Looking to hop on board with another RE investor

[Ali Al-Mashat]

Hello everyone, 

First of all, I hope I put this in the right section If not please had a moderator move it to the appropriate location. 

So, as some of you have seen in my intro I am new to the real estate investment world and live in Los Angeles. I have met a neighbor who I am calling my current "mentor" because he has been investing in real estate for about 6 years now and has shown me how he runs his own business. I recently met him about a a month ago around the same time I discovered BP (cool coincidence).  

He is currently investing in what are called "receivership programs" in Baltimore, MD which are basically taking homes in transitional areas and offering them free and clear for investors to buy, rehab, and sell. (Apparently wholesaling is not allowed on these properties) He has purchased 5 properties and is currently in escrow. He has offered me an opportunity to invest myself and put in some cash for rehab costs to hopefully get a return on investment once the house is flipped. From there Id like to take any ROI money and just go on to the next property.

I guess my question is, does any of this raise a red flag for you? He seems to know his area well and has done flips in the area, This will be my first time investing but I really do want to jump in while I can. I want to start low between $1000-$3000 just so that I am not risking too much at first with a new partnership. Ive done my research and by the looks of it these programs seem legit... just to name a couple:

http://www.vacantstovalue.org  

http://www.onehousebaltimore.org

I should mention he also says he travels to the areas constantly, and is staying there during the rehab getting everything in bulk and rehabbing a couple of homes at the same time. 

Any advice, thoughts and input would really be appreciated. 

Ali