Expansion and growth opportunity?

[Michael J Callinan]

I would appreciate feedback regarding an opportunity that has presented itself and wanted to know some potential options on how I should proceed. A quick background: I have performed and completed over 30 flips and rentals in the last three years in my market. The most so far was 5 projects underway at once. The more I grow the more some of my investors would like to be more involved which is good. However, this is the second time I have been approached by private lenders who can bring in colleagues to have "unlimited" access to funds needed to grow and expand. They have financial services backgrounds so they are always balancing risk/reward. They are younger like myself so they are looking for more than an annuity type of payment with a syndication. In this business we all know that having access to funds is a great thing to hear. Having said that, they want a bigger piece of the pie than they are getting (which is 10% ARP) They are not unhappy with the returns but like most entrepreneurs when they see an opportunity to grow and earn more they want to seize it. I certainly want to keep expanding.

My question is I have no problem performing at least 10 flips a year the way I have been running my business already. I have briefly looked into small commercial properties to expand and the other option is expanding into different markets in my state and performing more deals. Do you think it is worth it to perform more deals and give up more of the profit? Utilize more funds to buy commercial properties?

I appreciate anyones thoughts if they have been in this position and how it turned out for them.