Should I Partner with an investor or wholesaler

Should I Partner with an investor or wholesaler

Investor · Honolulu · Member since 2017 · 20 posts · 5 votes

I purchased a home in the Los Angeles area of Lake Balboa, which I planed to do a “live-in flip”. I’m in the military so I knew I would be moving in a few years after buying. I’ve done a few projects (nothing major). I purchased the home for $465,000. Houses in the surrounding area sell between $600,000-$800,000. Now that it’s getting close to the time for me to leave, I’m rethinking my strategy. Lately I’ve been entertaining the idea of partnering with someone who has experience flipping houses.

Since I already own the home I figure we could split the profit from the sell or from the refinance. Any suggestions?

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Investor · Ocala, FL · Member since 2018 · 144 posts · 101 votes
7y

Why would you partner with someone now that most of the work is done? Finding a place and buying it are two of the hardest steps, which you've already done. It seems like you would be unnecessarily reducing your profit. If you are getting ready to list and sell, you need a real estate broker that knows the market and can advise you on the expectations for condition and finish level in your area, not a partner. A good broker likely has contractors as well if that's necessary. 

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  • Investor · Ocala, FL · Member since 2018 · 144 posts · 101 votes
    7y

    Why would you partner with someone now that most of the work is done? Finding a place and buying it are two of the hardest steps, which you've already done. It seems like you would be unnecessarily reducing your profit. If you are getting ready to list and sell, you need a real estate broker that knows the market and can advise you on the expectations for condition and finish level in your area, not a partner. A good broker likely has contractors as well if that's necessary. 

  • Whitney HuttenPro Member
    Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    JD has a great point. Why are you wanting to partner with someone? Do you have the capital to fix the property up to resale? Could you get a HELOC to push the equity?

    A wholesaler will want the property as under valued as possible so they can flip it to another person/investor.  

    If you have the means, find a great realtor who will guide you on finishes and help you find a great contractor to complete the work!

  • Investor · Honolulu · Member since 2017 · 20 posts · 5 votes
    7y

    @JD Gunter @Whitney Hutten I planned on doing most of the work myself but now I’m thinking that if I just partner with someone who knows how to do the work it would be easier.

  • Investor · Ocala, FL · Member since 2018 · 144 posts · 101 votes
    7y

    I'm still not sure why you would partner. Find a good contractor and pay a fair rate. Equity in your deal is too valuable to hand over for labor.

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