Investor · Teaneck · Member since 2022 · 49 posts · 29 votes
Hello everybody, I am curious to find out what and why do you belive is a better. Partnering in a deal or just funding a flip? Thank you in advance for your input.
Realtor · NJ · Member since 2020 · 277 posts · 138 votes
3y
Hey @Sergio A. Chucaralao, that question really depends on the specific investor and their risk tolerance. Being a partner in a deal is obviously more active and hands-on, and you have more control over the day-to-day. If you're more experienced and have the capital and would like to be hands-off, funding a flip could be a different option to earn "passive" income--although the risk is much higher for you as you're placing your confidence in the investors and the deal you chose to fund. For this reason, you'd want to be pretty confident in your ability to vet and underwrite deals thoroughly before lending your capital.
Investor · Teaneck · Member since 2022 · 49 posts · 29 votes
3y
Thank you, it definitely makes sense. Ideally a partnership with a person that already has a property but doesn't have funds for the renovation would be great. I have done couple of BRRRs in my area but with this new rates is very difficult to do full gutts.