Seeking Hard Money Partnership: Flipping Success in the DMV Area Without Interest

[Shukr S.]

Hello Everyone,

I've completed 6-8 property flips in the wider DMV area, purchasing properties from foreclosures and the MLS. One notable project involved a complete renovation, including the addition of 3 full bathrooms and 4 rooms starting from scratch.

On each flip, I've generated profits ranging from $30,000 to $80,000. However, I'm currently seeking a hard money lender who can act as a partner. Rather than charging a fixed interest rate, I'm looking for someone willing to take 50 percent of the profit once the property is sold.

As a Muslim, I adhere to principles that prohibit the use of interest. Therefore, I'm seeking alternative funding options to expand my operations. While I have sufficient capital to undertake 1 or 2 flips at a time, the high cost of properties in the DMV area makes scaling challenging without resorting to interest-based financing.

Is this feasible, or is it a stretch? Any advice or insights would be greatly appreciated.

Thank you.

[Chris Seveney]

Quote from @Shukr S.:

Hello Everyone,

I've completed 6-8 property flips in the wider DMV area, purchasing properties from foreclosures and the MLS. One notable project involved a complete renovation, including the addition of 3 full bathrooms and 4 rooms starting from scratch.

On each flip, I've generated profits ranging from $30,000 to $80,000. However, I'm currently seeking a hard money lender who can act as a partner. Rather than charging a fixed interest rate, I'm looking for someone willing to take 50 percent of the profit once the property is sold.

As a Muslim, I adhere to principles that prohibit the use of interest. Therefore, I'm seeking alternative funding options to expand my operations. While I have sufficient capital to undertake 1 or 2 flips at a time, the high cost of properties in the DMV area makes scaling challenging without resorting to interest-based financing.

Is this feasible, or is it a stretch? Any advice or insights would be greatly appreciated.

Thank you.

This could be feasible but you may have to give up more than 50% of the profits if the investor is bringing in all the money. As an example in a typical syndication model the investors get around 70-80% of the profits. Now there is a management fee involved  in the deal so maybe it could bring it closer to 50/50. I guess depending on the price as well, if its a $500k deal and it makes $30k which is split. That most likely will not work. The investor will want a decent overall return.

Happy to chat more about it as we are in the DMV area.