@Jay Hinrichs , I completely agree, and I am curious, where can he buy a 1K property?

This is very important because the contractors will not be paid until the work for a specific draw period is completed and the HUD consultant comes out and inspects the work.

Refinance when rehab is complete and rent is stabilized after 24-36 months.

Unless they are completely caught up on rent, late fees, and court/legal fees, I proceed with the eviction.

It sounds like two parcels, two completely separate residential buildings- which is better for you.

Mike Cartier thanks for the response, I may not be understanding this completely but how does the tenant actually get the money?

Hey everyone, I’m completely new to the investing game and am looking for some advice before I sink my money into a property.

Right now my Dwelling policy is 50% of my house appraised value, with an extended replacement cost on dwelling - this still doesn't cover my full house.I'm worried I am underinsured here and if I should get the complete value of the house covered - help?

All of this takes time, how much is completely up to you.If you can afford to do this NOW, then do it! 

There's a lot of discussion around partnerships, private lending, and hard money, but I don't see much discussion on the actual mechanics - what these arrangements look like in practice.My hope is this post can serve as a reference for those starting out, so we may get a better understanding of how these strategies are actually implemented as well as an ability to more accurately predict the profits and returns you and your lenders and partners can expect.If those with more experience would like to revise these numbers and statements, it would be most appreciated.These scenarios assume you, the flipper, are bringing none of your own capital to the deal.Typically, this would mean 1 of 2 scenarios...Private Lending - Someone you know brings 100% of project costs (purchase, rehab, acquisition costs, holding costs) to complete the deal and in return, they get a certain percentage return which comes out of your profit.Hard Money + Partnership - You get a hard money lender to cover 80-90% of purchase+rehab and a partner to cover the remaining 10-20% as well as acquisition costs (including hard money origination and points) and holding costs (including hard money interest payments).An aside about the structuring...Private Lending - A promissory note is created, and your private lender lends to you or your business.