Potential flip, first timer, finance conundrum

[Chirag Parikh]

Hi everyone! I've been shopping around looking at properties, and finally one property I am going to check out and it sounds like there is some seriously significant promise. I believe it is flippable, and is very possibly a great deal. 

MY PROBLEM: I am currently a student with no income though so I cannot finance it. Even though I'd love to be the one to flip it myself this is also my first flip. According to J Scott's "The Book on Flipping Houses" he suggested allowing an experienced flipper/investor take the project on, and suggested taking a very small cut of the profit (10-15%) as well as an agreement to allow me to watch the project and see it from start to finish. 

My question is how do I go about proposing this to an investor/flipper ? Do I need to get it under contract first, then find someone to play this role? Or should I just pass the property along to them and expect them to "hold up their end of the bargain" (this makes me a little uneasy not to get it in writing though)? 

My other option, is that if it is as great of a deal as I expect I could just wholesale the property and make my money. Personally though if I found somebody who would be willing to let me watch the flip from start to finish and answer some questions along the way I'd appreciate that much more and the experience and knowledge I'd gain would help take me a long way. 

Any thoughts and advice on this would be appreciated. 

Sincerely, 

Chirag

[Mitch Messer]

Hi Chirag,

First thing I would do is get that puppy under contract! I've learned the hard way that "you can't steal in slow-motion!"

Then, given your limitations in time and finances, I'd wholesale it. If you are lucky, you'll find a flipper who'll then let you look on once they close. You'd get paid, you'd make a great contact, and you'd get a chance to see the rehab process up close.

As you point out, at this stage the real value is in the learning, not the money.