There is a definite liability to being a "GC" of the project, vs the I didn't realize, my contractor didn't tell me I thought they did it ... for minor things

I'm wanting to get into Multi Family development in the Houston area and have started to look at potential projects.

My interest was sparked this summer after passively listening to a free version of "Rich Dad, Poor Dad" while doing home reno projects around the house.

if your projects were profitable, why not find other investors and pay them the loan and move on? 

Purchase price: $131,000 Cash invested: $41,000 Off market deal - Going in this project with an Opportunistic BRRR mind.

Not sure if the goal is to buy turnkey or do a value add project.

Here are some key red flags to watch for:🔴 Lack of experience: A borrower without a proven track record in real estate projects may struggle to navigate unexpected challenges.🔴 Overly optimistic projections: Unrealistic ARV (after-repair value) or underestimated rehab costs can signal poor planning—or worse, a lack of transparency.🔴 Incomplete or disorganized documentation: Missing detailed plans, financial statements, or timelines could mean the borrower isn’t ready to execute the project successfully.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.

My build cost psf for my own projects is around $135-$145, and I charge people between $190-225 psf. 

I just want to connect with other people who are doing short term loans on real estate projects that are not institutions.

You also need to be able to rely on project management skills to manage the project to stay on track.