Hello all,

First of all I am new to this site so HELLO!

I am getting back into RE investing in NJ. Since I don't have the cash but I do have the resources and local connections in county courthouses, I wanted to find OUT OF STATE investors/partners. I have tons of foreclosures on undervalued properties in great neighborhoods!

Ideally, I would like to find someone out of state with the desire to expand their borders and split profits 50/50. I could do all the hard work, present the cream of what I find in pre-foreclosures, then that person could offer up the cash so I can option it for us. The investor could then take the property or sell it to a buyer. I am getting nowhere fast with $500-1000 fees for bird-dogging and I want to step up.

Maybe I am naive, but I think this could be valuable to someone. We could form a partnership; I could do all the searching, inspections, options, closings, etc. and the investor could simply approve and collect a profit.

Any good websites that can be recommended? Also, is there a place in these forums that would be ok to post/advertise that I am looking? I am new and don't want to break the rules.

Brian
Mount Laurel, NJ

I'm not sure you will get many investors with the 50/50 concept you have. Them putting up 100% of the Money, taking 100% of risk and you taking 50% of profits.

While your "legwork" may be worth more than your collecting... it is a far cry from 50% upside payback and no down side chip in.

Most Hard Money investors will not put a penney in until you can prove you have at least 30% involvement in the deal on the money side... your time is considered free to them, as it should be... that is part of your risk investment.

You also have to have a track record before most will work with you.

You need to consider alternative methods of developing funds or controlling properties rather that cash purchases... that is how most investors with low funds, get a start.

If you ever find a real web site like your looking for.... just be careful.

Hi Reality,
Thanks for your honesty.
I have had many investors respond to some of my posts at other sites and most were very interested. The problem is, most were either other bird-dogs or some investors that were all talk.

For conversation's sake - I did receive plenty of encouragement from other investors that did the same thing and had all they could handle. They felt it was very fair. All they had to do was put out $1000 in earnest money for an option and other minors fees, flip the properties if they were not keeping them and give the partner his share.

One gentleman said he went from doing 2 properties a month locally to 6-7 a month once he formed an LLP with someone out of state. He was GRATEFUL for not having a larger workload to deal with since it was now shared.

These real life stories are why I feel this is possible and fair.

[This message has been edited by snjbrian (edited 08-09-2004).]

PS-
If not 50/50...do you think 70/30 might be more attractive? If I could make 3-4000 instead of just 1000, I could begin to invest my own money! lol

Thanks again Realty and sorry to bug you. I am sure this topic is super redundant with newbies.

It would not be impossible to find a 50/50 partner like your looking for... just extremely difficult for someone new to have some one trust to that degree.

I know of several set ups where experienced investor/ agents / brokers work deals like 80/20 where the agent / broker puts in 20% of actual money and the expertise and shares 50/50 on profits... I occasionally do that myself but prefer not to have the administrative burden and work independently when ever possible or flat fee basis which is far above real estate commissions depending on what type deals I develop for my investor clients. Key is I can only get these because of past performance I can show or strong referrals from past clients which is where I get more than 80% of my new investors at this time... but it took 5 years to get to this point.

Far easier to start doing Sub-2's and flips... get control of the properties... simple bird dogging only gets you a few hundred dollars while being in control of properties get you thousands in flips.

Brian...
Reality is very close to the truth on this stuff... Although it is not impossible it will be hard.. Please keep in mind that I have seen people just luck out and find a partner like that.. I wouldn't stop looking, but you might have to be a little more reasonable in your "beginning" expectations... Note I said beginning... Regrettably there is alot of greed running around Real estate...

Now Reality is also right.. Try and get some property by being very creative... Creative deals work, they are not fouond every day but they do exist... So try Subject toos, lease Op's, etc. etc...

Keep up and don't give up...

Duane

OK...cool. Thanks Duane and Realty!

Good advice and insight is worth a fortune to the beginner like myself. I do have a very realistic view of all this. I just wanted to see what the opinions and possibilities were. The bird-dogging sucks because I have to put so much effort and get everything just right and then I get some pittance.
I am going to try to option as much as possible and flip for bigger profits until I can go solo.

I may have found an investor or two that is serious about 50/50. We will see went it comes time for any legal agreement to be signed! lol

Hi Brian ,
I am from New Zealand, I think your idea is great. We are also trying to find equity partners to make an advantage when you buy.If you have cash first you can offer less, they get a quick and sure sale, and you get the best deal.
What other places did you post this inquiry?
cheers
Terry

Anyone remember the saying "if its to good to be true then its not". From what I read in your post your asking people to send you money so you can "invest" it. So If I simply send you money you will do all the work and in no time you will be sending me 50% of the profits. Sounds easy enough. I am new to the Investing thing but not dumb. With all the scams that are out there these days its hard to beleive something that is posted on line. How many of you get the spam that says you have to just click here and your rich. I'm not saying that this is not legit but it seems to me if you were a seroius invester you would at least have some funds. As they all say "Buyer Be Aware"! I'm confused why you want out of state help?
Sorry to be a pill.

[This message has been edited by Bonnie79 (edited 09-14-2004).]

Hi Bonnie,

Well you make a good point. Everyone has to be careful but you are also looking at it too simplistically. I am NOT telling someone to send me money...lol

I am looking to create serious legal arrangements with someone. My thinking is that we both have attorneys and all agreements are agreed to by them first. If a deal comes my way, I can share the details with an equity partner. If they like the numbers, we move forward. If not, that is fine too. Our attorneys could make sure BOTH names are involved so there is a track record.

This occurs everyday. Businesses do this all the time, stock invesotrs, REITs, Index Funds, they all do these very same agreements. I know...I was in finance for several years! lol

There is just no way that I am going to do all the hard work and make all the deals happen for a lousy $500-$1500. By the time postage, effort, etc get done with you, that $500 is a pittance. Besides, most of the real serious investors/people I have dealt with are offering about $2500 fees to bird dogs.
I don't need an equity partner. I have already done 5 of these over the past 5 months(1 per month). I can do those kinds of fees until I have the extra cash. I just wanted to move things along a little faster. If I had someone behind me and I could make some strong cash offers on the foreclosures I am finding in northern NJ, I could be evenly splitting 40k with someone! Now, Bonnie, wouldn't that motivate you to find an equity partner? I think so. lol