To meet their loan-to-value ratio (LTV), almost all lenders require borrowers to have some skin in the game, or equity, on any fix-and-flip project.
A real estate tax attorney prepares or reviews all of the paperwork involved in buying or selling property and represents the buyer or seller at closing.
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Friends and Family: A logical place to start
Friends and family are a good place to start when seeking financial help. You know them, you have experience with them, you may have worked with them on other types of projects before, and you have access to them to submit your deals.
Formulate your proposal:
Before contacting friends and family, do a detailed analysis of each investment opportunity. Research the project carefully and explain it very clearly and honestly.
Next, prepare a business plan that clearly articulates the project timeline, projected achievements, budget, and the terms of the proposed partnership, joint venture, or investor relations you wish to enter into with them. Think of the whole process for that business relationship.
Real estate partnerships offer your selected family and friends the opportunity to invest money in your fix-and-flip project in exchange for a percentage of ownership.
As an equity partner or investor, your family and friends have the opportunity to receive the cash the property generates upon closing. So while they take the investment risk, they can also benefit from the sale of the property.