Updated almost 6 years ago on . Most recent reply
My First Investment in a flip
A friend of mine is a general contractor, who decided to flip houses. I decided to become an investor to help with some of the rehab costs and he agreed to mentor me through the whole process. I put up 20k and will receive the principal and 5% interest once the house sells. (Yes - we have a contract.) The flip took about 2 months, so I didn't think $1k was a bad return in the short amount of time. The rehab is scheduled to be complete next week, but he already has 2 offers on the house. I'm confident that this will sell quickly. I'm still unsure how I would claim this interest next year on my taxes, but I'm curious to know your thoughts on our agreement? Once this sells, we would like to start another home. Thank you!!