence, including CMA's with a realtor. I am college student with student loans on my credit right now, so I am not in a position to finance them myself. Although, I feel that cash would be a much better way to handle these properties in the current market.

If you have at least $5,000 to invest, are interested in making money up front, down the road, and on the back-end I would love to show you what I have come up with.

If not, please feel free to offer any advice/experiences you may have.

Also, the one part of the deal I haven't figured out is what would be a fair "cut" for me since I will not be putting any money up, but instead will put the deal together and manage the whole process.

[BusinessAdviser]

What do you mean when you say that you will "put the deal together and manage the whole process?" What are you offering that someone else couldn't just do on their own?

[entrepresooner]

I am the finding the properties and analyzing them to determine profitability. Once I have found one that has some promise, I begin looking for the capital to purchase the property. I will be the one coordinating the buying, management, and sale of the property.

I currently have 1 with big potential, 25-30% ROI in 90 days or less. That is if we decided to do a straight flip. There are also some advantages to holding onto the house and leasing it until the market is more in favor of sellers.

Interested?

[BusinessAdviser]

So why you? What experience do you have in terms of this work? What knowledge do you have?

[entrepresooner]

Your not choosing me really, you're choosing the deal I bring to you. It would be the same deal whether a young guy new to the business (me) or an experienced veteran presents it. It just so happens I'm the one who found it. If you look at what I have put together there is not any guess work or leaps of faith, just straightforward facts.

You might ask "If its so straightforward why hasnt anyone already jumped on it?" I don't know, but I do know that if I don't cash in on it someone else will very soon.

As far as experience goes, I have grown up watching my father, my uncle, and my father's best friend invest in numerous properties, and do well for themselves renting them out. Also, I have read numerous books, and resources on business and real-estate. I have spoken with friends and family active in all aspects of real estate from buying, to building, to architecture, engineering, and selling. I have actually been involved in the rental business since I was about 12. Since my dad rents some of his houses I spent many Saturdays fixing broken toilets and repainting houses. I have also looked over some of the paperwork used in closing. I listened while my dad spoke with realtors and attorneys and learned alot that way.

I still have a lot to learn though, but aren't we all always learning?

Through all of this I have assimilated my own idea of how I will manage my own investments. I have taken note of the things the people around me do and paid attention to what works and doesn't work.

But, I am sure there are many other people with great opportunities too. It just comes down to whether or not someone likes me enough, and thinks enough of me to trust me with their money.

[BusinessAdviser]

Good luck to you. However, do understand that any experienced investor is more concerned with whom he is investing than even in what project he is investing.

[kiddoso]

Your not choosing me really, you're choosing the deal I bring to you. It would be the same deal whether a young guy new to the business (me) or an experienced veteran presents it. It just so happens I'm the one who found it. If you look at what I have put together there is not any guess work or leaps of faith, just straightforward facts.

You might ask "If its so straightforward why hasnt anyone already jumped on it?" I don't know, but I do know that if I don't cash in on it someone else will very soon.

As far as experience goes, I have grown up watching my father, my uncle, and my father's best friend invest in numerous properties, and do well for themselves renting them out. Also, I have read numerous books, and resources on business and real-estate. I have spoken with friends and family active in all aspects of real estate from buying, to building, to architecture, engineering, and selling. I have actually been involved in the rental business since I was about 12. Since my dad rents some of his houses I spent many Saturdays fixing broken toilets and repainting houses. I have also looked over some of the paperwork used in closing. I listened while my dad spoke with realtors and attorneys and learned alot that way.

I still have a lot to learn though, but aren't we all always learning?

Through all of this I have assimilated my own idea of how I will manage my own investments. I have taken note of the things the people around me do and paid attention to what works and doesn't work.

But, I am sure there are many other people with great opportunities too. It just comes down to whether or not someone likes me enough, and thinks enough of me to trust me with their money.

It's great that you have the right attitude, understanding that you still have a lot to learn. That's a good starting point.

However, going from where you are to where you want to be (to have investors interested in your projects) takes time. You actually listed reasons why investors wouldn't choose your projects. Your background in real estate is essentially through reading, watching, and listening. That is dramatically different from putting a project together. Yes, ultimately investors are seeking projects, but they are investing in you in the sense that they have to trust you enough not to waste time on the deals that you have selected.

Seems like you do have valuable resources, having family who is in the industry. Why not be more hands on, and build up your experience?

[ltressel]

Kiddoso has a point here. Here are some problems that you will encounter.

1) Experience.
2) Most real estate investors (active and seasoned ones) have their team of people that
handle the "hunt", construction, financing, and sales.
3) Your pitch is toward a silent partner who knows squat about investing. They are out there but with today's situation, they will invest in a person who has more experience.
That goes back to problem number 1.

My suggestion will echo kiddoso's:

Be hands on. Work with your family and have them help you. Maybe get your deal and partner with someone with much more experience than you. If you show your family that you are serious about this, they will not hesitate in teaching you and giving you your first hands on experience.

It's easier to establish trust with you family and vice versa than work with a complete stranger and vice versa. Real estate investing however you approach it is a lot of hardwork, head aches, and barrels of tolerance to adversities.

Have someone guide you through this. You'll be better off.


LT

[entrepresooner]

I guess I should clarify what I'm trying to do I'm not trying to put together a project. I am have found a foreclosure priced way under market value. Everything checks out on it. I just need the backing. Im looking to either flip it or put in a renter for a couple years and then sell it. Still, thanks for all the info.

[DPayne]

Why don't you put it under contract to purchase and sell your contract to the investor for $2-10k profit for you? That would be the easiest way to make some quick change in this deal being in your shoes?

If it's a stellar deal, you won't any problem finding an investor who will be willing to pay you a couple grand for an assignment of contract. Just make sure you have an escape clause in your contract incase you can't find an end buyer.

Just a little warning, once I found a property that I thought was stellar, it looked amazing on paper. Once I got to do a little title research, I noticed some huge problems on the title. I would never have been able to sell this peice w/the hickey's on the title. Just make sure every thing is clear.

Do this a few times, and you'll be able to fund your own project with cash.

-disclaimer: This is my opinion, not legal advice

[entrepresooner]

I have read about doing that in a book by Ron LeGrand. I am not sure on how to work it. Any more advice you have would be great. Also, what would be the best way to find an investor to buy out my contract?

[DPayne]

Where are you located? Find your local real estate investor association if you have one, place an ad in the paper, call contractors to see if they know investors, craigslist, etc. There are many ways to find investors in your area.

if you want more info on wholesaling real estate, it is all over the internet. If you want this bad enough, you'll find what you're looking for.

[SlvrBulletV6]

I am the finding the properties and analyzing them to determine profitability. Once I have found one that has some promise, I begin looking for the capital to purchase the property. I will be the one coordinating the buying, management, and sale of the property.

I currently have 1 with big potential, 25-30% ROI in 90 days or less. That is if we decided to do a straight flip. There are also some advantages to holding onto the house and leasing it until the market is more in favor of sellers.

Interested?

You're trying to flip properties in 90 days or less at a time the RE market is going south? How do you plan to make a profit? Unless the foreclosure is really really below market price, I would wary in investing....

[entrepresooner]

The current downturn in the market is exactly the reason I will be able to make the money.

The houses I am looking at are brand new (2-3 yrs old tops) and are being foreclosed because someone bought too much house during the big boom that we are coming down from. Now that the rates are going up on those variable rate mortgages, there are alot of people who cannot afford their monthly payment. So now that the house has to be foreclosed, I can step in and buy them cheap.

The ones that I am considering are listed well below appraisal value and even farther below market value. On some of these houses I am buying for 30% less than what I will list them at. If there are any problems selling I have a few ideas for sweetening the deal to sell. Plus, since I will be buying the houses for cash, I can afford to sit on them for a few months.

If they do not sell I can refinance the house for more than I paid for it, then lease it out, and sell it a few years later. Mind you I will still be making profit from the lease agreement. On top of all that, I mentioned refinancing for more than I paid, that will leave me with cash to buy more properties, pay back dividends, or improve the property with.

If you would like to take a look, I have begun to put my leads in a quick and easy to read word document that covers all the basics: such as a the property condition, official appraisal info, and a Comparative Market Analysis from a certified real estate agent that I am working with.

If anyone can see any holes in my plan, please, share your knowledge. Challenge me! Ask any relevant, sincere questions you may have! I am sure I can find with an answer.

[BusinessAdviser]

Your not choosing me really, you're choosing the deal I bring to you. It would be the same deal whether a young guy new to the business (me) or an experienced veteran presents it.

With all due respect, you are dead wrong. The sooner you realize that an investor doesn't just invest in a project, but invests in a person (and quite often the person invested in is actually MORE important to the investor than the project), the sooner you will be able to find success in any project.