All Forum Posts by: Jonathan C.

There is an experienced wholesaler/investor who is always sending properties out to his buyers list, which I am on. He is willing to partner up on most of the deals, and is open to different ways to do that: i.e. 50/50 split of the investment where he manages the work and then some sort of profit sharing arrangement on the back end.

I have about $125K to invest and 740-760 credit score. I just don't have the first hand experience and so am looking to partner up with someone, give them more of the profits, but make a little bit of money and, by far most importantly, learn in the process.

Is partnering with a seasoned wholesaler/investor like this a good strategy? My only concern is that since they are more knowledgable they may find some sort of loop hole to screw me.

If partnering like this is a decent idea, I assume we would work with a neutral lawyer to set up a JV agreement where we outline exactly who pays what, who does what, and who gets what on the back end?

Thanks, Jon

Great information from Justin.

Just like wholesalers who subtract the rent from the PITI and say that is how much 'cash flow' you're going to get... not taking into account vacancy costs, utilities, maintenance, etc etc. That's the same thing with those flipping shows--oversimplify and paint an unrealistic picture.

Important to take into account all costs when evaluating a deal.

Good topic

What did you accomplish?
-bought first property-- duplex-- that i use as my primary residence and rent out the other half
-in the process of buying second property as rental

Your best success?
-taking action- not falling into the ~95% of budding RE investors that never actually purchase a property

Your biggest mistake?
-having a full time job that doesn't allow me to devote more time to finding and analyzing properties and continuing to learn

What did you learn?
-went from knowing nothing in April of this year to having a basic understanding of flipping, landlording, and creative financing

Did you achieve your goals?
-yes-- this year is the time to establish enough of a cash flow to quit my job and focus on this full time by this time next year