Real Estate, Investing, Flipping

House Flipping Part 2: Watch Out for Sharks Like “Partner Driven”

The ads were intriguing, but further research revealed much to be concerned with.

Image courtesy of Midjourney AI, via the prompt “colorful illustration of a cat standing proudly in front of his newly-constructed modern home — ar 2:1 — s 250 — v 6.0”. Note: While I leverage AI for artwork, as I really love playing with Midjourney, I never use AI in my writing.

Before I get into hard-money lending, I thought I’d include a cautionary tale. In Part One, I talked about building out a Google sheet model to analyze flip opportunities. Trust me: Run the numbers of a handful of deals, and you’ll soon learn that it’s tough to find great deals. (If it weren’t, everyone would be flipping houses.)

Thanks to how advertising works these days, it didn’t take long for my search history to alert advertisers that I’m reading up on real estate investing. The ads came at me quickly and in full force.

One such ad caught my eye. It was from a company called Partner Driven. What they offer seemed straightforward to me:

• You identify and show them a deal;
• Assuming it fits their model, they fund it 100% (purchase and renovations);
• You split the profits with them 50/50.

Sure, it’s half the profit versus what you’d make on your own, but it ostensibly also removes all of the physical labor, financing risk, administration, taxes, etc. What’s not intriguing about that?