Advice Needed: 20-Year-Old Investor Planning First Flip with a Silent Partner

[Garry Lawrence]

Hi Everyone,

My name is Garry, I’m 20 years old and based in Baltimore, MD. Almost a year ago, I bought my first property, which is currently a long-term rental. It’s been a great learning experience managing it, and now I’m preparing to do my first flip, God willing, within the next 3–4 months.

I have a close friend who’s also an investor in my e-commerce business, and he’s expressed multiple times that he wants to invest in my next real estate project. He’s willing to invest $35,000 and possibly more as a silent investor, while I’ll handle everything from acquisition to renovation and resale. In return, I’d give him a percentage of the profit once the flip sells.

Since this would be my first flip, I want to make sure I structure everything properly and minimize risk for both of us. I currently have around $5,000 in savings and about $16,000 in stocks (which I’d rather not touch unless absolutely necessary). I also have an LLC for my real estate business and am wondering if I should buy the flip under my name or through the LLC. I'm young and still new to this so I really appreciate any advice, especially since I've never done a flip before.

What I’m Looking for Advice On:

1. Partnership & Profit Split:
   What percentage of profit would be fair to give my silent investor for putting up $35k? Should I structure him as a lender with a fixed return or as a partner sharing in profits?

2. Funding & Structure:
   What’s the best way to secure additional funding beyond my partner’s $35k, like hard money, or private money? and should I use his funds primarily as a down payment or for rehab capital?

3. Finding & Analyzing the Right Property:
   What type of property should I be looking for around Baltimore, or where are good places to find flip opportunities that make sense for a beginner? (I'm open to buying outside of Baltimore)

4. Executing the Flip Successfully:
   What’s the best way to go about completing a flip,  especially for someone doing their first one? Do you think it's smarter for me to hire a general contractor or manage subcontractors directly?

5. Contractors & Renovations:
   How do you find reliable contractors who don’t overcharge new investors, and what are some common rookie mistakes to avoid during the rehab process?

6. Ownership, Risk & Protection:
   Since I already have an LLC, should I buy the property under my name or through my LLC? What are the key things I should make sure of or consider before doing this flip to protect both myself and my investor?

7. Scaling & Long-Term Growth:
   What advice would you give a young investor trying to scale responsibly, including systems, habits, or routines that helped you grow early on?

I’d truly appreciate any feedback, insight, or personal experience you’re willing to share. Thank you to everyone who takes the time to read and respond, your advice means a lot! God bless

– Garry L.

[Jordan Outen]

Look and see if there are grants in your area. Most places will lend you money to help with renovations since you are helping preserve property values