Real Estate Developer · Los , Angeles · Member since 2010 · 53 posts · 6 votes
Hey Everyone,
I am partnering up with 2 other people to flip SFH.
There are three of us and we have agreed to a 50/25/25 split with the 50% guy putting the down the down payment.
To set this up legally, how do we need to do this? Will this require a lawyer or a template? When we go to our bank for a loan should we apply as an LLC or individually? Finally, since we plan to fix the house up, we will need capital to purchase the home + construction costs. What kind of loan(s) should we ask our banker for?
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
13y
Billy,
You're a banker, and you're asking us what kind of loan(s) you should get? Are you pulling our string?
If the one guy is putting the down payment, you can use the funds from the other two guys for renovation costs. I guess the other two guys are not putting up any money?
Just be cautious that whoever is putting the down payment has to be the person on the loan. Banks don't loan to LLC's on these types of transactions.