Flipping with no money

[David Rice]

Hello forums, I am new to real estate though have read a few books (including the UBG) and listened to the podcasts up to show 74.  Recently Ive found a partner who knows the hammer side and wants to partner with me since I'm wiling to do the paper side.  We want to flip since its within our skill set, the only problem is that neither of us have any extra money.  My plan is to talk with hard money lenders and ask them what they would need in a deal to offer 100% financing of purchase rehab and estimated holding costs, then go to local wholesalers and ask them to find a property that they can part with for those numbers in exchange for a percentage of the final after repair sale.  

my question is to those that have experience or knowledge; does this seem like a decent plan, are there any places that it could be improved, or is this a no go?

Thanks so much for sharing your wisdom

David Rice

[Brad B.]

Hi David, 

Unless your partner is really experienced at rehabbing or you find a really light rehab project, I would just hire a good contractor. I think it would be less risky especially when using hard money. The problem with having your partner do the work if he doesn't do it everyday, is that it can take way longer then you would expect. That could get you into trouble with your lender. Your best partner in this situation would be a money partner who could find the whole project and split profits with you at the end. That is much less risky.