Hello DeMarc; I too am starting on almost the ?same page? as you, preparing a written plan etc. for investors (i.e. flipping rehabs and locating ?local? foreclosures and tax properties. I too am willing to do all the ?leg work? and put in the ?elbow grease? necessary to start off. Therefore, if you would like to share each other?s plans (two heads being better than one) we could review the other?s plan etc. I am most excited about making that first jump and actually making some money for both myself and investor(s) out of this ?new world?. Additionally, I have some interesting highly trained labors from Bulgaria who are less expensive and can be moved from job to job. Not slave labor, of course, however they are happy to live and work here (six months at a time) then go home with a pocket full of money where they then live six months and return etc. Thus, the more control you have on the ?hands on? aspect of each project - netting better and quicker project turns and happier investors. Yes, the labors are in endless supply, legally available and highly trained in each field (plumbing electric etc.). Please let me know what you think?
Posted by DeMarc White on November 06, 2002 at 09:35:16:
I am in the process of put together a plan and approach a
private investor to finance my real estate investing. What
I am asking of him is to provide the funding, while I due all
of majority of the leg work. We will be looking to purchase
properties we can rehab and the sell for a min. net profit of
15k in and around the Raleigh, NC area. My question is
how should the profits be split. Is it fair to ask for
50/50 split if he is providing all of the $$$ ??
Posted by Jasonrei on November 06, 2002 at 10:34:26:
Yes, 50% is fair. I think that’s how a lot of real estate investors start out. Be sure everything is spelled out in advance. He is to fund purchase AND fix-up. You are to find and secure the deal, then supervise fix-up and sale. Will you use a real estate agent to sell? Spell that out. He might be thinking you are going to sell the house, if you use an agent he might expect that to come out of your pocket. Tell him you will split actual profit.
Re: Using private investor - Posted by demarc white
Posted by demarc white on November 06, 2002 at 10:58:26:
Yes, I am planning to use real estate agents to sell the
properties. That how I plan to entice the agents to work
with us by giving them the buy and sell. Thanks for the response