Becoming a (small-scale) financial partner for my first flip deal

[Alex C.]

Hello,

I've been reading the forums/lots of REI books and listening to hundreds of BP podcasts over the last year, and I'm ready to jump in and start on my first deal. My long-term goal is buy and hold, likely with BRRRR-style rehab and refinancing where possible to steadily build a portfolio. Throughout my education I've heard from investors of all levels of experience that pretty much everyone makes their biggest mistakes on their first flip, and that it can be considered a success to just break even on the first one. Many times an experienced podcast guest will respond to the question "what would you differently if you could do it all over again?" by saying that they would definitely partner with someone who knows what they're doing for their first deal or two. Learn from someone else's mistakes, don't reinvent the wheel, etc.

My goal for my first deal is to financially partner on a flip with someone who has some successful rehabs under their belt so I can be involved in a deal, see firsthand all of the stages of the process, and learn the basics from someone with some proven experience.  I have $25,000 to put towards this, and I'm in southwest Ohio where distressed 3/2s are often well under 100k.  I know the details will depend on the specifics of the deal, but I could use some advice on some options for how a deal like this might be structured.  My guess is that there would be an x/y split of whatever profit is realized at the end of the deal (rather than interest or points being involved), but I would welcome any thoughts or suggestions on this.

Thanks,

Alex