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
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…
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.
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.
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.
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).
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.