Its an exciting time in my real estate investing journey! I've been talking with someone who I have a great business relationship with, and this past week, they agreed to partner up and fund some flips! I'm pumped!!
I've done a couple deals on my own, and even borrowed money from this same person (paid in full), and everything has worked out very well for me this far, but now I'm nervous!?
I sure wasn't expecting that... I thought I'd get funding and charge bravely forward, but now something is different with someone else's money is on the line.
Anybody else experience this?
@Cameron Price why are you nervous now? If you were borrowing money from the same person or entity (lender) you were putting their money at risk then so what is the nervousness now for?
Why are you partnering? You should keep the same system, you the borrower and they the lender. It worked before so why not keep that same system in place?
Now, all that fun said, real estate investing isn't always fun and profitable. Sometimes you lose money and your flip houses flop. I am not trying to be a downer, I am being realistic.
When you use OPM (other people's money) someone else's money is always on the line, but so is yours --- your profit. Keep that in mind. You're not doing this for practice.
I like having specific roles, borrower, lender, etc. in my own business. . . I've done it a lot of different ways too.
Good luck! And by the way this is a good problem to have, in my opinion....
Definately a good problem :)
I'm not sure why I'm nervous now. Maybe because there's more on the line than a couple hundred dollars a month. I borrowed before to buy a rental and made monthly payments. I had a couple months with no renters and had to pay out of my pocket... no problem.
I guess it's higher risk in my mind to flip with his money. I cant take 50K or 100K out of my bank account to cover the bad times like I could with a lost month of rent. Its more succeed or fail with a flip than it is with a rental..... Guess I just answered my own question. lol.
I feel confident in my ability, but I'm being way more careful about which property to purchase as a first deal together. I want to make absolutely sure the first one we do is a success.
its ok to be nervous. You'll pay closer attention to make sure you get it right. Proceed with cautious intent.
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