LandInvestors.com Forums **Ask A Question** Running out of money

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    Luke Harris
    Participant
    Post count: 146

    @admin
    @jilldewit
    @lukesmith

    I’ve bought 8 properties and I have signed purchase agreements for 10 more with more sellers calling every day. I’m starting to run out of money! From the research I’ve done, doing deals without money requires one of the following:

    1. Buying on an option-from what I understand the only way to do this with $0 is to find a company that will do a dual closing, I have been unsuccessful in doing this so far but I’m still working on it.

    2. Assigning the contract-All the offers I send out have a clause in them allowing me to assign the contract, but I have not taken advantage of this yet. Can I advertise a property for sale with the intent of assigning the contract I have on it and without yet owning it?

    3. Finding an investor-Jack and Jill as well as other Land investors talk about “Doing deals together”, does this entail some kind of written agreement? Is it typically one person doing the work and the other person putting the money down?

    Which one of these three do you recommend? Are there other options that I am unaware of? Are any of you interested in “Doing a Deal” with me?

Viewing 11 replies - 1 through 11 (of 11 total)
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  • Milan
    Participant
    Post count: 523

    Congratulations Leke! That’s a proble we will all face I guess. It’s a good problem. This market is huge! I’m getting there too.

    My solution is to start selling everything I have more agressivelly – love ring price, And with the last cash I have I target higher quality properties. I don’t mail to lovest assessed values. I go for higher and offer the same 100 per acre.

    Milan
    Participant
    Post count: 523

    I’m sorry for my spelling here! I don’t double spell check what I wrote. I just fire it out. Maybe I should spell check it. But who has time for it. There are many land deals to close! 🙂

    Troy
    Participant
    Post count: 31

    @juholm @joshgeorge @luketsmith (bring you into this thread – similar to thread just posted in chapter 8)
    @lukeharris

    Luke,

    I have been searching this site/topic for a post that gets into the specifics about “how” to partner on deals. You mentioned “finding an investor” to partner with in your notes above. So I thought I would jump into the discussion, and bring over a few people from a similar thread just started in chapter 8 forum.

    I am familiar with the structure on an option deal, also familiar with the structure of an assignable contract type of deal, but need more details on how to work with a “money partner” on a deal and understand the process of how a deal like this would happen. Especially when you have no working history with the “money partner”!

    I am curious about partnering on “single deals” and NOT setting up a formal LLC partnership for multiple investments – my questions are as follows:

    How do you set this single deal up on paper?
    What documents would be used to lock up the property, close the deal?
    Who is the “Buyer” listed on the contract?

    How do you ensure “in writing” that BOTH you and your partner get paid?

    Would you just use an assignable contract and assign the deal to the money partner for a fee…is that it? OR is there some other type of “partnering” arrangement that is more common?

    Thanks
    Troy

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    @troy you can write it on a napkin if you want to. I think you are over thinking this. In the time it took you to write this post you could write:

    Land to buy in partnership between Luke and Troy
    APN ,,,,,
    Legal Description,,,,
    Troy to do all the work buying and selling it for an agreeable price.
    Luke to put up 100% of the money.
    Land to be kept in Luke’s companies name ……Adventure LLC
    Troy gets 15% of the gross profit for finding the deal and doing all the work after the land is sold for an agreeable price and funds are settled.

    There is a lot missing here but you get the idea.
    Should add who does the taxes, names and address of parties involved, what happens if there is a disagreement, what if someone dies, what if someone wants out of the partnership, the list goes on and on and on but it is not all needed to do a deal.

    Just keep it simple.

    Troy
    Participant
    Post count: 31

    @luketsmith

    Simple is good.

    Based on your outline of a basic “partner agreement”, it seems that doing a deal using a simple option agreement or assignable contract as described in @lukeharris original post above would be the more simple and preferred type of agreement/structure for single one-off type of deals.

    Thanks again.

    Troy

    Justin Holm
    Participant
    Post count: 15
    Pro

    @troy

    I agree with Luke Smith, just keep it simple. With one off deals that are not huge, just do a simple agreement as listed above. You can have the agreement notarized as well if you want.

    For larger deals that may involve subdividing and much more going on, consult a lawyer. I have been involved in two larger deals in the past and one of them involved an LLC. I ended up buying both of them out because they needed cash or just wanted out.

    Just saying that some of the extras that Luke Smith mentioned at the bottom of the post should be considered.

    Again, don’t overthink it. A napkin works fine but a piece of paper may work better.

    Daniel Bear
    Participant
    Post count: 44
    Pro

    Would anyone be open to sharing their Partnership Agreement template with me if available?

    beardanielm@gmail.com

    Charlie MacConnach
    Participant
    Post count: 3
    Pro

    I have the same question as Daniel. Does anyone have a basic or generic agreement they are willing to share for a simple one-off type of money partner deal?

    Thanks
    charlie@sunquestacres.com

    Richard Castle
    Participant
    Post count: 21
    Pro

    Hi everyone,

    Below is a link to a basic partnership agreement. Feel free to download and use it.

    https://www.dropbox.com/sh/864vr4o0ze7i0tl/AABMr2Fk_9OOheOBGnSDTatTa?dl=0

    Daniel Bear
    Participant
    Post count: 44
    Pro

    @lukeharris
    @danpotkay

    I just want to give a quick shout out to Luke Harris, Miriam B. and Dan Potkay for investing the time & efforts required to create the “Partnership Investment Agreement” link above from Richard Castle.

    Kathleen DeNault-Ridge
    Participant
    Post count: 140
    Pro

    I don’t think the link is working anymore???

Viewing 11 replies - 1 through 11 (of 11 total)

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