When capital partners ask how they can work with an operator, I usually walk them through two very different structures, because the right fit depends on whether they want equity upside or a defined lending role.

In a co-flip, the partner purchases the property through their own LLC and funds the project. The operator handles sourcing, underwriting, rehab, contractor management and resale. Documented capital is returned first, and remaining net profit splits 50/50. The partner owns the asset, sees the full underwriting before committing, and shares in the upside — and the risk if a deal underperforms.

In a lending structure, the partner is not an owner. On our Atlanta flips, private gap funding is typically $35,000-$45,000 per property, with a 6-month term, secured by a second-position lien. That capital covers the gap between senior financing and closing, including down payment and closing costs. Terms are written before funds move, and the return is defined up front rather than tied to the final profit.

Either way, returns are not guaranteed, and the paperwork matters more than the pitch. We are a proven and disciplined operator with 75 flips, and we show the numbers either way before a dollar moves.

— Raul, Anchor Point Development