Hi BP Community!
I'm working to put together my first flip deal in Jacksonville, Florida (Riverside).
I'll be doing this from abroad .. way abroad ^^ (Here's more about my adventures posted on BiggerPockets, including getting both Brandon Turner and Joshua Dorkin to make a virtual appearance at our last meetups!)
Anyways, I've read over this article by @Michael Blank on 'syndicating flips.'
It seems to me to be a very professional way to do it. In a nutshell:
1. You get investors to agree to help finance the flip.
2. Title company issues promissory notes collateralized against the property you intend to flip for the investors.
3. Investors send money directly to the title company.
4. After the sale of the property, the Title company issues 'payout' statements to the investor and sends payment to the investors
I think investors will like it because the 'flipper' won't handle any of the money directly and the investor's money is collateralized against the property.
So my questions are:
1. Has anyone investor in Jacksonville, Florida handled a flip this way before?
2. Does anyone have any advice on how to find a title company that can do this?
3. I've heard that the title company is chosen by the seller of a property, not the purchaser. If that's the case, then when you buy the house to flip, if the title company the seller chooses doesn't offer this service, is there nothing you can do?
Anyways, if anyone has any insight into - using a title company to issue promissory notes or working with investors on a flip - I'd love to hear it.
Thanks as always, BP Community!
Hey @Daniel Ryu
My first flip was in Riverside while I was living in the San Francisco Bay Area. More than half of the project I managed remotely. I have since moved to JAX and am about to start on another Riverside rehab. Send me a message and we can discuss in detail.
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