Looking to partner with someone for a fix & flip

[Lucas Benjamin]

Hey Folks,

I am new to the world of fix & flips, however I have extensive experience in construction management (though primarily commercial general contracting). I've been relentlessly researching all things real estate over the past couple years - reading countless books, watching hundreds of hours of YouTube videos, listening to thousands of hours of podcasts, etc. However, I think we can all agree that the number of books you read and the number of podcasts you listen to are essentially irrelevant until you start putting that knowledge into action. 

I'm tired of sitting on the sidelines and feel I've started to fall into the "analysis-paralysis" trap I hear so much about. I'm ready to get to work. 

Being new to the LA market, I'm looking to partner with someone who has established relationships with local contractors and/or experience with creative financing. In return, I'm confident in my ability to find deals and manage the rehab process. I already have a couple potential deals, but the biggest hurdle I'll face is finding a private money lender who's willing to lend to someone with minimal experience. I'm walking with a contractor today to get a rehab ballpark estimate before making a formal offer, but want to be prepared for the next step should my offer be accepted. 

If this is of any interest to someone out there, please reach out. In the meantime, I'll be going to local meetups to find what I'm writing about here. 

[Andy Sabisch]

As far as HML's go, they will double check your deal to make sure the numbers work (for both of you) as they are not going to lend on a property that they have not vetted.  If the numbers do not look promising, they will not lend and that tells you something was not figured correctly.  They can help you see where you missed the mark and that will help you screen deals to find the right ones.

It sounds like you have skills that can work to support a JV deal.  Your local REIGs will be a great way to meet fellow flippers and look for those that have experience but may not have the PM skills you do or can't find a deal.  If you bring the missing skills to the table, you both win and you will learn what you feel you are lacking now.

Use the calculators on BP to get you focused on deals and see what works and what does not work.  After a while, you will know just from looking at the listing or a drive by if you are in the ball park.  We run the calculator on multiple properties each week even if we are not actively looking . . . keeps us in tune with the market and you never know when a deal will appear.  

Talk to some HMLs and see what they are offering for rates and terms and what they will do for a deal review that can help you confirm your deal numbers.  A warning however is that all HMLs are not created equal and if you find one that wants money upfront and promised to fund any deal, hang up and keep looking . . . you will see a number of newbies get scammed in this area.

Good luck and feel free to reach out with any questions