July 17, 2019
Who Do People Partner With to Flip Houses?
If you’re interesting in flipping homes—and what potential real estate investor hasn’t at least entertained the thought?—one of the initial hurdles you may have to surmount is achieving the funding necessary to undertake the task. And in order to manage this, many choose to partner with others.
Of course, the majority of house flippers do not. A recent report by Porch revealed that the vast majority of those who chose to undertake a house flip did so with capital secured exclusively by saving up what they made via their primary source of income.
But, given that the median amount a flipper needed to have on hand was $50,000, there was still a significant number of the flippers Porch interviewed that borrowed from a bank—amounting to about thirty percent of them, in fact.
And most flippers do not choose to go the project itself alone, either. It seems that house flipping is a common undertaking for significant-other teams (which makes sense since it’s the family’s future being put on the line) at a full 45.9 percent of respondents. The next most common partner for a flip is a friend (at 20.5 percent), then a more formal business partner (16.2 percent), followed by another (more distant) family member (13 percent), a parent (10.3 percent), a sibling (at only 8.6 percent), a son or daughter (3.5 percent—which in concert with the “parent” number above clearly indicates that in most cases it was the sons and daughters who were responding to this poll), and lastly a “third-party firm” (matching the “son or daughter” category at 3.5 percent).
What percentage of respondents had chosen to go it alone rather than with a partner? 13 percent.
Perhaps surprisingly, the respondents to this survey did not find themselves at loggerheads with their partners an inordinate amount of the time. 43.5 percent claimed they rarely disagreed with their partners; 3.1 percent said they never did. Only 1.6 percent said they usually disagreed, a scant 0.3 percent said they often disagreed, and just 12.1 percent said they sometimes disagreed. Occasional disagreements, however, did come up 39.1 percent of the time. Most of these disagreements—55.9 percent—were about budgeting.
When you’re flipping a home, you want to be sure your purchase comes with clear title for you to pass to the next buyer, in order to avoid problems at closing. Topouzis & Associates, P.C. is your bulwark against problems of the past. We do title searches and ensure you are gaining clear title to your property—and we back our services with offerings of title insurance (click here), in case someone along the line of ownership did something that will weaken your title at some point in the future.