Fix & flip in Bakersfield, CA partnership?

Question

I made the mistake of partnering with someone who bailed on me last minute for a fix and flip single family home in Bakersfield, CA. I'm bummed. The progress I've already made: I've connected with the owner (whom is also the realtor). As well, I've had a contractor assess the property. I haven't put in an offer yet, nor have funding yet.

I am quite motivated and enthusiastic about this flip, but I am a newbie as this will be my first project. Because of this I would like to partner with someone more experienced for this first venture.

So far what I have to bring: *The property (up for bid). *I live 80 miles from Bakersfield so I can be the eyes on the project. *I'm partnered with a desirable and reputable 40-year experienced contractor in the area with whom I'm in regular contact.

ARV: $200,000

Listed: $185,000

Repairs needed: $20,000

Average CPM: $ 220,000

Obviously I think that listed price is too high. I hope I explained all of the details right! Looking to put in an offer today, or soon. Sadly I wish I had more time but due to the circumstances I'm left to find someone to partner with quick.

Account Closed · Answer

@Jeffrey Donis Yes.. Totally agree. However I’ve been a little frustrated with most all meetings near me still Zoom. I don’t know about everyone else, but networking is not the same over video call! Nothing beats in-person.

I did find an in-person in Bakersfield though, which I’ll probably travel to attend! Crossing my fingers for the return of real life meetings!

Account Closed · Answer

@Patrick Knapp Yeah for sure! I had to sleep on it a bit but I agree.

Jeffrey Donis · Answer

Account Closed I'd encourage you to look for a meet up in your area and attend it ASAP. Investors are always willing to help others out, and if you go in person, you could ask around and see if anyone is willing to help who's local.

Good luck!

Account Closed · Answer

@Max Gradowitz I think that’s fantastic advice. Thanks Max!

Account Closed · Answer

@Jeff Cagle Much appreciated. Thanks Jeff! 🙏🏻

Account Closed · Answer

@Jo-Ann Lapin It is right! That’s what I thought. I take it as a good sign it wasn’t working out. It had a LOT of damage and rehab costs.

From my research, NW Bakersfield has more buyers than property to fulfill. I’m sure all of Bako is that way right now. That makes sense why the prices are going up. Demand is high

Account Closed · Answer

@Gene Hacker

Hi Gene. What I’m looking for is an experienced (fix and flip) investor who would join the project in which I can learn a little from, as we go through the process. I know a little, but would like someone that I can learn from further!

However, I think it may be too late for this one. The seller was rather eager. He listed it just a few days ago, and has had an offer already. If we linked up I’d reach out and see if it wasn’t too late.

I’m not sure if he marketed it, I heard about it through a friend and contacted him directly.

Please, message me so we can discuss further? Thanks again for your response, Gene!

Jeff C. · Answer

There was no juice in the deal at list price, and if the property did have a "lot of damage" your $20k rehab number is probably woefully low. You'll be amazed at how quickly you blow through tens of thousands of dollars when you start digging into a place.

Max Gradowitz · Answer

Having a solid partnership agreement is highly recommended, if you don't already have one. It could save you from costly litigation if one partner wants to sue the other. Good luck with your investment plan!

Jo-Ann Lapin · Answer

The list price sounds really high . Bakersfield has had a huge spike in price in the last yeAr but generally is a slower moving market . Just FYI