Moving forward with what we have now.

[Daniel Jewell]

Hi everyone! My brother (Devin) and I feel as if we have lost momentum and want to get on with the next step. We were hoping BiggerPockets could help us see what we need to do next. I'm going to try to give all the information best I can.

We bought home from HUD in Madison va a little over a year ago for 120k. We rehabed and think it's new value is about 185k.

monthly costs:

Mortgage $950 (tax, insurance)

Electric $190

Internet $70.

I live there but have rented out the other two rooms for: $475 and $450

Plus 1/3 of the utilities. Witch make the out of pocket costs for that property about $150

including a very small cap-x

About 7 months ago my brother and I quit our job to work for a real estate investor. He pays us $25/hr (witch was more then what ether of us were making) and 10% of the ending profits of any FLIP we do. We don't need to do anything apart from do the work.

We manage the hole thing from start to finish. So he is not really involved unless we have a question during the rehab process. he handles the buying and selling.

He also owns a lot of other rental properties and has us do maintenance (roof replacement new flooring ect) in which we do not necessarily like because it take us away from the flip and the potential 10% of profits.

We live in Northern Virginia. Now meny of you may no that this is a expensive place to invest. The investor likes to buy homes for first time home buyers. So this means purchasing homes under 55k-ish

With that being said that means my brother and i have been driving A LOT! we have done 4 flips for him all at least 6 hours away. we stay at the flip on a cot mday though fday and drive home on weekends. We do all the work for 25/hr

It typically takes us less than 2 months to complete a flip

This is the address of the first one we completed. 111 Culver st tazewell va. (none have sold)

We're now in Raleigh North Carolina trying to finish up a flip.

He has told us once we gain enough capital to where we're comfortable putting that money towards a flip and partnering and getting a higher percentage and forgoing that 25/hr rate.

We also have 2 family friends that have expressed interest in helping us out

One is MrG the other is MrS

MrG has said he'd be willing to partner with us AND only us, up to 75k (but we will see)

He is very well off but is not exactly a W2 earner.

MrS has not committed to a number but when we talk about the first time home buyers market he's been receptive.

He works in tech and runs a business and W2s himself. He will not invest unless we operate under a llc. We think this is because all his funds are in his llc and a loan to another business is simpler for him. We have one but haven't holy operated under it.

My brother and I together have about 18k saved

And about 20k of 0% interest credit for the next 14 months

Were trying to determine what the best path is for us moving forward.

Should we continue with the investor? Witch he does not have another flip lined up after this one that should be done in the next 2 weeks. Witch would mean we would be hustling for handyman work, tree job, until he finds another flip.

Or should we really try to make something work with what we have (we don't really know how)

We kind of want to keep the first house but if it comes down to it we might consider selling. And we haven't been able to find financing with the history / nature of our income but we'll keep looking.

Or try to make something work with MrG/S (we kinda want to do something without the first investor)

We were kinda of thinking about doing (but please come up with your own opinions thoughts solution.) :

We try to find a property with a purchase and rehabs under 80k and have MrG/S cosign for a cash out refinance, if they'll go for it.

Or buy a higher end property and have MrG/S cosign and put down 20%, then rent it and then sell the one in Madison using the profit to pay MrG/S back.

Please give us your thoughts

Thanks Daniel and Devin