Real Estate Investor · Menlo Park, CA · Member since 2012 · 9 posts · 0 votes
Hi all,
I'm a fairly new investor with one buy & hold property that I'm currently renting out in Portland, OR. I've been looking into buying another property and recently started looking at turnkey providers as an option. In the process of doing this I've become more familiar with what rehabbers are doing and wouldn't mind somehow participating in that investment strategy. I have limited time available for actively managing something like this, but I have plenty of capital to deploy. Do you have any recommendations as to how I can participate in rehabbing more as a passive investment (since I assume the opportunities will be outside of California)?
REI Pro · Boise, ID · Member since 2014 · 380 posts · 93 votes
11y
You could become a private lender or if you would like to be more involved you could joint venture with someone who could use your capital and work it out that way. In the past, I've done deals where one party brings the cash for the purchase and rehab, the other would bring the labor. You can do the profit splits anyway you like.
I know of a couple hard money lenders that sell their trust deeds - that's a pretty hands-off approach to generating some pretty good cashflow. DM me if interested and I'll give you some referrals
Private lending is about the most passive way you could be involved in flips, but if you are willing to be more involved do it as a joint venture sharing in the profits from the deal. The latter can bring greater returns, but may very well carry more risks to your capital. Either way make sure the numbers are there and that you have adequate collateral - usually a lien on the property.
Real Estate Agent · Madison, WI · Member since 2015 · 328 posts · 88 votes
11y
I'm amazed at the number of ways to make money in real estate. Any way will require at least some due diligence. Private lending and buy and hold are on the more passive end of the spectrum. You'd want a trusted property manager if you want to be more passive in a buy and hold.
Thanks for all of your responses, I really appreciate it! I'd be open to both private lending and joint ventures depending on the circumstance. Any recommendations in terms of becoming a private lender or finding rehab/flip opportunities where I can be the passive investor? I've seen a lot of recommendations to attend investment club meetings.
Investor · Mesa, AZ · Member since 2014 · 176 posts · 54 votes
11y
I don't think you'll have any problem finding people that want to either JV or people looking to barrow. I would definitely meet whoever you end up working with in person as it sounds like you're open to out of state opportunities too.
I'd be interested in discussing a JV relationship if you'd like. Send me a message if interested.