All Forum Posts by: Christopher Lynch

I’m looking to get started in the fix-and-flip business and have a few questions. I have a couple of funding options on the table and I’d love to hear your thoughts:

1. Funding Approach: I have capital partners who are willing to fund 100% of the project in exchange for 50% of the profits. Alternatively, I could explore hard money lenders. What would you recommend for someone just starting out? Should I stick with my partners for the initial flips or go the hard money route? I’m asking because I plan to eventually scale and get into multifamily syndication, and I know learning to raise capital will be a crucial skill.
2. Scaling with Private Lenders: Once I’ve done a few flips, I’m thinking of finding a group of private lenders to help me scale the business. Do you have any tips on how to approach and structure deals with private lenders for scaling?
3. LLC Structure: For the LLC structure, would it be best to create a new LLC for each flip, or should I just create one LLC that handles all of my flips? I want to be sure I'm structuring things in a way that protects my assets while allowing for growth and still keeping money partners protected.

Any feedback would be awesome. 

 I am on it! 

 Hey Henry, he starts talking about it at 10:07 .

I should have been a bit more descriptive. Here is the podcast episode that I am referring to when asking this question. 

Bigger pockets Podcast 334

I recently watched an episode of BiggerPockets where the guest discussed how he started a real estate investment company and buys commercial properties with 0% down. While I understand the basic structure of General Partners (GP) and Limited Partners (LP), I was under the impression that GPs always had to put 'skin in the game.'

I have 10 years of experience in retail real estate and a couple of partners who are interested in investing with me. I also have some capital to contribute.

Could someone explain how syndications are typically structured, and how are people using Other People's Money (OPM) to build large portfolios with little to no money down?

 I am looking to tap some of the equity. Right now it is about 50% equity and I would like to access 20-25%

 Who do you recommend I call? 

Are there any lenders offering HELOCs for small business owners who primarily use bank statements to qualify, especially those with write-offs? The credit score is around 720, and the property is owner-occupied, which might simplify the process. Any recommendations would be greatly appreciated!

I am currently an agent who is to expand into this side of the business.

How many of your are still making a full time income in this current market with flips? 

Hi All,

I’ve been a Realtor 8 years and want to transition into the fix and flip game.  
 

I have been thinking about the best way to start. It seems to be all about sourcing the deal. I plan to meet some local investors to talk about the option to go source a deal and partner on it. 

Here are my ideas- Cold calling owners that have banged up homes, using deal machine and door knocking. Yes this is all sweat equity and I’m willing to do it to get started. 

Next- Find a local investor with experience I can trust to partner with and teach me the process. I think this will be a value add for them because it’s a deal they wouldn’t have had and it’s a great way for me to learn with lower risk. 

Structure- When partnering with someone what percentage does the person who sourced it usually take. Also, do I need to set up a LLC to avoid risk? Can 2 LLCs be on a contract ?

Also, is there anything I should know before doing this? I’m all ears and I’m just looking to get started.