All Forum Posts by: Hattie Dizmond

Nick...this is another question where the answer is as personal as the type of underwear you prefer. ;-)  Consider forming a partnership like a marriage. Are these people you can stand to deal with in good times and bad? There will be conflict, but are you guys able to deal with it in a healthy way?  Do you have similar core values...meaning, do you make tough decisions using the same moral compasses?  I could go on, but I think you get the point.  

I have a partner. It's my sister. She is also my best friend. We definitely don't always agree, but we respect each other and approach those disagreements from a logical, non-emotional point of view.  We decided up front, and wrote it into our operating agreement  (Yes, I have a formal 15 page operating agreement with my sister.) that all decisions must be unanimous. We deal with differences of opinion, but when either of us has a real doubt, we just don't do it.  We trust each other to handle our own parts, and we clearly define those parts, so we don't step on each other. We also keep the other looped into what's happening with our part, in case one of us has to fill in for the other.  Basically, we operate as though we were working together.  ;-)  the difference is, in my 9 to 5 job, my personal reputation is not on the line, when my coworkers make decisions and do things. When my sister and I speak or act, the other's reputation is at risk as well as our own.  She is one of the only people I have that much confidence in. 

I would advise you to consider these things as you contemplate what makes sense for you personally. The math is the easy part!!

It's been a rough couple of months, personally, but I'm back in the game, focused...encouraged...encouraging (more importantly)...and on a mission!!

welcome...start with the educational materials here on BP...the Ultimate Beginner's Guide (free) and then move on to the paid Brandon Turner publications and the J Scott books. 

dude...that's like asking what's the best car color!!  What's best for you is probably not best for me. I'll give you a quick example...a live in flip would be easy for me to manage, because I'm single and have no children.  On the other hand, my business partner could never do that, because she's married with 3 small children. 

I suggest you check out some of the Brandon Turner blogs and publications. He does a great job of going into detail about the positives and negatives of house hacking and live in flips. 

Wholesaling is not for the faint of heart. And, even though the price point for entry is comparatively low, it requires you to be an expert at deal analysis, rehab estimation, marketing, negotiation, creative strategies, and multiple exit strategies.  The folks who dive into wholesaling thinking it is an easy entry are 50% of the reason wholesalers are widely disliked. The other 50% are the ones trying to pass off junk as deals. 

I simply explain to people that I'm a real estate investor...period. they will sometimes ask what that means, and I tell them, "It just means we buy houses for different purposes. Sometimes we fix-and-flip the houses, , sometimes we make keep the property as a rental, sometimes we work with other investors who will do similar things. In the end, we are just a couple of women trying to create a legacy for their children."  I also tell every sell, whether they ask or not, that an investor is what I am. Full disclosure up front...all the time. 

 They aren't generally organizations. They are usually individuals you have connected with and have built relationships with. You can't exactly find then in the Yellow Pages. 

I'm looking to connect with folks on BP who are doing high-end flips (ARV's north of $1mm) in the North Dallas (what I refer to as the private school zone) area.

Reply here or feel free to PM me.

Hattie

not illegal...at least not in Texas, yet!!  If you would like to PM me, I'd be happy to explain the process, or you can simply search for wholesale information here on BP. 

If the down payment is a determining factor, then consider some more creative financing arrangements. A good deal should attract investors willing to partner with you. There are private money lenders who will front the capital for a % of the profit. The deal will have to be rock solid, with multiple exit strategies. And, as inexperienced flippers don't expect a 50/50 split on the first deal. The PML is the one truly taking the risk. But, 30 or 40 percent of something is better than 100% of nothing. The split will improve as you build a track record. 

There are other creative approaches you could consider as well. But, a HML is going to require equity. If the deal is good enough, that equity may be baked in. Most likely it will be forced equity via a % down.

claudia...that's a great area for flips. Why not get it under contract...an assignable contract...and wholesale it to a flipper. Then you can offer a discount on the wholesale fee for the right to shadow them through the flip.