General guidelines for investing

[Jeffrey Johnson]

I am looking for a little advice on what I can do to both profit and protect myself in a couple different situations. I have a co-worker who is finding properties to rehab. He has found a number of them, but has been having issues with investors backing out at the last minute. I am not sure why they are backing out and will need to find out. We are looking at 2 ways to work together.

The first way would be me providing the capital to meet the 20% down. I want to know in this situation what I should do to help protect my investment and to make a profit. But my first priority is to make sure I get my investment back to at least a break even point. What are some things I should do to structure a deal like this?

Second is forming a partnership. With me putting the money down to purchase the property and therefore taking the bigger risk, how would you structure this partnership?

Any advice would be very helpful.

Thanks