The cart before the horse....

[Ricky Grierson]

   Now we have all heard the saying "the cart before the horse."  It reminds me of something my parents would say when they know i'm about to make a bad purchase as a young adult.  Everybody has to learn a few lessons the hard way right????

   So how does this pertain to my real estate questions?  Let me first explain about a situation I was fortunate enough to be put in.  A friend and coworker is the executive to an estate after the passing of his father.  It contains two houses directly beside each other.  YES!  A motivated seller that is not on the market!  A dream come true right?  Both I would consider fixer uppers but looking at the comps in that area, he should be leaving my plenty of room to fix both and turn around and put on the market(I have not analysed the property yet).  I am not really nervous when it comes to looking at the house and determining what needs to be replaced in order to sell.  I have done zero deals so far with the exception of my live in flip.  Here are my questions...

-  I would like to make my first deal and already have a cash private investor.  Would it be wise to make a move on these houses to flip with no actual bussiness and protection established?

-   I am also considering wholesaling the homes because they are more than an hour traveling distance.  Would it be wise to find a motivated buyer and ask them to let you be a part of their flip to learn what they do?  Basically bringing a deal to the table.

- I am in the process of establishing an LLC and talking with a local real estate lawyer. What questions should I have to bring him on the first meeting?

Also, If you happen to be from Southern Maryland, would love to link up.  Thanks for your time!

Ricky

[Audrick Brown IV]

Hey @Ricky Grierson. Congrats on find a potential deal to work with! Full disclosure, I have not completed any deals so you can completely ignore my input if you like. 

But my thought would be to analyze the deal as thoroughly as you can. Then offer it to a more seasoned investor and put into the deal some type of arrangement that allows you to learn from them as you go. I don't know how much research you've done in regards to finding a mentor. However, everything I've read thus far suggests seeking a mentor with a deal in hand. That way you can gain some practical experience. So I definitely think it would be wise to talk to a motivated buyer from that perspective. 

I don't know much about the LLC side of things yet. I'm not much help there.

Just my 2 cents! Hope it helps!

Good luck! Let us know how it turns out