Updated 7 months ago on . Most recent reply
Crowd funding for flipping
Hi guys,
I'm wondering if any people out there using crowd funding instead of using hard money lending for house flipping, by saying crowd funding, I mean several investors pitch in to buy a property and renovate it, and share the profit after it gets sold? I'm in the Bay Area, houses here cost millions of dollars, so the bar for fix and flip here is quite high. You can't fix and flip a property by yourself even with 200k - 300k in cash in hand, but if a couple of like-minded people come together and pitch in, it's doable. However, it seems not a lot of people out there are doing so. The reason I ask is that I've been investing with a few private money lenders and receives 10% in interest, but if I can invest that money into a fix and flip project, the gain will be higher.
Most Popular Reply
california i think you can do it up to ten people, in other states you need to file for an SEC exemption and that will cost you $10-$25k. Also just remember if you have more people involved that is more people who may have some sort of control and more mouths to feed. If you are raising less than $3M, I would not recommend crowdfunding or an SEC exemption
Lastly have you ever done a fix and flip project?
- Chris Seveney
