I need some direction. For a few years now I have been researching topics related to REI strategies and have decided it is time to put things into motion. I worked as a RE rental agent in NYC for almost three years, straight out of high school- while attending college part-time. Although it was an amazing and lucrative experience I decided I wanted to put my focus back into my studies and building my own portfolio. I also help run my family business that specializes in home improvement contracting, interior design, and antique restoration. It is a small family business started by my mom, but with over 20 years of experience and enough connections and resources to significantly reduce renovation costs of any project I decide to take on. My mom is getting older and as I get more involved I find that we're spread thin among kitchens, bathrooms, etc. in ten different projects, so why are we dealing with ten different clients, ten different rooms, and ten different problems throughout northern NJ? We have everything we need to do a quick and efficient flip, so why not concentrate our efforts on ONE location with various projects all within a single property? So this is my issue; I have knowledge on reno costs, employees, tools, and discounted prices on almost anything that we would need relating to a home renovation- as well as some basic knowledge acquired throughout my years of working as a RE agent and endless hours of research. BUT. When it comes to specifics about THE BEST strategies with respect to funding, property acquisition, and the transactional process I am a novice.
I've been able to get together some money- possibly enough for a down payment or enough to show some proof of funds if I decide to go the hard money lender route, but I was just put on payroll for my company and I have fairly new credit, so a traditional loan doesn't seem to be an option for the near future.
Common sense leads me to believe I am in serious need of a partner. Someone with some experience with fix & flips and with some cash to contribute to a deal.
My first question now is whether my situation would be attractive to any mildly experienced investors considering I have labor, accessibility to wholesale prices and some upfront cash to contribute. I know JVs are common, but is looking for someone who will hold my hand through the transactional processes while I learn it first hand asking for too much?
My second question is how I would go about negotiating terms with a potential partner. Is labor knowledge valued more or less than transactional knowledge- I'm sure you've all heard the saying " you make your money when you buy." ?
This is one of my first steps in doing my first fix & flip, so any information, tips, or even just support would be very useful!
I'm in Bergen County, NJ in case anyone would like to offer geographically specific info. That would also be massively appreciated! I would be happy to chat or meet with anyone individually if there's interest in discussing the subject!
Bigger Pockets has been a wealth of knowledge for me and a lot of other beginners, so I want to thank you all ahead of time for anything you've contributed or will contribute!
It sounds like you are a good fit for someone looking to be solely a financial partner. Do you have any friends/family that would be interested in this type of arrangement? I started in the business with my father and father in law and since then have broken free on my own, and my father is actually on his own doing a "house Hack" type deal with my sister and her fiancé, and has interest in doing a few flips a year after he retires from his day job (in a couple years).
You can also see about investor meet ups in your area. I have one local to me, however the past two events I have missed, but plan on getting to the next one.
@Danilo Lavia I think you bring a good amount to the table. In addition to this however, you have to be a hard worker and willing to put in the time. The only way that anyone will want to truly partner (not just take your money and give you a set return), is if you show initiative to drive a business. I recommend:
1. get biz cards
2. go to REIAs and BP meetups and meetups from Meetup.com meet as many flippers/investors as possible
3. ask to visit their properties
4. if you find someone you feel that you click with and they have complimentary skills, stay in touch, show them some deals you are looking at, and grow the relationship.
I am sure if you put the work in and get out there, you'll have a partner within 6 months. Keep me posted.
@Danilo Lavia there are three things that most deals need. 1) time, 2) expertise, 3) money. If you can have two of the three, then it would not be difficult to find a partner.
I'm an investor/cash buyer in Bergen County always available to help with any question.
I just PM you.
Thank you all for your replies!
@Brian Pulaski I am trying to get my family business involved in the renovation part of a flip, but as far as funding is concerned I would be using some money I've been able to get together- my own and from other family members. It, however, wouldn't be enough to do a proper deal without some additional funding. I've attended some of the NJREIA meetings in northern NJ and have learned a good amount. I will absolutely continue attending to do some more networking. It's great to hear your family has been able to work together and do good business! House hacking is a wonderful option and I hope to soon do a similar deal myself. First, though, I'd like to complete my first successful flip.
@Shawn Ward Thanks a lot Shawn for the advice! I have been able to do a wonderful rebranding of my family business with the help of my girlfriend who is an amazing designer- including website, cards, instagram, and other marketing material, as well as prepare marketing material for the investment side of my business. I'm actively networking around my area to make sure I meet as many local investors as possible. I'm excited to me meet with some potential partners soon and will be sure to keep you and all of BP updated.
@Johnathan Boyle Totally agree, hopefully my renovation knowledge, time commitment and bit of money will get me closer to a solid partner to start on a few flips.
@Yosy (Jay) Kaidar Looking forward to meeting!
and in case any of you would like to check out my sites:
Daninthehouse.com (under development)
Thanks again everyone!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing