Pittsburgh, PA · Member since 2015 · 84 posts · 11 votes
Hello Pittsburgh family!
I just earned my real Estate license months ago and I'm eager to get out and make something happen. I think I have crammed every motivational book, Flip books, and investments book that I could possibly go through. Of course I will continue to self study always.
What I'm looking for is a long term investment partner to provide funding for the cost of flipping/rehabbing the home. My ideal flip is to provide quality results not your regular quick flip, lay down carpet, patch holes and paint walls. I want to build a brand that shines.
Please, if you out there shoot me any questions or concerns. If you want to go for lunch so we can connect I'm fine with that also.
i agree , I know it's scary but having a partner , even a financial one is difficult task that I happen to be doing .. I was very lucky in finding mine. He happends to be completely oppisite of me but that is good .. But challenging . He ix the nicest guy and I would never want to disappoint him . He does provide all the money needed to go from start to finish .. And we are hoping to start our first one at the end of the month .. After 3 months of searching . If I had prequalified for hard money I would have jumped on a hoyse that I saw potential in and my investor didn't . The person who bought it flipped it in 6weeks and made 90 k on it .. And still left money on the table ..has he done a better job rehabbing it he could have made around 120k .. He didn't even change the old blue toilets ans tubs.. Or put in a oven .. He bought it for 50 put In carpet and some builders grade light fixtures and sold it for 149k .. But that's what you deal with when your not making all the decisions .. Good luck and God Speed ,
@Charles Coaston In my opinion, you need to bring cash or credit to the table. My first few deals, my investing partner put up the downpayment and I got the loan in my name, so we both had something at stake. Split the profits 50/50.
Being a realtor helps some, but there are lot of realtors out there, and they're already getting paid the commission for selling the property to me. I wouldn't see a reason for any further split of the profits unless they had cash or credit into the deal.
@Jordan Abromovitzis correct that hard money is cheaper than a partner, but the risk is also not split like it would be in a partnership...which is part of the benefit.
This is why I would second @Tom S., bring cash, credit, or knowledge to the table. If you have those work on how you "pitch" that to a partner. I don't necessarily mean a bogus elevator pitch, I just mean why that makes you marketable as a partner. Also, if you are an agent and you are buying the property with the partner and then selling it (for no commission) that means that you are bringing 3% cash on purchase and 6% cash on sale. So on a 20,000 purchase and 100,000 sale you are bringing Appx $6500 to the table that the flipper would be spending on RE commissions alone. . . not too shabby.
I partner with large scale (and noobie) fix and flip investors on the financing side @Charles Coaston . Depending on the property, I require investors to come to the table with 10-20% cash (of the purchase price) and I fund all rehab / renovation costs. I also have met private money lenders that will provide full financing of the property, but take a very large equity stake when the property sells (JV - Joint Venture structure). However, I don't know any of these JV lenders in the Pittsburgh area. Feel free to reach out with any questions, I do deals in Pittsburgh all the time. Good Luck!