Calling all investors (Newbie Questions when first starting out)

[Blake Donald]

After much research I recently purchased my first home as a primary residence.

FYI (Purchase Price - $132,500

Renovations - $ 34,000

Appraised at $190,000 before renovations

I think I did a decent deal for my first time and not being a cash buyer or having much leverage, but now more than ever I am interested in pursuing investment opportunities in real estate. Being that I just purchased my first home, financially I do not have the capital to finance a deal myself. I know wholesaling is a “no money down” option which I am considering but I am currently interested in learning more about working with investors and partners with investing in rental properties and flips. I do have the work ethic, hustle, persistence, and I am working on gaining the knowledge to find these deals for potential investors/partners or even use hard money lenders.

What would they like to see brought to the table (a great deal of course) but would they like to see a verbal agreement or purchase agreement in writing before being approached?

When providing a calculation for the ARV, would comps using Zillow's recently sold homes be sufficient? Or an actual appraisal?

For the repair cost do you want an actual written up estimate from a proven contractor?

When flipping a property there would typically be an agreement to split the profits before beginning to work with each other. How do investors receive returns on rental properties? Are they paid interest during rehab period and paid off once refinanced?

Financially what is considered “skin in the game”? I know this is a vague question but with a few thousand dollars how can you prove your commitment to an investor? Pay closing cost?

I understand they would like to know the Exit strategy, rental or flip. Can rental properties be refinanced solely based on the cash flow and being able to sustain itself? Or should you aim for 40% mortgage to rental income ratio (dti)?

(the answer to many of these questions may depend on the investor but I would like to hear different point of view).

I know these are a lot of questions and I am sure the replies will generate even more but thanks for any and all feedback.