Finding a mentor who can invest with you

[Alexandra Scardo]

I need some advice. I have a single-family home under contract. It should be a great fix and flip. I have the purchase contract, the contractor, real estate agent, and I am submitting to hard money lender tomorrow. I know I will not have enough cash to close so my plan is to find a more experienced investor who would like to bring the cash to close in exchange for me doing all the work. How do you recommend I find someone more experienced? And what do I say to them?

[Mark Cruse]

Your strategy seems way off and a set up of for disaster. You should have your funding/financing set up before you have the deal. What happens if they reject it? You should not put anything under contract unless you have the money to close secured. What happens if you cant find anyone? Also, going into deals with an un-vetted person you dont know can lead to massive losses. What if the partner is a fraud, fool or criminal? What if they are a liar or very incompetent? I cant be sure but it sounds like you are very new to real estate which leads me to believe you have never managed a renovation. If so, you have no experience in managing the contractor. Many of them are inept and must be screened. Even when they are good, you have to understand your own scope and how to keep them moving in accordance to keeping your project viable. I mean there are tons of moving parts here that can easily go sideways. I sincerely hope you didnt drop a huge EMD. Best of luck but in the future you really need all of those things solid and locked down before even thinking about getting a deal. You need a vetted partner you know can deliver and their experience and ability is verified. You need to have the funding in place with some form of pre-approval. If the numbers are not right and its not considered a decent deal, you wont get funding or a credible partner anyway. Again, best wishes here but slow down a bit in the future. There is decades of experience in this group so take advantage of it.