House Flipping - Logistics

3 Replies

All,

 I am getting ready to bid on foreclosed houses with an intention of fixing and flipping. My questions pertain to logistics more than anything else:

- do I need an LLC set up with a funded account beforehand?

- do I need to be pre-approved by a hard money lender before bidding, or are they ready to lend more so based on the potential of the property?

- how do I set up an LLC with an associated bank account, check writing capability, etc.?

 Thanks,

 Dan

- do I need an LLC set up with a funded account beforehand?

Not necessarily, ask your hard-money lender what they require. If you are transferring funds from your own personal account, I don't think this matters. LLC creation is relatively quick and should just be completed right away.

- do I need to be pre-approved by a hard money lender before bidding, or are they ready to lend more so based on the potential of the property?

Being pre-approved and knowing their requirements is smart. You don't want to get stuck with someone who is lending only on the property itself - especially if you have a strong credit profile and good experience.

- how do I set up an LLC with an associated bank account, check writing capability, etc.?

You can google "how to set up an LLC in florida" OR you can talk with a lawyer who specializes in doing this... it will cost more, but may have benefits vs a one-size-fits-all online document. 

Where are you buying and through what source?

thanks for the responses. David, I am buying in St. Pete/Tampa area. 

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