I am fairly new to the site and new to REI but want to get in the game with a flip. I have a few questions that have been rolling around in my head and I am hoping to get some feedback. Any help is much appreciated!
1. I work a full time job with a fairly demanding schedule. Typically 45-50+ hrs/wk without working on weekends. Is it reasonable to think that I could act as GC on a project of minimum scope (carpet, paint, minimal aesthetic upgrades, landscape etc...)? I get the feeling that its inevitable that I would be fielding phone calls and emails throughout the day and could hold up the project without prompt attention and response. Does anyone else have experience with this?
2. I have a potential investor that could fund the purchase price + repairs. However, in order to reduce the amount of the loan and hopefully max profits I am exploring alternative ways to finance repairs. I am expecting repairs to be in the 20-30k range. Anyone have ideas or should I just plan on using investor money for repairs, be happy with the profit I get, and learn for the next time?
First let me say congrats on this new journey and I hope it works out well for you. To answer your questions there are a couple things:
1. It is not so much that you would be a GC as you would be a PM (Project Manager). You normally hire a GC or a type of GC that will be working with a lot of the guys. With your full time job I do think that it is doable for you to PM well let me rephrase that I KNOW it is doable that is pretty much where all flippers start out at.
2. As far as the investor, couple thoughts: 1. It would be determined on the interest of this investor? Also in general I think on my first flip if I could use someone elses money it is a much better way than to risk all your money up front on your first deal. Unless it is family money :)
@Andrew Cordle . I guess PM is a more appropriate term, thanks for the encouragement.
Great point! It may make more sense to use investor money now and reinvest profits from project to project until I am at a point where I no longer need to finance repairs.
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