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$3,000 gets you $1,000 a month for 9 months 2 partners needed.

Discussion in 'Joint Ventures' started by chrisis4ever, Jun 24, 2011.

  1. chrisis4ever

    chrisis4ever Regular Member

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    Oh here we go. This is a real estate deal. There is a 12 bedroom house done completely in my city and I am $6,000 short. The house is modeled like a bed and breakfast / group home and is ready for rental. I plan on renting each room to college students for $250 a room. $3,000 gets you 4 rooms for 9 months which comes out to $9,000 for your initial $3,000 investment. I live in Cleveland Ohio and would like to deal with 2 people from the US if possible. I will sign a contract if you have your lawyer write it up. I have a few tricks up my sleeve for filling the rooms quickly.
     
  2. KraftyKyle

    KraftyKyle Jr. Executive VIP Jr. VIP Premium Member

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    You may have the best intentions of paying it back, but that's a lot of money to expect to make in 9 months with one house which you don't have any prospects yet. Best of luck in your search though. I'm just saying this because I was told I would be paid $5,000 for a site and the guy sent me a signed document and everything and ran with it. I feel there should be some STEEP requirements for asking for $1,000+ on this forum. I think it should be banned, but theoretically it's a good idea to have it. If you're so sure that your $6,000 investment will turn around, why don't you just get a loan?
     
  3. chrisis4ever

    chrisis4ever Regular Member

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    I am sorry someone cheated you. I am sorry byou didn't do the homework required to backup the claims of the person who cheated you. Man, if I had met you before you got cheated we would have made a lot of money together. I CAN PROVE THAT I HAVE ALL BUT $6,000 FOR THE HOUSE. I need to know more about loans but it is a possiblity. I want this house TODAY !!!! Who knows how long a loan takes to process. Question you got the signed paperwork how come you haven't taken this person to court? If you weren't willing to take them to court in the first place why would you even risk your money or care about signed paperwork. I hope you didn't partner up with some Nigerian. You know you are not supposed to give those people money right?
     
  4. tygrus

    tygrus Supreme Member

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    Charles Ponzi would be very interested in this. Too bad he isn't alive.

    Dude, if you are a real estate developer, then you should know there are lots of things you can do later and save that $6,000 instead of begging for it here. Just leave off the driveway or exterior finishing until you have the cash. Big time developers move people into unfinished places all the time.
     
    Last edited: Jun 24, 2011
  5. chrisis4ever

    chrisis4ever Regular Member

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    First time home buyer here. My mom bought her first rental property at 22 and is stilll renting it out 30 years later. If anyone wants to see the house listing privately please let me know. If you live in Cleveland Area please let me know and we can go see the house together and plot.
     
    Last edited: Jun 24, 2011
  6. aReJay

    aReJay Power Member

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    Ok,

    Here's how you go about this if you really want to do it.

    Step A) Create an LLC - Call is BHW Realestate Holdings (or whatever)
    Step B) Input all your capital as equity and issue yourself 100,000 shares
    Step C) Take money from investors as debt equity and issue a number of shares relative to your input capital
    Step D) Create a bank account where funds can only be utilised with the signature of ALL directors
    Step E) Buy the property using company funds
    Step F) Appoint all your BHW investors as directors of the company
    Step G) Write a post dated company check for the agreed upon cash out amount
    Step H) At the same time as G, have the sign a forward dated share sale agreement at the price stipulated on the check in G
    Step I) At the stipulated date in G/H the investors cash their checks and you execute share buy back and remove the investors as company directors

    Welcome to development 101

    If you willing to go through all of the above I would be interested.

    -aReJay
     
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    Last edited: Jun 24, 2011
  7. chrisis4ever

    chrisis4ever Regular Member

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    Sounds great I am not sure how to do the "shares"
     
    Last edited: Jun 24, 2011
  8. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    What financing route are you taking on this?

    I don't think Fannie or Freddie offer financing for a commercial deal but they may as I've been out of the loop for a bit.
     
  9. chrisis4ever

    chrisis4ever Regular Member

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    I am trying to pay cash. One question how do I get the bhw board members off the title of MY HOUSE after I have paid everyone off. I am not sure about the details.
     
  10. Supernoob

    Supernoob Regular Member

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    Surely ask the bank manager? They should be able to do this if you can prove to them youll be able to pay them back.
     
  11. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    You wouldn't put them on title; just have them as lien holders.

    I have some friends in the business up in Cleveland, if you want to PM me the listing, I'll ask them to look it over.

    I'm not adverse to investing 6K on a decent real estate deal.
     
  12. chrisis4ever

    chrisis4ever Regular Member

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    I would CRY if someone stole the property but I am willing to share.
     
    Last edited: Jun 24, 2011
  13. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    These guys are honorable guys; they would never violate my trust nor would I theirs and I personally would never buy anything in Cleveland as I live in Florida.

    I just see this as a short term investment on my end.
     
  14. chrisis4ever

    chrisis4ever Regular Member

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    Check your pm. $6,000 will get you 9 months rent for 8 of the 12 bedrooms. I will manage the property screnn the tenents.
     
  15. aReJay

    aReJay Power Member

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    The great thing here is that you don't own the house, the LLC does so the LLC owns the title to the property and the directors manage the LLC. Once the investors are paid back you simply remove them as directors from the LLC and no longer do they have any control over the funds, assets or decision making of the company.

    There are a whole load of other benefits involved in buying property through LLCss as well. I don't know a whole lot about US corporate law (I'm an Aussie) but here what we do is setup a trust which is the sole share holder of the company with the investors being the beneficiaries of the unit trust. You can either get a nominee director or one or all of the beneficiaries act as company directors. What you are essentially achieving here is a minimised tax rate and increased financial distance from potential law suits. Meaning if the LLC is sued your personal assets stay clean, and if you declare bankruptcy you still get full benefits of owning the property.
     
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  16. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    I saw the listing; I have a better plan for you that would allow you not to have to bring in any investors and keep everything except about 1600.00 a month.

    Check your PM and close this thread as you would be giving out way to much money.

    The deal would be 100% yours and you would reap all the profits.
     
  17. chrisis4ever

    chrisis4ever Regular Member

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    Thanks for the idea I am not going to lease the place to attempt to sublet. I need a little more stabilty to not be worried.
     
  18. philly3

    philly3 Regular Member

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    Highly suggest this one:

    Print out that post, bring it to your lawyer, and there ya go. I'm sure your lawyer will understand what to do.
     
  19. chrisis4ever

    chrisis4ever Regular Member

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    Well I just made an offer on the house and they said it was a typo. Ahhhhh !!!!! Ok whoever wants to go in on some Cleveland rental property send or post some listings. I prefer Cleveland west but we can talk. Houses in the inner citty cost about 10-12k (two family) I have seen them as low as $8,000.
    They are even cheaper in the city "East Cleveland" (a totally different city) not the east side of Cleveland. I would never purchase from that city because they comeplely broke so there is high drug and crime activity that wouldn't appeal to the college student market we are looking for.
    I have $3,000 so two or 3 people with the same amount can jump in if needed. We would split future repairs. I would manage proprtties and hire people if needed. We can make tenents sign leases after credit checks (which we will get affiliate comissions from) so we will get our 1 year rent if they end up staying or not.
    Also: you can pay me 20% to manage this property (if it turns out to be real)
    HTML:
    http://cleveland.craigslist.org/reo/2428887907.html
    If you think I am being to ambitious please let me know. Shoot some ideas my way. Thanks !!!!
     
  20. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    If you are going to be in the RE investment game long term, go to meetings at places like thers:

    REIA of Cleveland

    Contact: Bill Schiram
    Telephone: (440) 842-7200
    When: 3rd Tuesday of each month, 6:30pm - 8:00pm
    Where: Knights of Columbus Hall, Garfield Heights

    and

    Contact Person:Edward Sullivan
    Meeting Address
    :
    18318 Pearl Road
    City, State Zip
    :
    Strongsville, Ohio 44136
    Meeting Time
    :
    Last Saturday, 10:00 a.m.
    Phone Number
    :
    440-973-6731
    Web Site
    :
    www.reiacleveland.com/
    Email
    :
    edward@reiacleveland.com

    I don't know those particular groups but when I was in that world, I belonged to several of those kinds of organizations and you'll end up with some decent contacts generally.
     
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