After analyzing the potential ROI, we negotiated a fair price of $58,500, ensuring room for renovation costs and profit.

We sell the property and each side get their money returned off the top then we split the profits 50/50.

This is the piece savvy investors know how to do to unlock outsized profits..Thanks Greg.

The goal is to rehab this house then rent it to a qualified tenant until my fathers passing, at that time he has it in the will that the property is to be sold and then the profits are to be divided up between the family. 

The current real estate environment that we've been in for the past several years hasn't presented any opportunities for deals like this.Because of the above bullet point, my real estate folio is kicking off a ton of profit each year which is fully taxable at ordinary income rates for me with federal plus state that means 42%From day one we've always self-managed everything, and built a great team of sub’s and handymen in every area, so that I’ve never had to do any labor.

Purpose of the fund: To purchase old land, rezone, demolish, and rebuild homes to sell at a profit.

Eventually you would exit (sell) and that would have more equity to make a profit after the cash flow losses or the investment generates positive cash flow in year 2,3,4 etc.

I have a question and would really appreciate your input.I’ve done a couple of fix-and-flip projects in the past using hard money lenders, but I’ve noticed that their fees and interest rates significantly cut into my profits.

Build a strong team of local agents, property managers, and contractors, and reinvest profits to grow your portfolio.

Net profit could dip to $20k-$40k, which is tight for this scale of project.Consider adjusting your reno budget or negotiating the purchase price.