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Kevin Ramirez is from Venezuela living and is doing business in Raleigh, North Carolina.
He started in Real Estate at 19 years old with a flip, found a JV partner to fund the whole deal and after that fell in love with the business. He currently focuses on rehabbing and wholesaling. Every deal he has done has been without his own money.
Currently 21 years old, still a one man operation, he is working on building systems to automate his business. With 19 deals to date in 2015 he is looking to close the year with 25.
He doesn’t yet consider himself an expert and stays open to learning more and more every day.
What you will learn in this episode:
- How Kevin Ramirez was able to get funding for his first deals even though he was 19 years and new to the business
- Find out how his first flip made a total profit of $65,000
- Where he found his money partners and how he got them on board with him
- What key points need to be covered in a Joint Venture agreement when flipping
Kevin’s first deal generated a total profit of about $65,000! Not bad for any deal, let alone a first rehab deal.
Kevin didn’t have the money to buy the house and fix it up so he teamed up with another investor to fund the deal with an agreement to split the profit 50/50. Not bad all, especially considering he didn’t have any of his own money in the deal…meaning no risk!
The numbers for that first deal are as follows (rough figures):
Repairs: $75k (taking 4 months to fix)
Sold in 1 day for $295k
Netting about $65k profit that he split with his JV partner
He found his first JV partner that put up the money for the first deal and several deals after that from his craigslist ad.
Kevin also shared some of the key points from the joint venture contract he was using. It’s important to make sure that any unknowns are covered and thought through before partnering with somebody.
Make sure to get competent legal advice for the joint venture contract from a local attorney. The agreement should contain things to cover what happens if more money than was anticipated for the rehab is needed, how profits (and losses if that happens) will be split, and any other details for who is supposed to what in the partnership.
It’s also important to specify that the partnership is just for the single deal and not future deals. This is important because you don’t want them saying you guys have a business partnership where they want a piece of all of your future deals.
Kevin shares how a sign he put in the yard of the house he was rehabbing generated a call that became his second deal.
He was very generous in the episode and gave a lot of great information and tips. You don’t have to start real estate investing by wholesaling. You can do what Kevin did and partner with people that can put up the money.
Find out more about how to do that by listening to this incredible episode.
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The post Episode 8: How a 19 Year Old Got Funding For His First Deals w/Kevin Ramirez appeared first on Flipping Junkie.