Recommendations for RE Development Funding

Recommendations for RE Development Funding

Flipper/Rehabber · Los Angeles, CA · Member since 2011 · 20 posts · 2 votes
Can anyone in the BP community recommend a starting point for someone like myself (newbie with limited funds but with access to unlimited properties). My goals are to partner with a Rehabber / Developer and redevelop multiple properties in some of Chicago's under served neighborhoods. Any information would be appreciated. Thanks - Canontone
0Reply
4 views

Most Popular Reply

J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
12y

If you truly have "unlimited properties," I would recommend wholesaling a couple hundred of them, at which point you'll have a million dollars or so to start doing your own deals...

Okay, that was a bit sarcastic...sorry...but my point is that it's very unlikely that you have unlimited properties that are great deals (if you do, then my I'm completely serious about what I said above). Otherwise, my recommendation is to really start digging in to what makes a property a great deal (learn how to analyze rehab costs, ARV, neighborhood desirability, etc) and when you start finding some good deals, find a local investor you can partner with on them.

Many investors don't have enough deals in the pipeline, so if you can fill that void, you are likely to be considered a valuable asset to investors and they'll be happy to partner with you (or buy the deals from you). Before you know it, you'll have cash of your own.

See this reply in the discussion

5 Replies

Jump to latestLatest
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    12y

    If you truly have "unlimited properties," I would recommend wholesaling a couple hundred of them, at which point you'll have a million dollars or so to start doing your own deals...

    Okay, that was a bit sarcastic...sorry...but my point is that it's very unlikely that you have unlimited properties that are great deals (if you do, then my I'm completely serious about what I said above). Otherwise, my recommendation is to really start digging in to what makes a property a great deal (learn how to analyze rehab costs, ARV, neighborhood desirability, etc) and when you start finding some good deals, find a local investor you can partner with on them.

    Many investors don't have enough deals in the pipeline, so if you can fill that void, you are likely to be considered a valuable asset to investors and they'll be happy to partner with you (or buy the deals from you). Before you know it, you'll have cash of your own.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    Canontone

    Welcome. Time to build the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 60 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    Couple good reads

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    12y

    What do you have to offer in a partnership? If you don't have cash or experience I think your options are probably limited for funding. For smaller projects you may make a good credit partner, but most reputable developers will probably already have this box checked and thus I am not sure how you'll provide value. If you can find good deals you can be the agent in the transaction. If you can write good contracts (which is very different from finding good projects) you may be able to sell them to a developer. Good development contracts design out municipality risk and have extended closings so you may be waiting a while for a commission or a sale of a contract.

  • Flipper/Rehabber · Los Angeles, CA · Member since 2011 · 20 posts · 2 votes
    12y
    Thank you. I appreciate the advice from all of you. You all have made some very good and humbling points. I will take them all into consideration.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.