Investing in a flip (what to look for)
Hey BPers,
I'm being presented an opportunity to invest in a flip project (purely as an investor). This is the first time Im considering going into a deal just purely as a monetary backer. What are some things I should look for/ask or be mindful of? The person coming to me with the deal is a friend and he's the contractor doing the work on the Fixer, so there is a level of trust there, but since its the first time we're doing this type of deal together I want to know how to approach it.
Whats being requested is 15k commitment (may be less) with a 35% return of investment when the property is sold. We're going to look at the property tomorrow. Any help from those who've invested in flips in the past would be helpful.
Thank you!