All Forum Posts by: Vee Vu

I don't feel comfortable to do JV with a GC yet. Since many things will happen unexpectedly for the first project so I decide that I will just do it by myself and hire a GC. And I'm still looking for good GCs. Thank you so much for your advices @Jesse Blaine @Tom S. @Catie Lawrence. I will keep you guys posted if I end up doing a JV with a GC.

@Justin Schreibeis so you how much should I ask him to put in to make it a fair deal?

Hi everyone, I'm planning on doing my first flip, and I don't know much about renovation. I found a good GC with great references. He agreed to help me out if we split the profit (70% to me, 30% to him). I will put my money in for down payment (hard money lender, this is his connection). He will get paid for the renovation job, and plus 30% of the profit. He will show me the process of doing flip, and teach me as much as possible.

Will this be a fair deal for both sides? I just feel like I'm taking all the risk here, because his renovation job gets paid for sure, no matter what, and the profit is a bonus for him.

Should I ask him to contribute a part of down payment (how many %)? or closing cost? or a part the renovation cost?

Thank you!

Hi everyone, I'm planning on doing my first flip, and I don't know much about renovation. I found a good GC with great references. He agreed to help me out if we split the profit (70% to me, 30% to him). I will put my money in for down payment (hard money lender, this is his connection). He will get paid for the renovation job, and plus 30% of the profit. He will show me the process of doing flip, and teach me as much as possible. 

Will this be a fair deal for both sides? I just feel like I'm taking all the risk here, because his renovation job gets paid for sure, no matter what, and the profit is a bonus for him.

Should I ask him to contribute a part of down payment (how many %)? or closing cost? or a part the renovation cost?

Thank you!

You should create a detailed plan for what improvements you need for the house. Then walk through the house with at least 3 different investor friendly contractors, and ask them to give you detailed quotes. You will know your rehab budget works for that house or not. 

@Cameron Chambers, if you do a flip, the lenders still require some down payment. How about talking to diiferent lenders about FHA and down payment grant program? You might be able to buy an owner occupied house with ADU or multi family and live in 1 room/ 1 part & rent out the rest of the property. Then you have some time to save more money for flipping/ the next rental while your tenants help you pay the current mortgage.

@Brandon Benitz You can call few brokers in your areas to ask what’s the cap for your area. Or contact any realtors, they can help you run comparative market analysis to decide the property’s value. Or you can google “comparative market analysis” method and do the math by yourself.

@Jacob Trogan I think it doesn’t matter if it’s a duplex or a single family home. As long as it can provide positive cash flow (at least $200/unit), you can buy and learn from your first investment home. Good luck!

@Jeremy Babin I think you should calculate based on $500/room. $700 maybe for furnished rooms

@Bridger L Logan I’m using this strategy for my home now, so I live for free. But there are things you need to consider, like: everyone has to follow house rules to avoid drama, excessive use of kitchen and bathrooms leading to plumbing issues, being on call 24/7 with any problems, etc. Otherwise, I think this strategy is a good practice to help you feel if you really want to be a landlord.