Questions for Flippers

[Malte Lange]

Hello Bigger Pocket community!

I am brand new here (in terms of having an account), but have browsed the website for a while now. I have a longstanding interest in real estate and was wondering if I could ask members a few questions.
I'm mainly interested in setting up flipping opportunities, for myself and others. My main concern is finding opportunities and the funding. From what I understand, the main paths for financing have to do with some form of lending, either from the bank or a private investor. One way involves a lengthier process with lots of credit paperwork and both come with possibly large down payments.
I was wondering how interested people would be in opportunities in which they didn't have to put any money down, and instead their only cost would be associated with the repairs themselves.
How interested and willing would you be to do this on a scale of 1-10?
But the main catch here is the property wouldn't officially be in the flippers' name. Would this be too much of an issue? Does this change the above rating?

And finally, as a flipper, what other reservations would you have, given that there would be some form of contractual agreement in place?

Thank you for your input and help!

Malte

[Will Barnard]

What you are suggesting/proposing is very similar to what I have offered some sellers in the past.the difficulty is getting sellers to understand and be comfortable with the scenario (no easy quest) and the main issue is if the homeowner retains ownership while the "flipper" is doing the repairs, then the flipper would need a general contractors license otherwise he or she would be acting as a contractor without a license working on a home they did not own. A flipper does not need a contractors license so long as they own the property and thus are owner/builders but in your scenario, that is NOT the case.

Lastly, the problem can be, what if all work is done and the seller decides they don't want to sell or the sold price is not great enough to cover the repairs and profit? This format is very difficult to convince both sides and gave the proper paperwork/contracts in place to cover and protect all parties. Bottom line, without the rehabber being avlucensed cobtractor, this can not work legally (at least in my state and many others I am familiar with).