Fix and Flip.. Over My Head? Ha..

[Chris S.]

Credentials: I have 1 buy and hold that I purchased in 2007.. pretty bad time to buy.. ha.  I'm looking in to buy and holds, but I'd definitely do a fix and flip if it came my way.  The problem is that one may be coming my way and I don't have the experience right now.  

So today, I was walking down the street today and I saw a distressed home (which I noticed before).  It's in a great neighborhood, but the home is 3300 sqft and needs a lot of work, almost a full gut.

I saw a guy go inside as I was walking down the street.. apparently he was helping clean it out.  1st person I've seen at the home in all the times I've passed it.  I went up to the door and knocked.  He came out after about 7 minutes and I explained I'm a real estate investor.  He knows the owner personally and advised him to just get rid of the place b/c it needs so much work.. but the owner just inherited the home from his dad, who passed and was thinking about fixing it and living in it.

I talked to the guy for about 5 minutes and explained that we could do a quick sale and I can pay cash.  I gave him 1 of my business cards (that I just got.. ha).

If this guy calls me.. what should I do?  lol.. I was thinking about just bringing it to one of the guys at the local wholesale club b/c they have buyers.. I could also get a hard money loan and rehab it myself (right?), but this would be my first fix and flip.

Anyway, this definitely has potential if the guy calls me.. and the guy I talked to said he would go to bat for me.. Any advice?  Thanks!

[Casey Cuppy]

I would have one of the other investors come along with you. You will just need to get some kind of contract in writing with them spelling out the specifics of the deal (cash or hard money, when it will close, etc. etc.) I would close the deal through an escrow company to help with title issues and handling of the money.