Partnership or Funding a flip North New Jersey?

Question

Hello everybody, I am curious to find out  what and why do you belive is a better. Partnering in a deal or just funding a flip?  Thank you in advance for your input.

Joseph Guzzardi Jr · Answer

@Sergio A. Chucaralao There a few things to consider:

1) Are you looking to be more passive or active?

2) Underwriting the deal

3) Evaluating and vetting the deal provider

4) Understanding what your ideal return is and what your timeline is for the return.

Happy to connect further.

Sergio A. Chucaralao · Answer

Thank you, it definitely makes sense.  Ideally a partnership with a person that already has a property but doesn't have funds for the renovation would be great. I have done couple of BRRRs in my area but with this new rates is very difficult to do full gutts.

Kevin Manafi · Answer

Hey @Sergio A. Chucaralao, that question really depends on the specific investor and their risk tolerance. Being a partner in a deal is obviously more active and hands-on, and you have more control over the day-to-day. If you're more experienced and have the capital and would like to be hands-off, funding a flip could be a different option to earn "passive" income--although the risk is much higher for you as you're placing your confidence in the investors and the deal you chose to fund. For this reason, you'd want to be pretty confident in your ability to vet and underwrite deals thoroughly before lending your capital.