I'm still really new to investing and what actually goes on in the process, but rather than go at it alone I thought I'd ask an experienced investor to join in with them.

Just today I met one of my broker's big investor clients. (I've asked around and I guess this guy is really well known and one of the best) I made small talk with him and told him that I just finished paying college/grad school and managed to save up around 40K in the bank.

He was in a rush and on his way out so I really didn't understand what he was talking about but he said something along the lines of "I'll do the 2 family on Field Street with you, have everything fixed up and co-sign the mortgage." (Bank owned house listed at 120 resells at around 205 in good condition.)

Just wondering what he was talking about and what part I play in this whole transaction. I assume I have to put 10 percent down at least and assume the mortgage. In terms of profit what does this all mean if I'm cosigning with someone?

I know he has a good reputation for supposedly helping other people make money but I still would like to know all the details to make sure I know what I'm getting into.

Thanks again.

I would sit down with him and get everything clarified before doing anything. Personally I would not be comfortable doing a deal like that with someone I do not know. I have done 5 flips on my own and have learned from my mistakes and improved. I have not lost money on any of them, but there is always room for improvement.

I think if I were you I would see if this guy would let you tag along on a investment as a learning experence off him some free service such as doing the research for him on homes he is interested in, going to the recorder of deeds to check on stuff, that sort of thing, to make it worth his while.

I'm with Summit: I would offer to help but I would be wary of any fast talk trying to get you to sign something with the old "trust me" line. I had a friend of the family try to use me as a strawman buyer. These guys were going to get something like $200,000 back on the purchase. I would sign all the papers and put the deal in my name. If after 1 year I wanted to walk I would quit claim it to some corp/llc they start. Get this! I take all the risk and they get 75% of the profit. I would get $50,000 at close and they take $150,000. I said goodbye.

Your information is a lot short on details so meet with the investor and get the full details.

From the way it should he has offered to partner with you on the deal. You will be on the mortgage as a co-signer and will likely split the rehab costs. Sounds like a 50% partnership to me.

You get to watch learn from an experienced investor and make a little profit in the process. Sounds like a good deal to me.


I normally do things a little differently but certain aspects will vary by state.
I always buy with my corporation and take title in a Land Trust with th Corp as the beneficary of the trust.

When I partner with new agents/investors on the first deal I normally go 60/40 because I am doing more of the work and also teaching them the process. A seperate partnership is formed at the start of a project. Normally I will purchase the property often with creative financing to limit my out of pocket and the holding costs. The new investor will be paying the majority of the rehab budget. Upon sale the money goes into the Corporate account. All expenses are paid out wich includes any out of pocket expenses either party put out during the project. The remaining profit is split per the agreement.

Now if we worked well together we partner on a new project and if the new investor performed well and has a firm grasp on the process we modify the partnership agreement to a 50/50 split. If not and he or she wants to do another then the terms remain the same. Often it will not be till the third project that the split goes to 50/50 because that is when my new partner begins to feel comfortable with making many of the decisions on their own. Doing it this way they avoid making the mistakes I and others have made when starting out.

Thank you summit,drm and Paul. I should be seeing this guy later tonight and talk more business.

Paul, if it's a 50/50 thing I'd definitley be interested in just learning from someone more experienced even if the profit might not be that great.

I'm guessing the cost of repairs is around 50K. I hate to temporarily part with a lot of my savings, but it seems like non risk takers never seem to get anywhere with regards to real estate investing.