Project Manager Flip FAQs

Return to Project Manager Flips page

 

Frequently Asked Questions

What’s the typical process, if all goes according to script?

  1. You get a great deal under contract, and submit it to us

  2. We promote the deal to our investors

  3. One of our investors pre-approves the deal

  4. Our investor funds the earnest money deposit

  5. Our investor completes due diligence

  6. Our investor closes escrow

  7. You, as the person who submitted the deal, receive $2,000

  8. You set up and pay for utilities and yard care, and manage the renovation

  9. We sell the property

  10. You get a % of the profit directly from the escrow agent

Does the property have to be under contract before I submit the deal?
Yes, we will not review projects if you are not under contract.   We encourage you to base your offers on our calculator, to see if the numbers will work before you make offers.

How do I make offers?
If the seller WILL allow you to assign the contract, then…

  • List yourself or your company as the buyer on the purchase agreement followed by the words “and/or assigns”.  When we green light your deal you’ll simply assign the contract to us.

If the seller WILL NOT allow you to assign the contract (ie bank owned), then…

  • You must make your offers in the name of a brand new llc that has never transacted any business.  When we green light your deal we’ll purchase your llc from you before the close of escrow (thus the right to purchase the property), and we’ll compensate you for your reasonable cost to establish the llc.

Do you pay for earnest money deposits?
Yes, however we do not fund the earnest money deposit until after we’ve green lighted the deal.  It could take 5 or more days for the funds to be wired so if you are concerned that the deposit must get in promptly we recommend you fund the deposit on your own and we will reimburse you once we take control of the deal.

Do you provide proof of funds that I can make offers with?
No, you must be able to provide your own proof of funds.

How am I protected?
After we green light your deal we’ll provide you with an Independent Contractor Agreement.  The agreement essentially provides that you will manage the property and renovations until it is sold, and in exchange we will give you your share of the profit.  If you submit the deal you are protected under Renovation Funders’ obligation to pay you a $2,000 deal source fee upon the closing.

Can you provide me a copy of the independent contractor agreement for review?
No, it is a proprietary document, so we send that out only after we have approved one of your deals.

What are my obligations?
You’ll be responsible for setting up and paying for utilities and yard maintenance at the property.  You’ll also be responsible for managing property, and the scope and quality of the renovations, and delivering results on a timely basis.

I am not local to the property.  Can I use partners to manage the property and the renovations?
Yes, as long as we approve of your partners and their performance.

Can I pick the realtor who will list the property for resale?
You can recommend one, however, our in house broker will officially refer the agent to us.

Will you need to approve the contractor and the bids for the renovation?
Yes, we are the owners so all the risk is ours.  We’ll need to approve on all service providers and the Realtor.

Typically when a wholesaler assigns a contract they collect and assignment fee.  Will you allow that?
Yes, provided you are the person who submitted the deal to us we pay you a $2,000 fee upon closing.

If a wholesaler has the property under  contract (not me) and will be assigning the contract, do I (Project Manager) sign the assignment agreement or does your company sign the assignment agreement?
The way it works is you (or they) assign the deal to us contingent upon our satisfactory due diligence.  We will not look at a project until the assignor agrees to this in writing.  We then have 7 days for due diligence before we are required to return the fully signed assignment agreement to the assigning party or the assigning party may cancel at their option.  Thus, the assigning party can look for other parties to assign to while we are doing due diligence, just in case we take a pass.  Keep in mind, if the wholesaler submits the deal we pay them, not you, the $2,000 deal source fee.  In the “comments” section have wholesaler provide your contact info and mention that you will be acting as the Project Manager.

What kind of properties work?
Single family properties that you are under contract to purchase, good neighborhoods, $150k – $1 million after repaired value.

What part of the country works?
Any US metro area.  Nothing too remote.

How long will it take to get a pre-qualification?
We shoot for 3 business days or less.

How long will it take to get an approval?
We shoot for 7-10 business days.

How fast can you close?
Generally allow about 10-14 days to prove up the deal, secure our investor’s commitment, and arrange the close of escrow.

When am I guaranteed you’ll close on the contract?
We are never obligated to close until after our investor funds the purchase escrow.   That said, it is critical that you in turn do not rely on us closing, as it is not guaranteed. Before you take any risks with your deposits or contracts be sure that you have a reliable back up plan in place, just in case we do not close for any reason.

 

Return to Project Manager Flips page