Finding a Money Partner (JJ 679)
Transcript:
Jack Butala: Jack and Jill here
Jill DeWit: Hello.
Jack Butala: Welcome to the Jack Jill Show entertaining Real Estate Investment Talk. I'm Jack Butala.
Jill DeWit: I am Jill DeWit broadcasting from sunny Southern California.
Jack Butala: Today Jill and I talk about finding a money partner. It seems like a simple thing, and it can be simple, but people avoid it. I wonder why. It's not real complicated.
Jill DeWit: Isn't that funny? People have deals and I think that they go, "Oh, I don't have enough money, I can't do these deals," instead of going, "Wait a minute, I need to find a partner to get this done because it is that good of a deal."
Jack Butala: That's a [crosstalk 00:00:32].
Jill DeWit: That's what the thought process should be.
Jack Butala: It never stopped Bill Gates, it never stopped anybody.
Jill DeWit: That's true.
Jack Butala: Any iconic business person, without exception, did not have the money to start their own company.
Jill DeWit: Right.
Jack Butala: They sought it from somewhere else.
Jill DeWit: Exactly.
Jack Butala: For whatever reason, we don't talk about it that much. Not us, but we don't talk about who's the money behind that whole thing?
Jill DeWit: That's funny, and they don't realize that the people that have the money, want to spend the money, they're looking for them.
Jack Butala: I know. That's truly what this show's about, Jill. I'm glad you brought it up.
Jill DeWit: Thank you.
Jack Butala: People who have money would love to hear from you if you have a good real estate deal.
Jill DeWit: They want their money to be more money, huh. [crosstalk 00:01:08] thought.
Jack Butala: They don't really wanna find a real estate deal themselves.
Jill DeWit: Right, they'd just rather sit back and let you invest their money and make a profit. Everybody wins.
Jack Butala: Here's a key point we're gonna talk about today: trust. Before we get into that, let's take a question posted by one of our members on the JackJill.com online community. It's free.
Jill DeWit: Okay, Brian asks, "I am drafting the terms for a purchase agreement for vacant land sale deals for a portion of the sale amount I will finance to a buyer. My question is regarding the potential buyer default. What time period can I list for a default period on the loan before I dissolve the agreement and the property reverts to me? These properties will be all vacant parcels at the time of sale.
I imagine this becomes complicated, the parcels are primary residents by the time of the default. I notice that most of the contracts like this I've seen don't address this issue, perhaps there's a reason for that. As an addendum, can I stipulate that no permanent development can be allowed till a certain percentage of the loan is fulfilled?"
Jack Butala: This is a brilliant question.
Jill DeWit: Yeah, that was a good idea, too.
Jack Butala: It's perfectly crafted, Brian, thank you. I really appreciate that. May I, Jill?
Jill DeWit: Mm-hmm (affirmative).
Jack Butala: All states are different, first of all, so the answers to most of these questions can be...