Advice starting out Virtual Flipping...

[Bryan C.]

I am an out of town investor for the Cincinnati - Dayton Ohio area.  I have some money to invest and I am looking to do Virtual Flipping.  I am from this area and familiar with it, plus I have some friends & family local.  

I am seeking advice on the steps that I should take when seeking a partner....

- what should I check on anyone that I deal with?

- what things do you check when dealing with someone else?

- once I find someone to partner with, what docs need to be in place to protect all parties involved?

- what type of split or interest rate do you receive if you lend $$$ & if you do a JV deal?

[Darrin Carey]

Virtual flipping has additional challenges. Assessing the property from a distance is virtually impossible. A contractor, inspector or someone else can look at it take pics, and give their assessment, but it's never the same as being YOUR assesment.

Getting accurate info from sellers is a big frustration for me, whether it's a homeowner, wholesaler or otherwise.

if you JV with someone, you share the profit or even loss on the project. The rato is what you negotiate. Experience level, daily oversight, financial contributions are all factors. A bad JV can be hard to resolve.

As a lender, obviously, you are first to get paid, and in the worst case scenario, you can foreclose. 

Yes, you should check on anyone you deal with. Most importantly, you need to know what they do when things don't go as planned.

The docs will vary with the type of agreemnt, but they must very clearly spell out the roles and responsibilities of each party.