Bringing on a partner with financing available or going it alone?
Hey Everyone!
I'll try to make this short but I have a dilemna on my hands.
I would LOVE to flip houses for a living. I probably watch more HGTV than any other male 24 year old on the planet. With this in mind, I am looking to get started while keeping my current full-time job.
So I'm in a unique situation at the moment. My landlord also wants to get into house flipping with me (he is a few years older than me). While he has become a close friend I don't think he is actually passionate about flipping but really just wants the extra income. However he is a good worker and understands finances better than most our age.
This landlord happens to have a well-off father. Enough that he would be willing to lend us 300k in return for 10% back on that per year. Obviously I am not likely to find financing like that just starting out even with great credit. He would like each of us to put at least 20k down (which we can both do) for each 300k loaned.
Of course that this means while my landlord and I would split the work (which we plan to do some of ourselves) and responsibilities we would also split any profits. We both work flexible schedules so between the two of us we could be available any day if needed. Also, his dad is well off enough that even if we didn't get any return for him it would not affect their relationship (although he might be more reluctant to loan in the future).
What would you guys do in this situation?