First fix & flip from an auction

[DeQuantay McDowell]

Hello BP community, 

I'll be attending my first auction with goal of acquiring a property best for a profitable fix & flip and I'm working to better understand how to identify properties that have strong potential for renovation and resale. I've been analyzing local comps, rehab scopes, and exit strategies to make sure I'm targeting properties with strong potential and with manageable risk. 

In between time I've been learning how joint venture partnerships are structured where one partner brings in capital or experience, and the other handles project management and execution. Insight from anyone who has successfully combined resources this way would be extremely helpful.

Also, for those who have experience purchasing at auction or working with distressed properties, I would appreciate hearing how you 1) evaluate properties with limited access or inspection opportunities 2) manage risk related to liens or title 3) structure partnerships or collaborations for these types of deals. 

- Thank you!

[Andy Sabisch]

Quote from @DeQuantay McDowell:

@Jeff Green Thanks, have you found it difficult to getting a JV partner for the capital side?

In order to get a JV partner for a deal that brings capital, you need to be bringing the other side of the equation which is experience and project management skill. Without that, the partner will be left trying to balance both sides. Before looking for a JV partner, you need to gather either capital or experience as without either, there is nothing that would attract a partner.