Investor · Spring, TX · Member since 2016 · 25 posts · 7 votes
I found a property with a 3/2/2 SFR on .25 acres AND 2-two unit apartments on side. It was UNDER $200,000 and from the photos of the SFR it was move in ready. I want to go look at the apts, as they looked to be in good shape, but I couldn't see the inside.
My question is, when you find something like this, and you don't have the funding ability(I work at a school and have TRS not a 401k, so I cannot take a loan out against it, nor do I have 20% down, but I have about 60k in equity in my home, but the lenders I have talked to will not do a HELOC in my state, point is I can flip, but not buy and hold with my own financing) and you need a partner on the deal, how do you protect yourself from telling them about the property and them just taking it? I currently don't have it under contract or anything.
I am interested in taking a partner in on the deal, and I'm willing to take a smaller piece of the pie for birddogging, but I see this a major long term income with monthly profits exceeding $500 after NOE.
Suggestions? Is the only way to solve this is to get it under contract and flip it?
Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes
10y
Have you spoken to a motivated seller? Have you told him you intend to tie up his property with a contract you can't execute (no money) while you hope to find a buyer that won't rip you off? What else do you know about this property aside from photos? You haven't seen inside the apartments, they could be trashed. Maybe counting your profits a little too soon. There are posts here on BP about presenting a proposal to a lender. Read up and maybe go for a finder's fee on this one. Good luck.
Investor · Spring, TX · Member since 2016 · 25 posts · 7 votes
10y
I have attempted to contact the seller and they are motivated, I am trying to meet them to schedule. I am familiar with contracting and flipping, but not so much with having a partner and "showing my cards" so to speak.
As for the property, you have now stated my intentions already. Intend to execute under contract. I thought I made that clear. If the apartments are trashed, however, you are right, I need to see first, again, my intention. As for presenting to a lender, been there, done that, 20-25% down for a buy and hold, but I can get 100% on a flip.
Anyways, Thank you @Michael Stanton and I am trying to stay a step ahead and protect myself, hence the question-
Is there a way to not get bypassed if I show a potential partner this without it being under contract? Or is the only option to get it under contract and flip it?