I work in repair and remodel construction so I am confident on the fix side of things. However I am looking to ask my co workers and others in my area or local REIA if they want to join a fix and flip project. I am unsure how the next few steps should play out. Do I just show a couple examples of local house flips, before, and after numbers; then collect there investment? Im thinking of asking for a 2k minimum investment, as well as helping do the remodel. People can invest more and receive more at payout if they want. Mainly curious if it is really just up to me to collect funds, type a sheet of investors and amounts invested, buy the deal with only my name on the contract, manage the process till house is then sold again, then cash out the investors? Most likely using a hard Money loan.
PS if anyone is interested, maybe we can chat at an upcoming REIA meeting in Sac.
Thanks for any advice
Unless it's just people you know pretty well (Family and friends) you'll probably have to be more legally structured. I'm sure there are laws you would have to follow before getting funds from people.
Have you done flips before? Do you find deals often? I personally wouldn't invest my money with someone unless they have an actual deal ready to go. Otherwise my cash could sit in someone's account for a long time doing nothing.
@Pratik P. Thanks for the input! I have not done a flip yet, kind of why I want to try a group flip where there would be lower risk per person involved; rather solely me. It would also be close friends/ family. I also feel that the investors, who also work in the construction field, will feel more comfortable investing in this type of investment since they work in that environment everyday and are knowledgable about what kind of job things require in a remodel as well as the work involved.
You'll have to bring one of 2 things to the table on a partnership 1. The deal 2. The funds. Since you're saying you don't have the funds, you have to find the deal.
If you find a deal, someone like me would be interested to partner with you and handle the funds part.