I need your help. Over the years, I've been involved in a wide variety of real estate projects - a BRRR, 2 flips, a vacation rental and a major renovation. I have decided that in addition to building a portfolio of vacation rentals, I'd like a more consistent exposure to flips in my market, Washington, DC. I work full time so I'm unwilling/unable to flip full time and intown D.C. SF flips require a $700k-$1M. I don't have the means to do that alone.
My question is how can I best identify local opportunities to make investments? I read that private placements don't allow a guaranteed rate of return so how do you know what the investment return will be? Is it possible to negotiate a percentage of the profit post sale?
And I'd prefer not to use crowd funding websites to make the investment because I'd want to be involved. I'm invested in a "friends and family" flip right now that has been fun! I've been responsible for all finishes and the property has turned out great.
Thanks in advance for your advice!
I recommend you go to some local REIA events and continue networking. There are multiple avenues of investing which all have their inherent risks and rewards.
Since your in DC - if you want to grab coffee and chat be happy too
It sounds like you want to be an active sponsor, as opposed to a passive investor. If that's the case, you could consider identifying a larger project, and then doing a JV or syndication to help you on your capital constraints.
@Quanda Allen You could consider becoming a private lender or do HML. There are many different ways to structure deals, and if you want to be actively involved you could make that part of the deal. I'm sure there are a lot of flippers that would let you be involved if you are willing to fund their deals. If you want to negotiate a percentage of the profit, you could structure a JV deal that stipulates those terms.