Hi I`m a Canadian resident living in BC. I`ve been approached by a Florida investor who buys run down houses in nice neighbourhoods, fixes them up and flips them quickly for profit. He has maxed out his lending ability and is searching for a partner with "good credit" to help him get a loan on his next flip. He has offered me the following: we will send me $5,000 up front at the time of closing (original purchase). He will cover all costs from time of purchase to time of sale (including all interest costs on hard money loan). He will split all profits 50/50. He is financing these flips with hard money loans at 15% interest only with a balloon payment at the end of one year. After the house is renovated he tries to sell it below market for a quick sale. Both him and I will be on title, however the loan (120k to 150k) will be in my name only. All renovation and labour costs will be covered by him. The biggest risk I can anticipate is if the house doesn`t sell and he would have to service the hard money loan until is does sell. However I shouldn`t have to fund any expenses myself (in theory). Please let me know what you think about this proposal. Regards
Need some advice
- Thread starter hogan00
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