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...