All Forum Posts by: Ryan Mortimer

@Sam Shuehon-site. Thank you. Learning something new everyday!

@Marc Winter thank you. Great input. I didn't know they can't share their commission.

The problem I see is he does not want to be a passive partner. He wants to be active in flip, learn how to rehab and be onsite during the build etc. He would be mostly learning and not contributing a whole lot besides some onsite coordination, surpervising and probably some input on design and materials. As a new father, I welcome this since there will be times it's hard for me to be onsite.

Would it be reasonable to assume he wants some of the profit post sale or would his profit solely come from his commissions for the buy and sale?

What is a good way of splitting profits for flips if I partner with a realtor?

I ask because I recently had a realtor reach out to me that I've worked with in the past who wants to partner with me on a flip. He is seasoned agent but with no rehabbing experience but wants to learn and help and will bring cash to the table for the deal. I have a half dozen flips under my belt and a new construction build. Lets say we go 50/50 on acquisition and rehab costs. He gets commission on the front and back end as the agent. Is it normal for the commission to be shared if partner? If so, what is a reaaonable split? I would have lead during the rehab but he would have lead on purchase and sale so would a 50/50 profit share to include commission be reasonable?

Any advice on how to share profits would be appreciated.

Thanks.

@Stephen Jones

I'm assuming you're selling the 8 unit for capital to put into the 43 unit? If so, suggest finding a partner to help out. With the number of properties you could get creative with the partnership structure and use one or both of the 8 units, the 43 unit or some combo as means to get the deal done. Also could refi and pull any equity out of either of the 8 units.

I'm pro getting the 43 unit even if its more headaches, class c but cash flows well.

@David Fernandez

David, thank you for information! I'll be checking them out today!

Hi All,

Relatively new to BP and enjoying all the content and discussions. I have my first flip in Montgomery County, Md and it's causing some unforseen headaches. I primarily working in NOVA so most all my contractors are VA based too. My VA plumbers want nothing to do with coming to MD and dealing with WSSC. Additionally, my carpet and LVP company went out of business so im scrabbling to fill gaps. So my queation to you all.

1) Does anyone have any good plumber recommendation in Maryland based around The DMV.

2) Can anyone recommend any good flooring wholesalers/dealers for carpet and LVP?

Thank you.

Vr,

Ryan

@Rod Hanks thank you. I'll look into them.

Ok so hello everyone... my name is Ryan, its my first time posting and I am fairly new to game of real estate. Im located in the DC, Maryland, Virginia (DMV) area and I just pocketed a good chunk of money from my first build and sale and already have my next target picked. The next build is at a whole other price point. Acquisition ~$725k, build out ~$325K over 7-8 months and resale at $1.6M. Its my second build at this scope but its exactly the same scope and complexity as what i just finished....just in a much nicer neighborhood so resale is much higher. Now the profit from my last place won't cover these types of numbers so im looking for help vetting and/or finding a good hard money lender.

I recently got to know another local flipper and he informed me of a private lender he works with that covers 100% of the acquistion cost and charges 1.5 points and 13.5% (no rehab cost covered). The catch... apparently he is pretty squirrely and hesitant with lending to new guys (understandable) so he requires the veteran (the flipper i recently met) to co-sign. This makes me nervous. Does he now own half the property or is he entitled tonhalf the profit? Id assume he now takes on risk himself since he cosign with me. Am i being overly anxious or parnoid here? What can go wrong? (I admittedly dont fully comprehend the implications of him cosigning) He assured me that he would not be involved and that the .5 point goes directly to him as a finders fee. After three properties done with him it goes to 1 point and 12% and no cosign. Soo my question...to good to be true? Run for hills? Or completely reasonable?

Additionally, does anyone have any good recommendations for hard money lenders im the DC, Maryland, Virginia area that they have experience with?

-Ryan

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