I'm in the process of looking for an equity investor and I'm trying to figure out how I will be able to make ends meet while I'm rehabbing a house. I plan on doing the work myself to increase my profit margin. I see two possible situations:
Situation 1) I continue working my current construction job and rehab on the weekend and any other time I can. This way I can continue to have money coming in every week, while still flipping a house. The downside to this is obviously how much longer this will take than if I were to be rehabbing full-time.
Situation 2) I stop working my construction job and rehab full-time. I find an investor who will pay me an hourly rate throughout the project. After the property sells, whatever I was paid during the project is deducted from my 50% portion of the profit.
For example:
20,000 Profit (10,000 each)
5000 Salary During Rehab
---------------------------------
Investor will get $10000 and I will get $5000 since I've already been paid $5000
Let me know your thoughts on this or if anyone has been in a similar situation.
