Hola Bigger Pockets Community!
I wanted to see if I could get some advice from people that have been through the trenches.
Brief Summary: My wife and I have been very interested in getting into real estate investing. My brother-n-law and his wife also are very interested. After talking for the couple weeks, we decided that we want to give it a shot all together. We feel we will make a good team: I'm in project management for a general contractor; brother-n-law is a superintendent for a general contractor; sister-n-law is a real estate agent; and my wife is a photographer/marketer. We are planning investing in the Southern Oregon market. Our initial main interested is rehabbing to flip. Our goal is to purchase, rehab, and flip one home in 2018.
Questions / Concerns:
1. Trying to do a little homework has further confused me on a few topics. First, we all plan to play active roles in the process and at first it seem to be a no brainer to create an LLC; however, the financing seems to be an issue due to the initial lack of assets obtained by the company. None of us have a ton of assets to begin with, but I figure our incomes will help us qualify for a loan. I just wasn't sure if an LLC is created, can you utilize your personal income for a loan amongst 2 married couples? Does anyone have any advise as the first move we should make on our first flip?
2. What is the most appropriate way to finance a house when 2 couples are partnered? Should utilize a bank, or seek out a private lender?
I'm just trying to put some pieces together to better understand how we want to operate. Thanks in advance for anyone that decides to help by submitting a response!!
Due to the nature of fix & flips this might be a very hard question to weight in on. There are surely good answers for you, but it depends a lot on your time frames among other things. Maybe someone else can chime in. Stick with it- it's a great goal!
I'm curious how you landed on the decision to do your first investment in Southern Oregon. I'm not seeing a lot of room in equity here in Southern Oregon and the market is very saturated with investors, but do think the further North you go you'd have more options. As Grant said, there are Many factors to consider. Feel free to message me directly. Best of luck.
I dont have specific answers but I have some general advice on how to learn more about investing.
1) Stick here on BP and ask any questions you have.
2) Make sure your personal finances are together so you have as much capital available.
3) Post your questions seperately in different forums. You will most likely get more responses if you break up this post and put it into the loan/finance (something like that) forum section and the legal or LLC questions subforum.
Best of luck, you sound secure with alot of people wanting to go in on a deal with you which is great!
By southern Oregon maybe you want to practice over in K falls were its not as competitive and price points are very low that way if you make a small boo boo its not amplified.
you will be dealing with HML .. you will not get a bank to loan you money on a spec fix and flip based on your description..
And when you go to look for said HML remember in Oreogn one MUST be licensed don't fall for the out of state guys that are not licensed.. and also don't fall for the come on teaser interest rates that are not real.. most of those guys are scammers out to take your 500 dollar app fee.
@Kami Carlson who is strong in Rogue valley in the HML space. ??? I think Lending home got licensed in Oregon and I think LIma one may have as well. Does Iron Bridge work there ( they are PDX based but I know they work in CA so that might not be a stretch for them)
Welcome to BP. Happy to network and answer with your questions. You need to build a reliable team to assist you all.
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