e were looking for real the rehab and remodeling costs,
estate partners because and it looked like we could make
we were new to the Tucson some money. There would be a
area. We found that two identical third couple involved, so the
houses here can be $50,000 apart expected $75,000 profit would be
in price if they are three blocks split three ways. Agreeing in
apart. Also, the styles are principle to the deal, we
different from anything we had in arranged to meet the other
Michigan, so it would be good to partners at the house after
have some help figuring value and closing.
what buyers want.
Too Many Real Estate Partners
At the Arizona Real Estate
Investors Association meeting I Six people with six opinions can
announced that we had money to be a problem. I never understood
invest in fixer upper real why the beautiful wood floors had
estate, and we were looking for to be torn up and replaced with
partners. The host wrote our carpet. For that matter, I never
names and phone number down on understood why they couldn't at
the overhead projector along with least be carpeted over without
the others. About three days the expense of tearing them out.
later we got a call. Both my wife and I thought it was
a crime to stucco and paint the
Sam and Nikki were nice people, beautiful brick exterior of the
and we got along well when we house, but were assured that
met. Their offer had been buyers here would like that
accepted on a house. Looking at better. Raising the roof of one
the comparison sales they had room seemed expensive and
found, it seemed like a good buy. unpredictable, but the ceiling
They had done rough estimates of was a bit low.
amicably.
There were plans and new plans,
and weeks of stressful We learned a lot. I've had
anticipation evolved into partners before, but I let the
stressful worrying. We discovered partner take my money and do his
that the houses in the area were thing to make us a profit. This
selling for less than we group decision-making, especially
initially thought, that the rehab with so large a group, just
cost would be more than we doesn't work, at least not for my
thought, and that all the other wife and I. One day, standing in
partners expected to do much of a Home Depot hopelessly looking
the labor, rather than hire it at carpeting samples, I also
out. The profit projection realized that non-financial
dropped from $25,000 each to contributions need to be clearly
$10,000, and we felt there might defined according to each persons
actually be a loss. knowledge and skills.
We dropped out of the deal. We truly hope they make a lot of
Fortunately the other partners money on the project. If they do,
had procrastinated for several we may even be willing to be
weeks on the signing of the joint partners with one or the other of
venture agreement. They also were the couples. If so, though, we'll
decent people, and had noticed just look at the plan, put up the
our anxiety. Nikki called to money, and let them do their
suggest we let them find a way to thing. That's my idea of real
finance it without us, about two estate partners.
minutes before I was going to
call to say we were out. It ended
About the Author:
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Source: www.isnare.com
