First time real estate investor

[Michael Davis]

To start out I have been following bigger pockets for around 10 years. I have been studying and educating myself, and I am finally at a point in my life I want to try and invest in real estate. I got my real estate license and had some success my first year as a part time agent and part time w2 employee but my W2 started to require a bit more of my time which caused me to put being an agent on the back burner a little. I have secured a HELOC with a local credit union of $100,000. I ended up running into another agent who partners with investors and acts as a GC and has a small crew of guys doing the work. The prior agreements he has with other investors is they supply the money for the buy and the rehab. Investor pays him a draw to buy material and I assume pay the labor doing the work. The investor is paid the initial investment plus holding costs back then the profit is split 50/50 after all the closing costs and real estate agent fees are paid. He is only doing 2-3 flips per year. I am in a discord community of real estate investors and they are suggesting that the potential partnership is less than ideal. I have some hesitation of trying to find a flip, run comps on the potential deal, get bids from 3 different GC's and execute a flip without knowing what I don't know all while trying to hold down a W2. I'm not sure what to do at this point and I thought I was getting close to getting my first flip going. There is a level of speculation from a third party of why would this potential partner do what is purposed unless he is making out like a bandit. Any and all advice is welcome.

[Nicholas L.]

@Michael Davis

hello and welcome.

obviously i can't speak for this person since i don't know anything about them, but in general i don't recommend that new investors partner, or "split" anything, or do anything creative on their first few deals.

the market is very, very challenging for new investors right now.  there's just no other way to say it.  anyone who says otherwise is trying to sell something.  i am not.

hope this helps

happy to dialogue further on any topic you'd like

i'm on BP to help new investors not lose money