When you sell your old property you exercise your option and purchase the new property.4.

@David Dachtera, I did the same exercise in a COBOL class ;)

As I stated above, please exercise caution and make sure fully executed documents are received prior to wiring funds.

Basically, flip partnerships suck unless you spend a long time being clear about the roles and payouts, etc.

In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly.

Make sure you have roles and responsibilities set up.

Assume you invest in paperstac instead…if those notes default what is the cost of exercising the lien and acquiring the property?

That clause avoided a lot of headaches when the seller eventually exercised their option.Seattle permitting can really be a curveball.

It's too important of a role to be done by a moonlighter whose business doesn't rise and fall on it.- Understand what you value . . . do you want to have a phone call from the PM every Friday? 

If you’re newer to real estate, role-play scenarios with a mentor or colleague.