Investment Opportunity in Property Flip
Member since 2022 · 13 posts · 3 votes
Investment Opportunity in Property Flip
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Julie MuseBusiness Member
Flipper/Rehabber · North Georgia · Member since 2024 · 319 posts · 92 votesNot to be ugly at all... I wouldn't start my first flip with this much rehab. That's a big project for anyone to take on. There are so many things that could and will go wrong. Start with a 40k or cosmetic rehab to start and grow from there. A project like this can put someone under really quick
Partner Driven4.7122 Reviews
12 Replies
- Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes2y
Quote from @Dijana Tadic:
As a novice in the real estate investment field, I am embarking on my first property flip project. I have identified a promising property that has great potential for a successful flip. After thorough research and initial assessments, I estimate the rehabilitation costs to be approximately $250,000.
The property in question has been carefully evaluated for its potential return on investment, and I believe it presents a unique opportunity for profit. I am committed to managing the project diligently, ensuring that every aspect of the rehabilitation process is executed with precision and efficiency.
I am open to discussing various investment structures and terms that would be mutually beneficial.
Additionally, if anyone can share any lenders who specialize in financing first-time flippers, I would greatly appreciate any connections or recommendations.
Thank you for considering this opportunity.
250k rehab for a new investor is quite a large undertaking. If you move forward on this, make sure you have layers upon layers of checks and balances here.
- 2yPeter MckernanBusiness MemberResidential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votesThis one you are looking for a money partner for just the rehab costs or the whole property and rehab costs? How did you evaluate the returns (ARV) of an agent pulling comps or through your online resources? The best is with comps from a realtor/agent that has access to the MLS.
Quote from @Dijana Tadic:
As a novice in the real estate investment field, I am embarking on my first property flip project. I have identified a promising property that has great potential for a successful flip. After thorough research and initial assessments, I estimate the rehabilitation costs to be approximately $250,000.
The property in question has been carefully evaluated for its potential return on investment, and I believe it presents a unique opportunity for profit. I am committed to managing the project diligently, ensuring that every aspect of the rehabilitation process is executed with precision and efficiency.
I am open to discussing various investment structures and terms that would be mutually beneficial.
Additionally, if anyone can share any lenders who specialize in financing first-time flippers, I would greatly appreciate any connections or recommendations.
Thank you for considering this opportunity.
Making sure that the partner has the capital and has the money to do the deal is one thing, but lining out the agreement is another. Finding a true deal is one of the hard parts of real estate investing and flipping.
There are investors that do the full thing, but may take a lot of money due to a newer investor bring them a deal (the split may be bigger than what you think is okay for asking). You need to vet them for what they are bringing to the table (cash/project management experience/contractors/etc.)
A good hard money company that can work with investors on the loan and/or construction costs. Easystreet Cap is a good one that you can check out.
The McKernan Group4.954 Reviews - 2yJose JacobPro MemberInvestor · 11040 · Member since 2019 · 186 posts · 111 votes
$250K Reno cost seems very high unless it is a big house over 3000 sq ft. As new investor, I wont suggest you to take that big burden. If I were you, I will buy a house with cosmetic work and learn the business first. Its not that easy to do a fix&flip. Lot of things can go wrong. If you have an experienced investor with you as a partner, you are good. Otherwise, think twice before you jump in. Good Luck
- 12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes2y
We specialize in first time investors and are a direct lender ! 30% down on the purchase providing 100% of construction . Would love to connect and discuss
- 2yJulie MuseBusiness MemberFlipper/Rehabber · North Georgia · Member since 2024 · 319 posts · 92 votes
Not to be ugly at all... I wouldn't start my first flip with this much rehab. That's a big project for anyone to take on. There are so many things that could and will go wrong. Start with a 40k or cosmetic rehab to start and grow from there. A project like this can put someone under really quick
Partner Driven4.7122 Reviews - Member since 2022 · 13 posts · 3 votes2y
Quote from @Jose Jacob:
$250K Reno cost seems very high unless it is a big house over 3000 sq ft. As new investor, I wont suggest you to take that big burden. If I were you, I will buy a house with cosmetic work and learn the business first. Its not that easy to do a fix&flip. Lot of things can go wrong. If you have an experienced investor with you as a partner, you are good. Otherwise, think twice before you jump in. Good Luck
Thank you for your advice. I understand that California isn't an average state in terms of real estate and rental markets. The housing market here tends to be significantly more expensive compared to other regions, and this definitely impacts renovation costs as well.
Given that the home I am considering is around 3000 sq ft, the $250,000 renovation budget might seem more reasonable, especially in CA. Larger homes typically require more extensive and costly updates.
I truly appreciate your concern and the advice to start with a property requiring cosmetic work. I am open to all opportunities and will carefully weigh the pros and cons before making a final decision. Your insights have certainly given me more to consider, and I’ll proceed with caution and thorough planning. - Member since 2022 · 13 posts · 3 votes2y
- Member since 2022 · 13 posts · 3 votes2y
Quote from @Jason Taken:
Quote from @Dijana Tadic:
As a novice in the real estate investment field, I am embarking on my first property flip project. I have identified a promising property that has great potential for a successful flip. After thorough research and initial assessments, I estimate the rehabilitation costs to be approximately $250,000.
The property in question has been carefully evaluated for its potential return on investment, and I believe it presents a unique opportunity for profit. I am committed to managing the project diligently, ensuring that every aspect of the rehabilitation process is executed with precision and efficiency.
I am open to discussing various investment structures and terms that would be mutually beneficial.
Additionally, if anyone can share any lenders who specialize in financing first-time flippers, I would greatly appreciate any connections or recommendations.
Thank you for considering this opportunity.
250k rehab for a new investor is quite a large undertaking. If you move forward on this, make sure you have layers upon layers of checks and balances here.
I appreciate your concern and advice, and I'm keen to proceed with caution and thorough planning. I believe that with the right support and collaboration, I can navigate this project successfully and build a solid foundation for future investments. - Member since 2022 · 13 posts · 3 votes2y
Quote from @Jacob Sherman:
We specialize in first time investors and are a direct lender ! 30% down on the purchase providing 100% of construction . Would love to connect and discuss
Thank you for the detailed information about your program. I appreciate the opportunity to connect and discuss how we can work together. Your program, offering 30% down on the purchase and 100% of the construction costs, sounds like a solid option for many investors. However, I'm also interested in exploring other options that might require less down payment or offer additional support for novice investors. I am happy to discuss.
- Member since 2022 · 13 posts · 3 votes2y
Quote from @Peter Mckernan:
This one you are looking for a money partner for just the rehab costs or the whole property and rehab costs? How did you evaluate the returns (ARV) of an agent pulling comps or through your online resources? The best is with comps from a realtor/agent that has access to the MLS.Quote from @Dijana Tadic:
As a novice in the real estate investment field, I am embarking on my first property flip project. I have identified a promising property that has great potential for a successful flip. After thorough research and initial assessments, I estimate the rehabilitation costs to be approximately $250,000.
The property in question has been carefully evaluated for its potential return on investment, and I believe it presents a unique opportunity for profit. I am committed to managing the project diligently, ensuring that every aspect of the rehabilitation process is executed with precision and efficiency.
I am open to discussing various investment structures and terms that would be mutually beneficial.
Additionally, if anyone can share any lenders who specialize in financing first-time flippers, I would greatly appreciate any connections or recommendations.
Thank you for considering this opportunity.
Making sure that the partner has the capital and has the money to do the deal is one thing, but lining out the agreement is another. Finding a true deal is one of the hard parts of real estate investing and flipping.
There are investors that do the full thing, but may take a lot of money due to a newer investor bring them a deal (the split may be bigger than what you think is okay for asking). You need to vet them for what they are bringing to the table (cash/project management experience/contractors/etc.)
A good hard money company that can work with investors on the loan and/or construction costs. Easystreet Cap is a good one that you can check out.
Thank you for your valuable input and recommendations. I appreciate your insights on evaluating returns and the importance of having a solid agreement with a potential partner.Currently, I am looking for a money partner for both the purchase and the rehab costs. However, I am open to discussing various partnership structures that might make the project more feasible. To evaluate the ARV, I've used a combination of online resources and comps pulled by a real estate agent with access to the MLS. I agree that having comps from a realtor/agent with MLS access provides the most accurate and reliable data.
I understand the importance of vetting potential partners for their capital, project management experience, and access to reliable contractors. Could you share any best practices or key criteria for evaluating potential partners in real estate projects?
- Member since 2024 · 1k+ posts · 351 votes2y
Maybe see if you can partner with someone and take a small share of the profit to get your feet wet
- 2yChristian HwangPro MemberMember since 2023 · 30 posts · 17 votes
Hey Dijana. Is this project still available? I would like to discuss how my team would be able to provide funding on the rehab and get you the cash to close the deal. Please dm me!
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