Looking for my first flip and getting set up but want to ask a couple of questions. Searched this site and found info about 3 years old so want to ask again in the event there are changes...
1) For the first flip - Hard money loan or look for a more conventional mortgage ? I have the down payment in cash and funds available to support the re-hab - Suggestions, recommendations questions ?
2) Have an NY s-corp which can be used but also have been reading about using an LLC or a mix of both, yet in reading some members are saying set up an LLC right from the start others are recommending set up the LLC after you have some flips under your belt ?
3) Any current recommendation for a ATTY-CPA in the Charlotte, NC area ? I know they exist but are difficult to find as there are only about 5,000 of them in all of the US. If not open to suggestions for a CPA as well as an Attorney which has experience in the state of North Carolina with house flipping.
Welcome to the BP world and good luck to you in your future endeavors.
1- In regards to financing, I have done deals many ways, they all have their advantages/disadvantages. Conventional mortgages can take a bit more time and have more restrictions, however their rates are much more favorable. I have done some deals off the MLS and used conventional financing, and as long as the property qualifies, they have been ok, and the terms are tough to beat.
Many fix and flip deals however require more work or don't meet the underwriting guidelines of conventional financing. Also, depending on where you are getting your deals, conventional financing may not be appropriate either. For example, we also wholesale deals from time to time, and with this deal with cash buyers who can close quickly, within weeks. Conventional financing would not work in this type of scenario.
2- I would definitely recommend talking with an attorney regarding the goals of your company and the appropriate corporation. We first started as an LLC, we are currently working to change over to an S-corp per attorney recommendations.
3- we are currently searching for a new CPA ourselves, will keep you posted. You can also feel free to let me know if you find any.
Let me know if there is anything I can do to help along the way