State of the Industry 2016

[BarbE]

Oh crap, I guess the forum doesn’t accept copy and paste!

I have an REO for sale that I am asking $11,500 for, located at 11435 Johnson Alley, Irvington, AL.

3/2 1488 sq. ft. needs full rehab, excellent candidate for 50/50 model (Turmkey Flipping Academy) RentFax Score was in the 50’s.

Any interest?

[BarbE]

I was actually presenting (in the first scenario) a potential scenario with another mentoring student who I was already in talks with and had his own investor(s) lined up. It sort of fell by the wayside, but I think I can rejuvenate the conversation with the right answer / structure. One of the stumbling blocks we had was that the investor wanted his 10% return immediately, which made it hard to buy NPL’s and wait for the returns to filter in. Plus if we had to satisfy his return with PL’s there wasn’t much left-over for the NPL’s…..

[BarbE]

Ralph, I’m not sure if you were addressing your question to me or not…. – Barb

 

[BarbE]

I am also involved in a 9 member JV consisting of IRA’s and LLC’s. Each entity member contributed what they wanted to and all income and expenses are added/divied out according to that initial percentage invested by each entity. Each member took a piece of the work pie (some on the DD end, some working the legal aspects, some doing the bookkeeping, etc.). We drew up our own JV contract. It’s been 2+ years in the making and we’ve gotten our principal back and still have half the notes still to be completely worked out. What would have been the best approach to structure this JV? What pitfalls do we need to consider for the next time we consider doing this type of arrangement. Everything is working fine thus far, but I know there could be dangers lurking.

[BarbE]

I would like to partner up with another mentoring student who has investors wanting their 10% return (or whatever it may be). In the scenarios we came up with I keep coming back to SEC concerns because of having the other student (less experienced than me) in the mix with me and his investor. I don’t know the best way to structure this type of arrangement to include all three of us. Whether we purchase NPL’s or strictly a private lending type of situation, I am not sure how I can structure this with three of us in the mix, legally and with protections for all.