Seeking Partner
I'm building my foundation as a real estate investor in the NYC metro area. Seeking a potential partner for down payment. Current property $750,000 VERY FORTUNATE. May need $75,000 down. Will get financed (including renov expense) and flip immediately. Comps in area $1,300,00-$1,500,000 50% split. Interested? Qualified? Ready?
Suggestion for your deal:
Advertise for local IRA investor, as he & you could form an LLP or LLC and he'd put up the cash from his IRA and you'd sign the note for the loan for purchase and rehab.
His IRA would own limited liability units or part of the partnership so it would not be responsible for payments and his total risk would be limited to loss of all or part of his $75,000.
You'd want to ask around and find a good business entity lawyer to help you work this out, and establish the entity and its operating agreement for both of you.
Although the first one would cost you the legal fees and time and trouble, you'd then have a re-usable blueprint for subsequent deals.
unlimited,
Where is this deal located ???
1)Thank you for the IRA investor advice. Sounds like a winner to me - whether or this deal or another.
2)The property is located in Central Harlem. - NYC
I appreciate your interest.
Unlimited,
what kind of experience do you have in NYC RE ? How do you know this property is worth over a mill ?
unlimitied,
what kind of renovations are needed ?
and how much is it going to cost ?
whos figures are those?
umlimited,
Sorry for the delay in writing back. Do you plan on reselling this or keeping, and if so what is the rent roll?
Unlimited:
One of the rules for this forum is that you must post sufficient detail for us to make some analysis of the viability of the transaction. I do not believe your current post qualifies. Please give us more information.
Ok, unlimited, this has become precisely the sort of discussion that the rules of this forum were designed to avoid.
When we "invented" this Deals in Progress forum the idea was to give developers and investors a place to get together to "do" actual transactions where one party or another was short some part of the deal. I'm afraid your posts here do not qualify for at least 3 reasons:
1) You do not have site control.
2) You have not provided sufficient detail to begin an analysis of whether the transaction is viable.
3) The property is not commercial.
Now you have three different deals you are discussing here, but in each of them some combination of these violations is present.
This is not supposed to be a shotgun forum where you can scattergun every deal you are working on in hopes of finding somebody to invest. This is supposed to be a very targeted process.
Let me say that I think you need an investor with considerably more than just cash to invest. He's also going to need to ride shotgun on you. If the sort of slap-dash approach you have brought to your presentations here is the way you go about your real estate carreer you (and anybody who invests with you) are in for some very exciting times. Any one of the transactions you have _might_ work but there is nowhere near enough information in your posts to allow an investor to analyse them. My guess is that you either don't know how to do the due diligence necessary prior to going into a deal or just haven't done it.
Let me point out that when you take other people's money to invest you are supposed to be the one with the answers "Depends on who's doing the work and how elaborate. " is not the response of a fellow who has worked out the details of a construction budget. Nor is it an adaquate response to gobriango's question. By responding in this way you brand yourself a total newbie who does not understand the first principle of real estate-- it is possible to loose money. The easiest way to do so, especially in the early deals, is to fly by the seat of your pants without doing your homework. I have no sense in your posts that you have done any of the homework.
My advice is to go spend some time on the beginners forum and learn how to do the basic due dilligence to analyse a deal and present that analysis to an investor before you get yourself and some innocent investor in really hot water.
You sound a little hostile commercial king. If this is a place to learn, then teach. I've actually learned a great deal from johnmerchant and gobriango asked appropriate questions. The first property I mentioned was a mixed use - commercial and residential property. And I didn't see anywhere posted that we were only talking about commercial properties. I will refrain from seeking investors, but I am seeking investors too. However as a beginning real estate investor - guidance and knowledge are far more valuable to me than your criticism. Keep that in mind. One day, I will actually be a seasoned investor. My success will be largely due to seasoned investors kind enough to mentor me and other beginning investors. I guess you've forgotten....
Actually, unlimited, I'm not hostile at all. In fact I think I've been a lot more lenient with you than any other moderator at TCI would be, including the dear Mr. Michael on the forums he moderates.
I'm a little confused about how you failed to notice the rules regarding posts to this forum, since they come up each time you begin a thread here. But, for sake of clarity I will post them again here in much abbreviated fashion:
1. THE ADVERTISED TRANSACTION MUST BE REAL AND SPECIFIC
Your posts here have always lacked specificity as I pointed out once in this thread already
2. THE ADVERTISED TRANSACTION MUST INVOLVE A CERTAIN TYPE OF PROPERTY.
That is, it may not be a residential transaction of less than 5 dwelling units.
Quote: And I didn't see anywhere posted that we were only talking about commercial properties.
Ok, now you've seen it. Clearly your single family house deal(s) fails to qualify.
3. YOU CANNOT ADVERTISE YOUR SERVICES.
4. YOU MUST BE A PRINCIPAL IN THE ADVERTISED TRANSACTION.
You must have an ownership interest in the property - i.e., you cannot be a bird dog,
You will note that of the 4 possible violations you have managed to hit 3 so far in this thread. All you need to do is respond by asking for a mentor (or even better offering to be one) and you will be batting 1.000.
Quote: I will refrain from seeking investors, but I am seeking investors too.
Oddly enough, this forum is the one place on TCI you are allowed to seek investors. If you follow the other rules. Thats true because I went to Joel and said that a forum that allowed asking for investors would not be overun with guys posting every deal they run across because we could otherwise police it. Your post has rapidly deteriorated from marginaly acceptable to the perfect example of what not to do here. Quite frankly that is why I've not deleted the entire thread before now. As Mark Twain said, "A person is never totally wrong, at the very least they can be pointed to as an example of what not to do."
Now as to whether my criticism is mean-spirited I suppose it may be. First you don't read the rules. Then you claim that the guy that points them out is a bad guy. I suppose if pointing out this violation of the rules makes me a bad guy then I am one.
But before you conclude that I am unwilling to help others I suggest you go read some of my other 1700+ posts. I think you will find the majority helpful. A few are bittingly sarcastic, as this one is becoming. Generally that is a response to either what I percieve as bone-headedness or a lack of human compassion. In your case its bone-headedness.
You seem upset because I've been critical instead of giving you advice. Look back at your posts in this thread. In none of them have asked for any advice. You have posted asking for investors. I have responded that your posts don't follow the rules and that an investor would be foolish to invest with you. I have done that not because I want to put you down but because I have some concern that somebody even more foolish than you will ship off their hard-earned dollars over to you for one of these pipe dreams. My advice was not directed to you. You have not asked for it or shown any signs of willingness to accept it. My advice was directed at those who might read your posts here and believe that TCI has, somehow, endorsed these products of yours.
So even though you have not asked for any real estate investing advice I will give you some.
The first thing I would suggest is not running around half-cocked. Which all the evidence so far says is precisely what you are doing. You will note that I have previously suggested that you go study the beginners forum some before you come here posting looking for investors www.again.I re-itterate that advice.
Second, do not accept the valuations of real estate brokers as to what post-renovation values are just because their offices happen to be located a couple of doors from the property. Brokers are notorious for over estimating after-rehab values and under-estimating the cost and effort to get there.
Third, living in Harlem doesn't make you an expert in NYC real estate. Yet that was the only answer you gave when gobriango asked you about your expertise. If all that was necessary was residency NYC would have somewhere in excess of 7 million experts. While there is one sense in which that is true (I've never met a New Yorker who didn't think he was an expert-- usually about everything. It is one of the things that is endearing abou them.) before you get some investor to fork over cash he has a legitimate right to expect more in the way of expertise than that.
Fourth, before you start quoting rehab costs get some idea what they actually will be. Preferably in writing from licensed contractors.
Finally, that said, I appreciate your enthusiasm and your confidence that you will someday be a seasoned investor. I hope that you are. If I can assist you in reaching that goal please do not hesitate to ask.
Unlimited,
Keep your head up, However Commercialking is 100% correct. I stopped asking questions on these deals when I realized that any of your info was marginal at best.
my advice : DO YOUR HOMEWORK !!!
I'm sure there is a lesson in here somewhere. It's still too early for me to know how much info to disclose. Up until last month, I was just in a great neighborhood in Harlem with lots of deals popping up only after I got to know my neighbors. Madonna bought a condo 2 blocks from me. NYC is not as cut and dry as some others. Particulary Manhattan. I'll attend some local real estate investment groups with seasoned Manhattan investors that are more familiar with the value of the area. Thanks.
I mean...can you FEEEEL the LOVE??!!!
I agree with everyone...post some specifics and you will find this board most helpful.