1000 times sell and this is a great time to do that, you can even exit with a good profit.

In essence, the company could profit the same, but it's always about the worst case scenario. 

I already mail ~4,000 per month to absentee owners and we're getting about a 2% response rate, but our leads are low end/low profit properties.

I would pursue as two separate financed deals negotiated in the same purchase agreement (assuming state law permits this).

You can get a better deal if the property was a short sale because in this process you will get the profit as a buyer with no loss.

Once I became established in rentals I diversified to increase my profits and limit my risks.

I personally don't flip and have no experience doing it, and it would take higher capital in SoCal/San Diego so you'd want to have a feel for what you are doing, but I certainly think flipping is the more profitable move with where we are in the market right now (super high prices).San Diego most definitely won't hit the 1% rule.

Refinance costs money and will eat into your profits.

You can find value add properties in MFH and you can find '70% ARV - repairs' type properties in SFH, so there is large profit in both.

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.