1st off neither of us can leverage our credit. he has $10k to invest.
i can rehab on a dime, and bring a lot of value with minimal cost.
(tools knowledge of outlets/discount materials & sweat equity)
WHAT DO YOU RECOMMEND WE DO FOR OUR FIRST DEAL?
any and all advice welcomed.
?#1 - get more capital / partners?
?#2 - should we put 20% down on a single family flip in $50k distressed market area ?
?#3 - put $500 in yellow cards and look for motivated sellers/ wholesale.
?#4 - look for distressed properties and owner finance.
?#5 - run numbers for Cashflow on a mobile home in CA ??
I am sorry no one has came to give you any help. Although I am a newbie myself maybe I can help give another perspective.
For option #2 you talk about putting 20% down on a single family flip in the 50k range. Well in order to do this you are going to need more capital like you said in #1. With flipping houses you can look in to a hard money loan. Most hard money lenders will cover 70% of ARV. If you have not yet heard of a hard money loan please do.
You can also look into a 203k loan which allows for a lower down payment, but must be owner-occupant. I do not know the exact details on this, but I believe you only need to occupy the property for one year. You may be able to refi and or sell. Again I am not positive but it is an option you can do more research on.
You also have to consider the fact that you and your partner are across the country, and what will you need to set up to protect yourselves. Such as forming an LLC, and or an Umbrella policy etc... Well good luck I hope I was able to at least help a little.
The first order of business should be to assemble an investment plan. Why do you want to invest in real estate? Is because you want a continual stream of cash flow? Or are you looking for immediate short term gains?
Once you have thought about your why, you'll then have an idea of how to proceed. short term gains might come from a buy and flip or a fix and flip, cash flow might come from a creative financing distressed sale; or from an REO you buy and then rent:
@john k - i have heard of umbrella method and also setting up LLC this seems like a firm first step. Also hard money might work better for a quick gains like christopher posted below. have you used any hard money lenders yourself and without any track record or portfolio, where would you recommend i search for hard money beside googling hard money los angeles.
@ christopher - We are leaning towards cash flow or buy and hold. properties in NC are dirt cheap usually there are tons of rural areas, yet my hands on experience will need to be more in Cali as my partner can travel much easier to visit CA.
i will be looking into all mentioned and hope to have updates soon.
Why use google when you have BP? I am on my phone so i am unable to find the link, but there is a section here on BP which can provide you with hard money lenders specific to the area you plan to invest in.
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