Hi all. I do not have my first deal yet but am doing alot of research. I happened on a pre construction ad from a real estate firm that, for a small deposit, $6000 to $10000 would secure a lot, find a builder to build a home, find a realtor to sell it upon completion and split the profits 50/50 with the investor… me. Basically I do nothing but give a deposit and have good credit for the construction loan. I feel like the real estate firm is just a middle man but it does sound very easy. Is This A Good Deal? What things do I need to know about deals like this? Thanks
Hi,
I wish you good luck for your future RE investments. The first deals are very important ones, because are those where we are more exposed for the lack of previous experiences.
I can t discourage you on starting through a partnership, since it was exactly that way i started out 13 years ago.
Nevertheless, i remember that to be successful we MUST trust in NOBODY, not even in ourselves, or what we believe to be our instincts. So, be aware…
Paulo
Paulo:
You just left us newbies on the busy free way without a sense of direction. We would appreciate you shedding some light in our areas of darkness. There is a reason why you have thirteen years of experience and we have but a couple of days.
Oski,
I think that he was trying to giveyou a pointer that you need to know well:
Trust those that prove trustworthy but verify their answers anyway.
Keith
Keith:
How can i be like you: a man full of wisdom and fulfillment? Must be all the time and effort you have put to make this world a better place.
I think this is a rotten deal for you. you put down the deposit, probably take out the loan, carry all the risk, and then split the returns.
i just came across 15 lake-side lots in utah with a 7.5k deposit and 12 month build-out time. i snapped up 3 and passed the rest onto other investors. i know that another developer is going to be sellilng similar lots in 5 months for 35k more. plus there’s another 7 months of appreciation while the house is being built.
if you’re taking all the risk, you deserve all the reward.
Hi there,
I ll try to be more specific this time:
I know how difficult it is to overpass the initial fear we naturally feel on enbarking ourselves in such a journey, specially alone.
In my case, it wasn t RE investing immediately, since as i am a civil engineer, i began as an entrepreneur: i began a contracting firm on building business (in 1992) with an elderly partner. Investing in RE came later as a constructor/builder (in 1994) after i had seen that my work was enrichening my customers!
But what i was trying to tell you, without the pretension of giving an advice, was that you should not believe other people ( me included?!), as that business didn t smell me too good ( and i didn t want to be so clear as Niravmd did) ?! Who am i to give this advice to you? My experience is made by trial and many errors, so i m possible not worthy of credit, and as Kdhastedt already pointed out you should verify everything is said to you personally.
So, don t be in a hurry to catch this boat, as in my country the older man use to say something like this: " there are more tides than sailors" ( and we don t know if you are porposed to one much better).
Good luck,
Paulo
Thanks everyone for the words of wisdom. I will certainly tread softly and do lots of due diligence, and hopefully gain some experience along the way.