JV on a flip to gain experience?

Question

This may be absolutely crazy, I really don't know how this typically works but I'm incredibly motivated to start flipping houses. I can watch all the YouTube videos and read the books but there is nothing like doing it.

Has anyone done a JV with a flipper just to gain experience? I would be willing to take $0 but just be along for the ride. I want to learn plus it would help me qualify for better money terms with experience

Chad Shultz · Answer

Douglas,

What the others have said about bringing something to the table is true, but only to a degree.  If you actually want to get started, you need to start networking.  Get to know other investors who do what you want to do.  Have discussions, buy them lunch to get through some Q&A, etc.  While it takes a little time, you will start to develop relationships with the right people and you will be able to step into a project with someone.  The BEST was to accomplish this is to visit your local REIA. (Real Estate Investors Association).  You can find one in your area by checking NationalREIA.org.  Start meeting and talking, in person, with those who have boots on the ground in your area.  This is one of the best first steps you can take.  Don't fall into the trap of feeding the machine of all the online "gurus" who just want to sell you the next big thing.  The folks at your local REIA genuinely want to help.

Chris Seveney · Answer

Let's start with the first question: what are you bringing to the table? Do you have the cash but no experience, or do you have the experience and no cash? If you do not have either, that would be very challenging, because most contractors are not interested in "teaching" somebody. Your better bet would be to possibly try and get some type of job in the contracting field.

Joel Miller · Answer

This is a very deep subject, so I'm just going to say that joint venturing with a flipper is a "thing" but it typically (if you are not the half of the equation that knows how to rehab a house) involves you putting up all the money and someone else doing all the work. Then you split the profits in a predetermined fashion. Dangerous territory. The first three houses I flipped over 30 years ago were done this way, although I was the one doing the work or otherwise controlling the rehab. I've flipped over 100 houses since then, and none of them had any partners except those first three. But it got me started. It's said that when one party has the money and the other has the experience, the one with the experience ends up with the money, and the one with the money ends up with an experience. I made sure my investors did not have a bad experience.