Hello. Back in 2013 I bought a distressed house in the right neighborhood and while living in it I used my money from my job to fix it up and 5 years later sold it for triple what I paid for it. I was a good carpenter when I bought it and now I’m an expert in almost all trades. It was a big house and it needed everything. I took the proceeds and put it down on a much nicer house in a much nicer area. Once again, needs some updating and will be worth a lot more than what I paid for it.
Well now they have cut all of our overtime so my current house has been put on hold and I approached a coworker of mine who is equally skilled about throwing in and flipping houses on the side. He said yes without any hesitation.
A person I used to build decks for was and still is flipping houses full time. I approached him about kind of managing our first flip to make sure we done get ourselves in trouble. He’s also a licensed realtor so I’m figuring he’d definitely get the sale and some of the profit for overseeing the project.
He directed me to a company that he uses all the time and they purchase distressed homes and sell them to flippers. They also provide the financing and construction costs to get the place ready to be sold. I haven’t sat down with them yet but from their website that’s pretty much what I’m gathering.
I have successfully acquired a HELOC for more than enough money that I'll need so my capital is set. I also own a 2 family that's been running like a clock since I bought it but I'm going to leave that out of this and besides, there's not nearly as much equity in that one.
I think I have most of this figured out except for the legal end of it. My potential partner wants to sit down with these people before he fully commits. Will we need a joint LLC or separate LLC's or none at all ? This is where I'm at. I fully plan on getting into this with or without a partner so any input would be huge. If you read this whole post, thanks.