Looking for Investor for Flip Project
- Thread starter ace5135
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First, immediate family: grannie, uncle, dad, bank of mom, sister .. then wider network of friends, church members, tennis club members of high school pals that struck it rich
Put an ad on myreinspace or in the newspaper with meaningful details on your website !
Put an ad on myreinspace or in the newspaper with meaningful details on your website !
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- Sep 21, 2007
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A private lender will also be able to help. First go Thomas' route. A private lender will only put in maybe 65%-75% LTV (purchase + reno costs) to start. Once you build up experience and a track record they will be willing to put more cash in the deal.
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- Mar 12, 2008
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[quote user=rforgiel]A private lender will also be able to help. First go Thomas' route. A private lender will only put in maybe 65%-75% LTV (purchase + reno costs) to start. Once you build up experience and a track record they will be willing to put more cash in the deal.
True, it all depends on how you present your opportunity,
We just got 116% ltv of the purchase price from a private lender at a very reasonable rate.
NOTE: we could not have done this without a solid track record and a good rapport with the lender.
True, it all depends on how you present your opportunity,
We just got 116% ltv of the purchase price from a private lender at a very reasonable rate.
NOTE: we could not have done this without a solid track record and a good rapport with the lender.
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- Oct 24, 2007
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- 2,289
I can close within 48hrs for anything under 500k and unlike hard money lenders I am willing to work off an equity stake. I also buy assignments if you just want a quick cheque. I need to make 10% of the after-repair value so that's the room you would need to bring me in.
Refurbishing is not hard. Finding money is not hard either. The trick is finding a good enough deal to make it work. They seldom exist on MLS (people like me look there all the time) so you need to find them privately... and with 5000 realtors in town it means everyone knows one so it's rare for sellers to feel the need to just dump their place privately without at least getting a 'second opinion' from a realtor. That is why you don't hear stories of people getting rich flippng houses like you did in '05-'07... there isn't enough deal flow to have consistency in this business.
In short... worry less about finding money and worry more about generating leads for genuine motivated sellers with equity.
Refurbishing is not hard. Finding money is not hard either. The trick is finding a good enough deal to make it work. They seldom exist on MLS (people like me look there all the time) so you need to find them privately... and with 5000 realtors in town it means everyone knows one so it's rare for sellers to feel the need to just dump their place privately without at least getting a 'second opinion' from a realtor. That is why you don't hear stories of people getting rich flippng houses like you did in '05-'07... there isn't enough deal flow to have consistency in this business.
In short... worry less about finding money and worry more about generating leads for genuine motivated sellers with equity.
Thank you, Thomas. The only wealthy individuals in my family that could fund this project are mommy and daddy and I am not on terribly great terms with them.
I live 3500km away from most of the people I know and have lost touch with them.
The newspaper ad or ad on this site are great ideas that I would not have thought of.
I live 3500km away from most of the people I know and have lost touch with them.
The newspaper ad or ad on this site are great ideas that I would not have thought of.
Thank you for your reply, Brett.
Is that 10% of the after repair list price or the after repair sale price?
I would assume that I am not responsible for capital investment tax on your return on your investment.
I was hoping to start small with a job in a SE community not far from me. Lightning quick flip. 10% would certainly eat up a large percentage of the revenue that I would expect to bring in from this venture. I would certain consider your proposal if we were able to work together on future projects at a more favourable split.
Thanks,
Jeremy B.A.
Licensed Realtor
Is that 10% of the after repair list price or the after repair sale price?
I would assume that I am not responsible for capital investment tax on your return on your investment.
I was hoping to start small with a job in a SE community not far from me. Lightning quick flip. 10% would certainly eat up a large percentage of the revenue that I would expect to bring in from this venture. I would certain consider your proposal if we were able to work together on future projects at a more favourable split.
Thanks,
Jeremy B.A.
Licensed Realtor
- Joined
- Oct 24, 2007
- Messages
- 2,289
Hi Jeremy,
It would be after repair sales price and no you are not responsible for any taxes I have to pay.
Normally I list them for free but since you're a realtor we could talk about that.
Remember this though
From the real estate act industry standards of practice:
62(1)
An industry member
trading in real estate on the industry member`s own behalf, either
directly or indirectly, must disclose in writing:
(a)
to a buyer or seller who is not represented by an industry member:
(i)
any interest, direct or indirect, that he has in the transaction;
(ii)
that the industry member is authorized under the Act;
(iii)
the name of the brokerage with which the industry member is registered;
(iv)
complete details
of any negotiations for a further trade of the real estate or the
industry member`s interest in it to another person; and
(v)
any information within the knowledge of the industry member that could materially affect the value of the real estate.
Item number 5 makes it very difficult to trade in real estate yourself privately when you have a license.
It would be after repair sales price and no you are not responsible for any taxes I have to pay.
Normally I list them for free but since you're a realtor we could talk about that.
Remember this though
From the real estate act industry standards of practice:
62(1)
An industry member
trading in real estate on the industry member`s own behalf, either
directly or indirectly, must disclose in writing:
(a)
to a buyer or seller who is not represented by an industry member:
(i)
any interest, direct or indirect, that he has in the transaction;
(ii)
that the industry member is authorized under the Act;
(iii)
the name of the brokerage with which the industry member is registered;
(iv)
complete details
of any negotiations for a further trade of the real estate or the
industry member`s interest in it to another person; and
(v)
any information within the knowledge of the industry member that could materially affect the value of the real estate.
Item number 5 makes it very difficult to trade in real estate yourself privately when you have a license.
- Joined
- Aug 30, 2007
- Messages
- 13,881
[quote user=ace5135] Thank you, Thomas. The only wealthy individuals in my family that could fund this project are mommy and daddy and I am not on terribly great terms with them.
I live 3500km away from most of the people I know and have lost touch with them.
The newspaper ad or ad on this site are great ideas that I would not have thought of.
Cash comes from two sources: your own or others.
"Others" comes in a variety of forms: close to you or not so close, and include banks, sellers, lenders or JV partners.
Add'l thoughts: Investors/others who invest with you look at two things: the project .. AND YOU ! Thus, it is critical that you can build relationships. Thus, it may help to rebuild lost relationships with people that were once close to you (dad, mom, brother etc. ..) or at least critically ask: why are those relationships poor. Perhaps you can learn s.th and improve new relationships too.
I live 3500km away from most of the people I know and have lost touch with them.
The newspaper ad or ad on this site are great ideas that I would not have thought of.
Cash comes from two sources: your own or others.
"Others" comes in a variety of forms: close to you or not so close, and include banks, sellers, lenders or JV partners.
Add'l thoughts: Investors/others who invest with you look at two things: the project .. AND YOU ! Thus, it is critical that you can build relationships. Thus, it may help to rebuild lost relationships with people that were once close to you (dad, mom, brother etc. ..) or at least critically ask: why are those relationships poor. Perhaps you can learn s.th and improve new relationships too.
- Joined
- Mar 15, 2008
- Messages
- 510
Read what you have written. "Trust funds." Ah, no. They are held in your lawyer's account "in trust". : )
Using trust funds to finance property acquisition - or used for anything other than what they are intended for - leads to jail time in Ontario. : )
Using trust funds to finance property acquisition - or used for anything other than what they are intended for - leads to jail time in Ontario. : )
Hey Thomas:
I am confident an investor will want to invest with me specificially. I am educated, hard working and charismatic. Somebody will be impressed with my detailed business plan as well. I have never had problems building relationships. My problem is maitaining relationships when they don't have a clear and obvious value to me.
Jeremy
I am confident an investor will want to invest with me specificially. I am educated, hard working and charismatic. Somebody will be impressed with my detailed business plan as well. I have never had problems building relationships. My problem is maitaining relationships when they don't have a clear and obvious value to me.
Jeremy
- Joined
- Aug 30, 2007
- Messages
- 13,881
[quote user=ace5135]I am confident an investor will want to invest with me specificially.
Sounds great.
Attach a website to your footer for "free advertising" !!
Sounds great.
Attach a website to your footer for "free advertising" !!
L
lanedry77
Guest
Guest
Jeremy,
I'm active in the Calgary market and do many types of creative deals.
If you are unable to find the capital yourself, I am always on the lookout for good deals, and would happily pay you a finders fee if the deal was right.
That way, you could assign a few deals and start to build up your own pool of capital meaning you might not need investors on future deals.
Thanks,
David.
I'm active in the Calgary market and do many types of creative deals.
If you are unable to find the capital yourself, I am always on the lookout for good deals, and would happily pay you a finders fee if the deal was right.
That way, you could assign a few deals and start to build up your own pool of capital meaning you might not need investors on future deals.
Thanks,
David.