Re: Does Carlton Sheet’s course work from home? - Posted by Ray
Posted by Ray on July 10, 2001 at 11:27:52:
Mike, Most of us realized there was some thing wrong when we read your “Post”. Don’t let a terryr get to you. I am sure after thinking about it he is sorry. And Mike, there are no “big shots” here. Just people trying to get ahead. Some wanting help and other willing to help. We all know that terryr was “off base”, so forget it…
Now, as to your problem. Yes, I think you can do it. You would need a couple of things. First, think of how many people you know that paid Uncle Sam last year. Maybe that doctor? Maybe some family members? Go to them and offer to give them 99% of the depreciation on any property on which they advance you the down payment. That means they are going to be partners with you and own 99%. Don’t worry about that because your agreement is going to call for you to be the controlling partner with your 1%. Also, your agreement is going to say that as soon as the partnership has paid them the return OF (not “ON”) their down payment money, they become the 1% partner and you become the 99% partner. Another thing your agreement will say is, as the controlling partner, you have the sole say, as to if and when, any property will be refinanced or sold. Now think about it Mike. Say the doctor gives you $10,000 and you purchase a $80,000 property. He will get from $3000 to $4000 tax write off a year. (You will need a good CPA) In about 3 or 4 years he has made back his down payment money from tax write offs. I don’t know where you live but the house should appreciate at least 4% a year, so after 4 years it should be worth at least about $90,000. Without getting too involved with all the numbers, like mortgage pay down etc, you should begin to see the potential for you.
The other thing you need is a good young real estate broker. Get one that is just starting out and is “hungry”. Tell him you will use him as your broker if he will (1) Advise you of any deals that he runs across that fits your investment plans, and (2) will go look at and help you evaluate any properties you have located by your following up on newspaper ads over the phone…
Now one other thing you need to consider. Because of large medial bills you may pick up a few judgments. You will want to protect yourself and your investor. You need to find some one you really, really trust to act as a ‘trustee’ for you. A son, daughter, wife. I don’t know? Ths is a legal problem. I am not going to get into this, except to say it can be done. You need to pose this question to a good real estate attorney. You can do it Mike! Good luck, Ray B.