setting up our RE investing company & looking for feedback
Today our domain name was locked in and some initial data placed there.
Photos of our sturdy not glamorous rental props will follow next week or so, along with tenant support information.
Props for sale will be shown on this site. We have one money maker for sale now.
More than likely we will post information for folks there who would like to become members in our investing LLC.
We want to form an LLC which will locate REO's for flip at 75% ROI minimally, or hold and rent at 20 - 30% ROI. These are returns we have exceeded previously when investing our own dollars, so we feel confident.
Description of our property LLC -
"It will (in all likelihood) be an LLC with two classes
of members: member-managers and limited-members. So just call it an LLC." (I quote the lawyer partner here)
We will be creating this entity soon (its quick) and put a prospectus together in the next Q which we can present to potential members.
Its my goal to put about 75K of my own cash into the LLC, becoming its member manager, and find a matching 75K from others who wish to be limited members.
What would a reasonable ROI for limited members be? Is there a baseline folks would consider good for a flip or a rental? Do they care if its a flip or a rental at all? Maybe they just want to see their 10-15% and not be bothered?
I would like to set this up as a 12 or 24 month cycle (like a CD) , with the option of closing it earlier (via a sale to cash out) if the returns are there and we can get into the next deals = make more money. To avoid taxes can we do 1031's out of this and into the next deals?
I'm guessing I am missing some issues here so I appreciate your feedback while we continue to flesh out the details of the system.
With appreciation,
Diane Menke