Let's Partner to FIX N FLIP!
Frequently Asked Questions
​Property Acquisition Without Banks
Q: How does this partnership help me acquire a distressed property without needing a bank loan? A: JSTON Homes provides the property as their contribution to the partnership, eliminating your need to secure financing for the initial purchase.
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Q: Does this mean I avoid the lengthy approval processes associated with traditional mortgages for investment properties?
A: Absolutely. You skip the time-consuming applications, appraisals, and underwriting involved with bank loans.
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Q: Can I start working on a project faster since I don't have to wait for lender approvals?
A: Yes, the partnership structure allows for quicker initiation of the renovation process.
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Q: Am I personally liable for a large mortgage on the distressed property?
A: No, JSTON Homes holds the property, shielding you from that initial debt burden.
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Q: Does this model free up my personal credit lines for other investments?
A: Yes, by not requiring a property loan, your credit remains available for other opportunities.
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Lower Upfront Costs
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Q: Besides avoiding a property down payment, what other upfront costs are minimized for me?
A: You primarily contribute a $1000 earnest deposit, significantly less than typical down payments and closing costs.
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Q: Is the $1000 earnest deposit my only major financial commitment before renovations begin?
A: Yes, this deposit demonstrates your commitment to the project.
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Q: How does this low initial investment compare to the substantial capital required for traditional fix-and-flip projects?
A: It drastically reduces your initial capital outlay, making distressed property renovation more accessible.
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Q: Does this lower financial barrier allow me to participate in more projects simultaneously?
A: Potentially, as your initial capital isn't tied up in securing the property itself.
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Q: Am I protected from unexpected property-related costs that might arise before renovation starts?
A: Since JSTON Homes provides the property, they typically handle any pre-renovation ownership costs.
​Focus on Renovation Expertise
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Q: What is my primary role in this partnership?
A: Your main responsibility is managing all aspects of the renovation, from planning to completion.
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Q: Can I leverage my existing contractor network and skills in this model?
A: Absolutely, your expertise in planning, design, labor, and materials is crucial.
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Q: Does this structure allow me to focus solely on what I do best – the renovation process?
A: Yes, you can concentrate your efforts on transforming the distressed property into a market-ready home.
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Q: Am I in control of the renovation timeline and quality?
A: Yes, you are responsible for ensuring the renovation is completed within six months and meets move-in ready standards.
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Q: How does this differ from traditional scenarios where I might also be heavily involved in property acquisition and financing?
A: This model streamlines your focus to the renovation, removing the complexities of property sourcing and financing.
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Faster Project Cycles and Returns
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Q: The agreement mentions a six-month renovation timeframe. How does this benefit me?
A: A shorter timeline means a quicker path to selling the renovated property and realizing your profit.
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Q: By avoiding lengthy financing and acquisition, can we get to the selling stage faster?
A: Yes, the streamlined process accelerates the entire fix-and-flip cycle.
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Q: How does a faster turnaround impact my potential for repeat business and multiple projects in St. Louis?
A: Quicker profits allow you to reinvest and potentially partner on more projects within a shorter timeframe.
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Q: Does the defined timeframe create a sense of urgency and efficiency in the project?
A: Yes, the six-month window encourages focused and timely execution of the renovation.
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Q: Am I incentivized to complete the renovation efficiently?
A: Absolutely, a faster and well-managed renovation leads to quicker profit sharing.
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Simplified Profit Sharing
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Q: How is the profit divided upon the sale of the renovated property?
A: The net profits from the sale are divided equally (50/50) between JSTON Homes and you, the co-sale partner.
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Q: Is the profit split straightforward and transparent?
A: Yes, a simple 50/50 split of the net profit after all costs and fees.
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Q: Do I need to worry about complex profit-sharing formulas or hidden fees related to the property acquisition?
A: No, the agreement outlines a clear and equal division of the net profit.
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Q: How does this compare to scenarios where I might have to negotiate complex financing terms that impact my profit margin?
A: This model offers a direct and equitable profit-sharing arrangement without the complexities of loan agreements.
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Q: Does the example provided ($70,000 each on a $150,000 sale) illustrate the potential profitability for me?
A: Yes, it demonstrates the significant earning potential based on the market value after renovation.
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Reduced Risk and Shared Responsibility
Q: Since JSTON Homes provides the property, do I share the initial risk associated with its market value?
A: No, JSTON Homes carries the initial risk related to the property's acquisition cost.
Q: How does this partnership mitigate some of the financial risks typically involved in fix-and-flip projects?
A: By eliminating the need for you to finance the property purchase, a significant financial risk is removed.
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Q: Is the responsibility for the project shared in a way that leverages both our strengths?
A: Yes, JSTON Homes provides the asset, and you provide the renovation expertise, creating a balanced partnership.
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Q: Am I solely responsible for all financial aspects of the project?
A: No, the initial property cost is JSTON Homes' contribution, and the net profit is shared.
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Q: How does this shared responsibility foster a collaborative environment?
A: It aligns both parties' interests in a successful renovation and sale.
Access to St. Louis Distressed Market
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Q: Does this partnership provide me with access to distressed properties in the St. Louis market that I might not easily find on my own?
A: Yes, JSTON Homes likely has resources and strategies for identifying suitable distressed properties in the local market.
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Q: Can I leverage JSTON Homes' market knowledge in the St. Louis area?
A: Absolutely, their experience in the local distressed real estate market can be valuable.
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Q: Does this model help me tap into the demand for renovated, move-in ready homes in St. Louis? A: Yes, the goal is to transform distressed properties into desirable turnkey homes for the St. Louis market.
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Q: Am I limited to certain areas within St. Louis for these projects?
A: The specific locations would likely be determined by JSTON Homes' property acquisitions in the St. Louis market.
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Q: Does this partnership streamline the process of finding and acquiring suitable distressed properties in St. Louis for renovation?
A: Yes, JSTON Homes handles the acquisition, allowing you to focus on the renovation aspect within the St. Louis context.
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Simplified Process Compared to Traditional Lending
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Q: How does this co-sale partnership simplify the overall process compared to securing financing, buying, and renovating a property independently in St. Louis?
A: It eliminates the complex and time-consuming steps of loan applications, underwriting, appraisals, and the initial property closing.
Q: Are there fewer administrative hurdles for me to navigate compared to a traditional fix-and-flip financed by a bank?
A: Yes, the partnership agreement likely involves less paperwork and fewer third-party approvals than a bank loan.
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Q: Can I avoid the ongoing reporting and compliance requirements that often come with bank loans?
A: Yes, your primary accountability is to complete the renovation according to the agreement.
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Q: Does this model offer more flexibility than the rigid terms and conditions often associated with traditional mortgages?
A: Potentially, the partnership agreement can be tailored to the specifics of the project.
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Q: Am I free from interest payments and other financing costs associated with traditional loans?
A: Yes, by not borrowing for the property purchase, you avoid these expenses.
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Empowerment and Control
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Q: Does this partnership empower me to utilize my renovation skills without being limited by my access to capital for property acquisition?
A: Absolutely, it allows you to leverage your expertise even if you don't have substantial capital for down payments.
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Q: Do I have significant control over the renovation process, which is where my expertise lies?
A: Yes, you are responsible for all aspects of the renovation.
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Q: Can this model help me build a track record and portfolio in the St. Louis real estate market more easily?
A: By participating in successful co-sale projects, you can establish a positive reputation.
Q: Does this feel like a true partnership where my contributions are valued and rewarded?
A: The 50/50 profit split indicates a fair recognition of your renovation expertise and effort.
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Q: Am I treated as an equal partner in the success of the project?
A: The equal profit sharing suggests a collaborative and equitable relationship.
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Focus on Turnkey Homeowner Market in St. Louis
Q: How does focusing on creating "turnkey homeowner" properties in St. Louis benefit me as the renovator?
A: It targets a specific market segment, potentially leading to quicker sales and better returns for well-renovated homes.
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Q: Does the demand for move-in ready homes in St. Louis make this a viable strategy?
A: Likely, as many buyers prefer to avoid the hassle and expense of immediate renovations.
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Q: By delivering a finished product, are we appealing to a broader range of potential buyers in the St. Louis market?
A: Yes, turnkey homes attract buyers who want immediate occupancy without further work.
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Q: Does this focus on quality, move-in ready renovations enhance my reputation as a reliable partner in St. Louis?
A: Absolutely, consistently delivering high-quality turnkey homes can build trust and lead to more opportunities.
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Q: Am I contributing to improving the housing stock in St. Louis by transforming distressed properties into desirable homes?
A: Yes, this model helps revitalize neighborhoods and provides quality housing options.
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This Q&A highlights the numerous advantages for you, the co-sale partner, in the St. Louis distressed real estate market through this Fix N Flip partnership, particularly emphasizing how it circumvents the need for traditional bank financing and allows you to focus on your renovation expertise for profitable outcomes.