All Forum Posts by: Pace Jordan

J Scott wow! Your website is awesome man! Thank you for putting all that work into something like that. That is truly amazing and GENEROUS of you to share the information you have had to learn the hard way.

Aaron Junck - Great question! Most of the flippers that I manage properties for pay points on their money, but most of them dont know how to raise private funds, or are too afraid to approach people who's main job is not lending.

J Scott Thank you for taking the time. I really appreciate it. 10% sounds great. If that is the typical number, I most likely will only raise private funds in the long run, but to get me going and to build a track record that people can believe in, I will have to do what I can.

I cant thank you enough for giving me that tidbit.

Im planning on getting into rehabbing/flipping. Im ready to approach a few friends/family members about investing in me. I would greatly appreciate some advice as to how much I should offer to these potential investors.

I know that things are never the same for anyone so let me give you some info, so that you can understand where Im going…

1. Im looking to raise $75,000.
2. I plan on buying homes between $150,000 and $200,000
3. I plan on using hard money for 80% of this deal. This will cost me 18% per annum.

I understand that paying a private investor AND a hard money lender puts me in a situation where I may not make much money myself.

Im thinking that I could offer a percentage of the profits, or a yearly percentage to hold their money. Id much rather land a deal that is based on what is earned and not how long the money is held.

Is my thinking off?

Please help!

Thank you in advance.

Ryan Outon - Thanks for the reply man! Do you have any clubs that you can suggest?

Brian Burke, did you do the work yourself? When did you decide to go into real estate full-time?

This is a great topic. Im definitely looking forward to the answers you get here. Im a newbie and this is the exact type of thing I need help with! Thank you.

Wow! Thank you everyone. I just finished up a home for one of my investors. I have all my own crews and I would consider them a wonderful team to have, however, I end up doing a lot of the physical labor towards the end of the project. I call it the "final touch" that most people dont know needs to be done.

Last night, when I was doing the "final touch" I was completely happy with the result and unhappy that it wasnt my own flip. I am more than motivated to do my first flip and get going in the direction of everyone who posted.

Travis Daggett, thank you for reaching out. I look forward to hearing back from you soon.

Tracy Royce, you are awesome. Thank you for the guidance. Ill need your help in the future, Im sure.

Brandon Turner, thank you for the excellent tips. I didnt know that but it will definitely help!

Hi! My name is Pace Jordan. For the past year, I've been managing the real estate rehab for local investors here in the greater Phoenix area. I came from a completely different sector with the goal of investing in real estate on my own. I look forward to being a small part of the BiggerPockets.com community.

My biggest goal is to emulate what some of my clients do, which is earn a full-time income from investing in home flips in Arizona.

My next step in my process is to get some basic disclosure documents together and begin raising some friends/family money for my first flip. If anyone has any tips or great resources for this, I would greatly appreciate it!

Thank you for viewing my post.