OfflineI am looking at houses to flip, I have an investor with cash and found another with cash also.
Looking to get this ball rolling. She will buy it cash, (own it) he will finance the rehab cash and I will do all the work. Going to do one at a time to start out and eventually do multiple at a time.
Should the LLC be formed now or can it be done down the road. Not sure how these partners a going to work out for really growing. I want to gain enough cash with the investors and then go on my own with my own money. This is when I thought I would start the LLC.
Anyone have different thoughts on this?
Thanks, James
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Do some deals first (1 or 2) then set up a LLC or a trust. Save your money at first. You should however put it in writting as to what each person job is to be so that there are no misunderstandings down the road. Good luck to you...
Not having a goal is worse than not setting one..
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If you are going to form a partnership with others, please get things in writing. Protect yourself. If you are going to do rehab work, will you be getting paid for your work only or will you take an equity position? You need to have these things fully understood before moving forward.
It can be a great way to make money. However, partnerships can by sticky unless everyone involved knows what to expect. Get it in writing and you are going to be fine.
Roy Voeks
Official RE Coach
It is not necessary to form an LLC until you start putting properties in your own name. I found this out the hard way, forming my LLC here in CA (which is VERY expensive) and wasted a lot of money that I could have hung onto for a while. If you are only wholesaling or doing L/Os, you can make money, but nothing ever goes into your name.
As far as doing the rehabbing--if you are employing other people, you may want to check with your atty to determine liability in that way and what structures you may need. I know nothing about that.
Also, make sure an LLC is the best way to go. I have also found out that, for me, an S Corp would be better.
Good luck!
Karen
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Thanks you guys!
can you expand on what you mean by nothing goes into your name when you do wholesaling and lease options. Can't you still be liable?
Also why is an S corp good for you? Curious? Thanks! Tammy
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https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
not sure what state you're in- you may want to fill out some info on your profile- but in some states forming a LLC is quite simple and inexpensive, and it will keep things straight and legal between you and your partners; especially if you've never done any deals with them...
Also, you can get free advice on LLCs and Corps at Legal Zoom...
Valerie
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