Notes

I had an idea inspired by what you said earlier. It's more of something I've been thinking of for a while but this ties in. So for example I do real estate/have knowledge of real estate. Most people I know would love to be home owners "someday". Home owners I know would love their ownership to have fruitful returns one day/would love to invest in something they're now familiar with (purchasing another home whether for investment or an upgrade to their current situation). Most people don't follow up on these aspirations for what I'd like to think are due to 1. they have little to no idea what it entails to execute these goals, depending on the scenario. 2. they don't have the money 3. they don't have the time. This is a good ranking for these 3.

A specific example is you, in that I believe you have the ability to purchase real estate more so than you think you just don't put a mind to it because you have the privilege (white privilege jk) to have a preference in when and where you do things. This isn't a big deal and is the normal for most people in your or similar situations. Another specific example is Aaron, he has a deep determination to own real estate one day. He wants a home. Above and beyond that he wants to own a restaurant one day. His problem is not time but money (and he doesn't know what goes into following his goals). So numbers 1 & 3 on what I laid out above. I've always thought if I had the money I would buy a home with Aaron to help his goal. What I mean is I would buy the home myself, take an investment down payment from him, and be the homeowner but he could live there. This is of course, if he can't just do it by himself and yes he's essentially renting but the twist is he'd get his investment returned on sale plus a portion of the profits. With his investment I would write a contract stating how he'd get the % he put down worth out of the property if we sold one day/rented it out, or a flat fee of the actual number put down + whatever we determine (which would be easier for residential purchases). On the mortgage it would be my name so legal ownership would be mine. I started thinking if this was in any way shady but I don't believe it is if I explain this out to him as I think he, as a friend, would do it because Aaron specifically doesn't want the liability (aka responsibility).

Now I don't think this will happen but what if, as a future investment firm (so it's more official than an individual) this was done for people in general, for anything. Essentially creating a branch of the investment firm is being a lender to others in addition to the firms original mission in helping solely the firm grow. For example a first time home buyer, or just someone who wants to invest in real estate like my friend Trevor or Mitch even would be good candidates. If we were LLC'd up we could have a contract that stated how we could look for that investment for the person, tell them an estimation on what would be needed down for it, an estimate on what could be done once it's fixed up, and an estimate on what a return would look like- all that would be done is they'd split the investment equal to the % of what was put down or that flat amount in excess to their initial investment. I know how to do all of this. An example would be there are a few homes under 150k every year. There are a few for under a 100k even. So lets say this 100k home needs only 5% down if purchased conventionally (which it would be through the firm) and it doesn't need more than that because it's such a little number for the home, plus minimum down is needed for plans to flip. I could personal give a market analysis for the area and determine what average home value is and lets say it's 150k which is not a stretch at all because most neighborhood don't have homes for under that amount. The 100k home would be 5k out of pocket upfront and 10-15k in rehab. After that 115k investment the works done shortly after and it sells for the 150k market value that's a pocket of 35k+ in as little as a month depending on the work needed. Numbers like this is why there are full time investors for one but back to it, that person helped would get their 5k back plus lets say another 2k just for giving the money (so the flat amount instead of a % amount). Getting back 7k after giving 5 in a matter of a month (for closing) plus a month (for rehab) is a good investment.

Now this is a small scale and we don't have to do this because you and David each have the ability to buy that home by yourselves and get the entire return yourselves. This is what I've been talking to you about for the past few months about how there's easy money in real estate and you currently have the ability to do this. But anyways as an investment firm we could take in people's money as earned income, so it shows on our taxes, and use it to leverage us to buy bigger things. What I mean is if you, David and I all get qualified to buy something together lets say there's 500k worth of buying power but if incorporated first we can run an investment campaign to obtain outside investors into our investment firm and lets say we get 3 backers totaling another 50k in cash. We (aka the company) can now buy 700k, probably more, worth of real estate all because we incorporated and are not now individual purchasers anymore. Under this scenario commercial real estate/businesses are able to be purchased and the % payout would be better to factor in. My Aaron example was small scale and was to help friends purchase homes (if I had the capital) this scenario is larger in scale and can help buy an unlimited amount of things depending on additional investors acquired. The point is most people don't know what to do to invest in real estate and this presents and opportunity for them to do that if they do it with friends (us) or something they trust (an investment firm). A real example is after the firm is created, we get 2k from Aaron/Mitch/Trevor/whoever else, for example. Well we just gained an extra 6k at least for a down payment that we now don't have to produce ourselves. We purchase something in the firm's name and upon sale or per year profits (if what's acquired is a business) we return that % to to the investors. It won't be much to them but them getting their 2k back after a few months or a couple hundred dollars a year if it's a business is sure a prideful thing from their perspective and how they are doing something about their goal in investing in real estate. We just present the easy avenue for them and others to do that.