Private Money Partnering

Evaluating Opportunities

Chapter I Evaluating Debbie Or Dan Has-A-Deal

Important Factors to Consider

Important Factors To Consider

You'll need to think about these factors when you’re evaluating Debbie or Dan. Will you be a fool and soon parted from your money? You’re in charge of how much your money is worth. It’s your gold, and according to the “golden” rule you’re in charge of how much it’s worth. Given this, what do you want to know about this person who brings you the deal? Not the deal, but the person who brings you the deal?

Real Estate Experience

You want to know not only what kind of experience, but what kind of successful experience they've had in putting together and following through on real estate deals.

Results

What were the results of their projects? Are they still working with other partners? But what if someone new to investing brings you a deal and they haven't done real estate deals before? You think the deal might be quite good. You can smell it and sniff it and it looks like it’s good, so how else would you be able to evaluate them?

Financial Stability

Is their personal ship afloat or foundering?

Character

What kind of ethics, personal references, business references and credibility do they have?

Project Management Experience

How much have they had? In another career have the deal makers had project management experience, or departmental management experience? Do they understand timetables and deadlines?

People Management Experience

Are they comfortable with being in charge? How many people have they hired and fired? If contractors are hired and they don't perform satisfactorily, they'll have to be replaced. Have they had experience with contract labor?

Related Business Experience

Do they have contracting or sales experience?

Line Responsibility For A Budget

Have they had any? For instance, rehabbing a house might be a $30,000.00 project or a $300,000.00 project.

Real Estate Law

How much do they know about real estate law? Have they taken courses, or have any licenses?

Evaluating The Opportunities - Chapter I (continued)