My girlfriend and I want to begin investing in real estate. She just recently became a real-estate agent full time and I have a full time salary job as well. We have become interested in investing in real estate and want to start somewhere between live-in flips and fliping single home rentals. The problem is that we don't have any large funds saved up to begin investing and we are both rebuilding our credit at the moment. We have recently entertained the idea of bringing in an investor to help jumpstart our goals. The question is... how could we profit and the investor profit after the property has been renovated and starts being rented? We understand better how everyone would profit in a situation where the property is sold after being completed, because everyone would just get their cuts after the closing. But in the occurrence where the property is intended to be rented instead of being sold, how would everyone make a profit? Is it even possible to accomplish this? If so what are some possibilities?
I hope I have given enough information as to our questions so that they are understood.
Probably the best person to finance your live in flip would be the bank.... just cleaner than bringing in another person.
Sometimes you can find seller finance deals, but it may be because the property is not bank finance-able (with issues).
There are some sources for funds for flips but you may want to get more proven in that space before going there. It can be competitive and risky.
If you are looking to get into real estate investing in general, you may want to look at solidifying your financial foundation, and one of the most popular personalities on the planet for that purpose is in your state: Dave Ramsey.
In the end, all energy and time you put into trying to draw up some partnership terms, find a partner, work with them, etc. might be better spent simply getting yourselves into a position to buy and have the means to access credit to execute your strategy. You may find you are closer than you think to getting your first live in flip. Then you both will be the team and fully empowered and in control.
Best of luck.
You could use private money to make the purchase and repairs and then refi out into a mortgage. You will need to find a bank/credit union that will approve you in your current financial position. The private money person is gonna want to feel confident you can get that mortgage. They may be interested in longer term financing, but not as common to find one.
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