Quick Update for 2018

I just thought to shoot out a quick email as we really start digging into 2018. First of all, a heartfelt thank you for those of you that participated with me in acquiring assets during the past year. In 2017, we acquired 17 assets for our portfolio. I feel pretty good about that as I am working to increase the note portfolio and balance a day job. I have to say I have gained much experience during the past year, and look forward to bringing that as we move through 2018.

Not only did we acquire 17 assets, but I’ve built new relationships, added new vendors, tools, and streamlined processes to add to our business. Now, for 2018, I have set some lofty goals. I believe that we can acquire 60 assets during 2018. That breaks down to 5 a month. I believe that is achievable, with your continued support and the ongoing refinement of our processes. It’s all about building the system. This is feasible as I continue to enhance the processes for acquiring, completing due diligence, and working with my vendors and services, with the primary purpose to bring better returns to you. As I purchase more assets, the note sellers begin to provide better prices, and everything grows from there. More volume, better prices. Should we reach the 60 asset level, the ultimate goal would be to move to full-time note investing.

As we move forward in 2018, it was apparent I needed to revise the Joint Venture Agreement. The changes to the Agreement are relatively minor and add clarity. Basically, the changes are:

Replace any language stating “Joint Venture Partner” with “Joint Venture Investor”. When we enter into a venture, we do not become partners. Rather, this is a Joint Venture designed for a specific project. A partnership is not formed. Structuring as a Joint Venture allows for both of us to engage in business activities unrelated to the specific investment, and significantly reduces any IRS and business registrations required when forming a partnership.
Eliminated some redundancy. There was a paragraph that simply restated the intent of distribution of funds at the liquidation of the asset that was described in the previous paragraph. This repeat isn’t necessary.
Added a clause pertaining to the distribution of any payments made by the borrower. As the primary model for this business is to keep borrower’s in the house and have them start making payments, the previous JV Agreement didn’t clarify on how those payments were to be distributed. The language that stated how funds would be distributed when we liquidate the asset remains the same; I’ve now included language that governs the distribution should the borrower make payments.
Added a clause on resolution of the Venture in the event of death by either party. While we both think and hope this won’t happen, it is prudent to add a clause on how the JV would proceed in the untimely death of either party. Thank you to those that asked that question.
General clean up of language and grammar, for clarity.

The Draft JV Agreement is exactly that: a draft. This is the template I complete, adding specifics to the asset, should we decide to engage in an acquisition. The draft is somewhat flexible. An example is that the template is written for an entity (LLC) to entity (LLC) agreement. If you do not have an entity, or you are investing with your Self-Direct IRA, we amend the agreement to fit that scenario. Let me know should you have any questions about the revised JV Agreement. Here is a link for your review, comments, and retention:


Finally, as we move forward, I’d like to hear your plans for investment for the new year. If you could let me know your level of commitment, funds available for investing, if I’ve become a nuisance, and your expectations in working with me for 2018. This feedback is essential to verify if my goals for 2018 are realistic. I can not do this without your involvement, support and investment. I appreciate you more than I might mention, but you are important to the continued success. Please let me know your intent for 2018.

Thanks again for all your support. I look forward to moving forward in 2018 with you.

Together, our potential is infinite!

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