Expect about six months between buying and getting your money out of the property, not one month.
There are over a hundred books on real estate investing, as well as other sources of information, such as this website.
You would do well to study enough to know that you and she are not getting into a bad deal.
I don’t believe I have ever seen a good book devoted just to getting a partnership going in real estate investing. You might find some helf in a NOLO PRESS book on partnerships. Check out their website.
You will need some good partnership agreement. As you work out the agreement–which likely will take many hours–you will get an idea of whether you and she are compatible or not and if your ideas and approaches are meshing well. If not, stop before commiting to buying any property. A good partnership is strong when the two partners bring different strengths to it. Financing and “doing” are two possible ones that can be strong. Beware of a partnership built on two persons feeling weak and seeking each other to compensate for those weaknesses.
One hint: I found with my first partner that we should only take actions that we both agreed upon. Sometimes that took a lot of thinking and self-analysis to figure out what made sense.
If she is a beginner, I would suggest she spend about six months to 18 months studying up on real estate and real estate invesing before buying the first property. There is a lot to know. Community colleges often have good courses intended for real estate licencees. This web-side will complement the other information.
Good Partnering & Good Investing****** Ron Starr********
Recently a friend told me that she wants to get started investing in real estate. She plans on buying single family homes,doing minor repairs,and reselling the properties.
I may have opened my big mouth to soon but I am hoping someone can help bail me out or at least tell me that what I proposed to her will work.
I told her to bring me a deal and we would work on it. basicaly I want to be her finance source.I told her that there wouldn’t be any closing cost involved. she seemed to like that and I don’t blame her.
It seems to me that I heard at one time that “no closing cost” was one of the benefits to doing a seller finance deal.
If that is the case, or still the case I would like to know please. also can the deal be structured so that she will be able to flip the property in a month or so and make money?
Whenever Real is bought and sold there will be closing costs involved. These costs can include but not be limited to: If applicable, Any deed transfer taxes , closing or escrow fees, title insurance, appraisals, document preparation fees, recording fees, courier fees, etc.
Now as to WHO will be resposible to pay these costs is FULLY negotiable between you and your partner, seller, or buyer.
As for going the seller financed route to SELL your fixed up property FAST, its a GREAT program to use both as a marketing and financing tool to expose your property to the marketplace and to move properties quickly.
Generally, a quick flip type deal will require some payment seasoning of 1-3 months before the paper becomes very marketable. There are some funders (like ourselves) that will consider purchasing a newly created note as the result of the resale,however we will factor some additonal risk into the transaction.