I am new , have a good/great fico score , 10/20 ks in the bank, want to wet my feet with a Re investor as a credit partner. I placed an ad, got many answers, but first need advice what area of rei would be best to start
and more important what i should be looking in a partnership (documents).
I can only go stated as i just started my own company a few months ago.
Looking for deals not necessarily big money, but a something steady (monthly 0r 3monthly)…rehab; preforclosures i guess.
and more important what NOT to do, things to avoid or not get burned.
Thanks for any input
Febus
Totally check out the potential partner. Ask for references and make sure that s/he has done what is claimed.
I usually go with forminmg a new LLC or limited partnership that clearly spells out who is responsible for what, how the profits/losses are split and what happens if someone defaults on their obligation.
Why would someone wnat to partner with a newbie greenhorn?
A: Because they’ve already messed up their credit beyond recognition and can’t get a cup of coffee on credit.
Now, recognizing their inability to manage their own credt, why would you let them anywhere near yours? My credit score starts with an “8” – no way on God’s green Earth that I’m gonna let some knucklehead that trashed his own credit anywhere near mine…there’s not enough money in the world.
So you 're telling me not to be a credit partner at all!! some of the answers i got are telling me they need me because you can only buy so much on your own (credit) or to add me to their ‘‘pool’’ of investors.
Are vall these people knuckleheads and in the affirmative , what would you advise me to do to get my feet wet.
Thanks again
Antoine
Why not just throw the money in a self directed IRA and do mortgage backed notes to other investors? We do it all the time. I have money in my IRA that I can loan to investors that I trust. Once they get a project, you can secure the note with a lien on the property, asking for a specific return.
