User Power
Value/Post Ratio
456%
- Jul 24, 2007
- 4,228
- 19,297
I have some old friends that saw my success in real estate. They wanted to be part of it. I partnered with a couple of them on a few deals years ago.
On one deal we made an arrangement that we would all purchase and refurbish three properties (21 units) together. I put the deal together with absolutely no help from the other three. I then proceeded to make plans for the rehab which required an approval from the city. Again with no help.
After 5 trips to the city (a four hour drive for me) I was able to get the rehab plan started. I tried to divide up the responsibilities amongst the partners to get things done. When things did not move along, I took control of the entire project again. They did come up and help with pieces of the rehab but I did the brunt of the work.
When it was all completed, I worked with the agent to get the building sold. I also managed the property during the entire process for free because no one else was willing to do so.
When it was done, everyone made about 150% return on their money in less than a year. I heard many gripes about how we could/should have made more money but not a single "thanks". They wanted to know what deal we were going to do next. I suggested someone else for them to go to as I would no longer be taking on partners.
One of the partners took my advice and invested with the other group. He bailed out of that investment early and lost money as a result. He wanted me to give him the money that he lost.
I was no longer friends with any of that group after that.
On one deal we made an arrangement that we would all purchase and refurbish three properties (21 units) together. I put the deal together with absolutely no help from the other three. I then proceeded to make plans for the rehab which required an approval from the city. Again with no help.
After 5 trips to the city (a four hour drive for me) I was able to get the rehab plan started. I tried to divide up the responsibilities amongst the partners to get things done. When things did not move along, I took control of the entire project again. They did come up and help with pieces of the rehab but I did the brunt of the work.
When it was all completed, I worked with the agent to get the building sold. I also managed the property during the entire process for free because no one else was willing to do so.
When it was done, everyone made about 150% return on their money in less than a year. I heard many gripes about how we could/should have made more money but not a single "thanks". They wanted to know what deal we were going to do next. I suggested someone else for them to go to as I would no longer be taking on partners.
One of the partners took my advice and invested with the other group. He bailed out of that investment early and lost money as a result. He wanted me to give him the money that he lost.
I was no longer friends with any of that group after that.