Credentials: I have 1 buy and hold that I purchased in 2007.. pretty bad time to buy.. ha. I'm looking in to buy and holds, but I'd definitely do a fix and flip if it came my way. The problem is that one may be coming my way and I don't have the experience right now.
So today, I was walking down the street today and I saw a distressed home (which I noticed before). It's in a great neighborhood, but the home is 3300 sqft and needs a lot of work, almost a full gut.
I saw a guy go inside as I was walking down the street.. apparently he was helping clean it out. 1st person I've seen at the home in all the times I've passed it. I went up to the door and knocked. He came out after about 7 minutes and I explained I'm a real estate investor. He knows the owner personally and advised him to just get rid of the place b/c it needs so much work.. but the owner just inherited the home from his dad, who passed and was thinking about fixing it and living in it.
I talked to the guy for about 5 minutes and explained that we could do a quick sale and I can pay cash. I gave him 1 of my business cards (that I just got.. ha).
If this guy calls me.. what should I do? lol.. I was thinking about just bringing it to one of the guys at the local wholesale club b/c they have buyers.. I could also get a hard money loan and rehab it myself (right?), but this would be my first fix and flip.
Anyway, this definitely has potential if the guy calls me.. and the guy I talked to said he would go to bat for me.. Any advice? Thanks!
If the numbers work and you have the money I would say take the risk and do it yourself. Another good option is find someone who has a lot of experience and have them help you with the project and split the profits with them. That may be the best route as you would be able to make money still and gain the valuable experience.
@Casey Cuppy thanks for the info.. great suggestion.. I think I'll do that. I know 2 or 3 people I could ask to go in on it with me and I'd def learn a lot.
Also, I'm not really sure how to secure the deal if he calls me. Maybe I should bring in a wholesaler to help me on that one too and just set up a meeting.. Give them a cut, etc. Or maybe just set up the meeting and have one of the investors help, but just b/c they're investors doesn't mean they know what to say as a wholesaler, right?
I would have one of the other investors come along with you. You will just need to get some kind of contract in writing with them spelling out the specifics of the deal (cash or hard money, when it will close, etc. etc.) I would close the deal through an escrow company to help with title issues and handling of the money.
@Casey Cuppy Awesome thanks for the info Casey.. I appreciate it.
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