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NOOB real estate investor looking for partner

Discussion in 'General' started by redciv1, Mar 29, 2007.

  1. redciv1

    redciv1 Well-Known Member

    Photochick you wrote why should the bank give me money when I don't have any? They are not giving it to me but loaning it, with a very high interest rate. I could see if I had some ill intentions of some sort but this is for a business. I am not asking for handouts, it's kinda like when you start racing and nobody wants to really talk to you and give you the information you need. Everyone wants to be secrective as if to say there helping you will lessen there chances of winning.
  2. SteveThompson

    SteveThompson Banned by amafan

    There aren't any big secrets that I have seen so far. Everyone I have talked to has been more than willing to help. The reality, as far as I can tell, is that to be a long term, viable, ethical and wealthy investor... you need some money to start with. I know it sucks, but it really isn't any different than any other business. There are ways to get money besides going straight to the bank. That is probably, imho, a better place to start than with these infomercial schemes. I think, imho again, that you do want to own and control properties. If I can have and hold even 15-20 single family units (not my goal, just an example) I can retire a very wealthy person. The cash flows even get pretty great as the years go by. It would be difficult for it to be a primary business early on, but the long term rewards are spectacular.

    ymmv...blah, blah, blah... haha

  3. Photo_Chick

    Photo_Chick Leo's Wench!

    We have 3 companies. Used our own cash to start up each one. I'm just saying that for a bank to give/loan you money, you need to be a viable risk and it just doesn't sound like you are right now.

    And of all the guys I know that are racers, they are more than willing to help with any racing questions you would ever have. Hell, I have a hard time getting them to shut up! It's like, I don't race, I don't care what your gearing is! :D

    Good luck in your endeavors!
  4. 9mil

    9mil Yea, that's right

    1) dont ever use YOUR money
    2) everyone is aspiring to be an investor
    3) everyone thinks they deserve to be an investor
    4) residential investment is more proprety management- and PM sucks
    5) buy a coin laundry
    6) add a carwash to your coin laundry portfolio after about 5 years

    Good luck and let me know if you need anything commercial

    Philip L. Fortune
  5. Spicoli

    Spicoli Cannoli Owned

    #5 and #6 are actually very true. My wife's friend inherited a coin operated car wash from a relative that passed, and both she and her husband were civil engineers. After a couple of years they both left their jobs because the car wash was bringing in more than both of their incomes combined, and they got tired of having to spend their lunch breaks going to the wash to empty the change machines and refill the soap dispensers! Just gotta find the right location to put it.
  6. Paige

    Paige BBS FF Champ

    My Dad just opened a coin laundry.....I had no idea they were so successful.
  7. 9mil

    9mil Yea, that's right

    Let me know if he needs any machines, I have abour 45 HighCap washers and dryers - old, but good...AND CHEAP

    Y'all dont know how bad I want a coin-op laundury-

    Paige, your dads in atlanta? Think i could talk to him for a minute? Have some questions about impact fees he might could answer. Thanks
  8. Yup carwashes, coin laundry, and self storage units are 3 of the top small biz's to own. I have looked into both self storage and car washes. Car washes to make profit within 5 years you'll need a hot spot and about 1.2 mil including land. Hey Jason...you know where the new car wash is going up there in Hickory Flat...well before all of that was developed...that is where I wanted to put a car wash...problem is the land was rediculously expensive...just up the road from there where the Shell gas station is...kinda there by the paint ball place...that land behind the Shell was 2mil alone and they wouldn't break it up. I met with the people who own the newer car wash there just north of Holly Springs...by the Pizza hut carry out (exit 14). They have two of those...they are doing quite well. The company that made their facilities brought me by there to meet with them and show me their setup. The company they used, can help you all the way to a turn key company and show you how to run it afterwards.
  9. 9mil

    9mil Yea, that's right

    (quote) The company that made their facilities brought me by there to meet with them and show me their setup. The company they used, can help you all the way to a turn key company and show you how to run it afterwards.[/QUOTE]

    Was that a leasing equipment setup? Is it the 3 minute wash with free vaccum? I was looking into those as well, seems a good bit larger nut to float, but i agree, the best way to make money on one is to own the land outright, and let someone else deal and upkeep the equipment- as long as your not getting raped on the rental- and the impact fees will be quite hefty as well.
  10. Kris87

    Kris87 Friendly Smartass

    phil, what kind of up front dough we need to get going? :D
  11. 9mil

    9mil Yea, that's right

    2 sack fulls - that ought to do it. I only have a small lunch sized bag that is half full....I know you have the rest! Going to look at a coin-op for 30K including equipment later today-

  12. Kris87

    Kris87 Friendly Smartass

    i'm in. i got that much at home.
  13. 9mil

    9mil Yea, that's right

    Yea...this ones for me...too many investors, no money made...

    How about the corner of Hwy5 and Hwy92? we have it for sale for a cool 1.75mil - its quite the deal, if you ask me ;-)
  14. cattitori

    cattitori Code SuperBike Galactic *


    Common sense, really. If you are looking for V.C., this would not be the place as we spend our money on racing mostly.

    My best advice; tell her to get another job, save the money, and THEN buy a property. Soooo.. a. Pay off all your miscellaneous debts. b. Never use someone else's money that you can earn yourself. Boring advice but it's worked for us in the same scenario, and I still get to race.
  15. SteveThompson

    SteveThompson Banned by amafan

    I have been thinking about this since yesterday. Boring day at work and not much else to do I guess...

    In my job I am in constant contact with very wealthy people. We have a number of customers who have made their fortune in real estate. I try to ask questions and learn from them when I have the chance. I have NEVER had one of them say... "control, don't own". I think that is a limited approach. All of their advice I get from them is about the same as you would get from your Grandpa (ie. mostly common sense).

    My wife and I have gone the direction we have with residential rentals because of the built in equity and immediate positive cash flow. I have not found a commercial venture that would do the same (car wash, coin op, etc.). Because of the market conditions here it is possible to have almost 20% equity in a small home within the first 6 months. It is the place where I am the most comfortable right now. As for being a PM... I think it depends upon what you are comparing it to. It hasn't been bad for us so far. With 20 properties (again, not my goal, just an example) you could easily beat the income of any professional job. I think it would be much easier to manage 20 properties than it would be to work a corporate gig full-time. There is no way, in my experience, it would take 40 hours a week.

  16. 9mil

    9mil Yea, that's right

    I own a property management company- It is more bullshit time consuming than you can imagine...Of course age of property, n-hood, quality of tenant all play a part in just how time consuming it is...Now if you quit your job to manage your properties, that is simply managing your investment. at 5% of total collected- its worth every penny of it. I wouldnt walk in the door for less than 10% monthly collected and at least 4% of all repairs and construction with a leasing bonus too-
    But if you keep your day job and try to be a passive owner, it will self implod- you have to either hire someone or be ready to take the calls. and i aint talking 3 houses- more like 20.

  17. 9mil

    9mil Yea, that's right

    I gotta tell ya- this has really instilled my faith back into the wera board- an actual topic that isnt some jackoff spouting off about something.....an intelligent discussion- I thought these were impossible to have on this Board! :up:

  18. Paige

    Paige BBS FF Champ

    Phil - Dad built his coin laundry from the ground. All new everything. He's at the Barrett Jackson auction in Florida right now, so I can't have him call you.

    I work for a property management company....I like the business. Of course we only deal in apartments so I would imagine commercial crap is different.
  19. STT-Rider

    STT-Rider Well-Known Member

    Why should one not ever use "MY" money??
  20. 9mil

    9mil Yea, that's right

    yup- different, but even with apartments, we manage 5 complexs, all are located in the same area- that makes them easier, as opposed to 20 completly different locations wiht 20 completly different systems to deal with.

    Barrett Jackson- must be nice!

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