First deal with investors
Hello BP Family, I am new to investing but not first timer as well. Have done few flips on my own by now and at a point where I feel like I am prepared to take on bigger projects and invest with a group not just myself.
I am in Southern California
I am teaming up with three other investors for a flip project. This is my first project with investors.
We are getting ready to start submitting offers for properties. Each of us are investing different amount of cash and will be equity partners. We will need to borrow about 30% of the project cost from a lender.
Should I set up corporation or LLC? (I am assuming most responses are going to answer yes and LLC)
California state charges minimum $800 to maintain an LLC is there a way to avoid it?
How can I get the investors to commit the project cash?
How should I handle financial part, meaning, should I open a bank account in LLC or Corp's name now and deposit all cash in there, or can I wait until we get in contract for a property.
I want to know how to structure the deal and do it right.
Thanks for all your help in advance.