Newbie investing 10K with Flipper
Through normal conversation with strangers I met a guy that flips home in my area. We exchanged information and went about our way. I mentioned this to a friend of mine that is a HVAC contractor and he says he has done work for him in the pass.
I met the guy for coffee and he told me he was doing 6 flips right now and does a lot to help newbies whenever he can. He gave me an example of one newbie investor that invested 10K and got 16K once the home was rehabed and sold. All the while gaining knowledge of the processs. He offered to help if I was interested. He mentioned he is always looking for deals and if I wanted to invest he will partner with me.
My question - (Being a Newbie) If I have 10K to invest how would you'll approach this situation? How would you determine if you would partner with him? What are some questions I should ask? If you decided to partner how would you structure the partnership? And any other suggestion would greatly appreciated.
Keep in mind have read a number of books related to real estate and have a fairly good understanding of the topic. I feel like its time to for me to get in the game now and wanted some advice on if this is a good way to get started.
Thanks in advance.
Most Popular Reply
I would run. If it sounds too good to be true it probably is, why would this guy offer a 60% return to a newbie, when he could borrow from a HML at 12% this does not pass the smell test to me. If you proceed be extremely careful, I might even look up properties that he owns in the county records so that you know there would be something you could go after if legal action was necessary.
Overall this feels incredibly shady to me.