Initial Partnership Funding

[Aaron Litzenberg]

Hello, BP!

My partner and I are researching and putting together plans to become REIs.  I think our plan will be to start by doing a couple of flips to build capital and then incorporate rentals to build wealth.

Our initial funding "problem" is that we both have families, primary residences, and minimal cash.  We are wondering if we could ask the BP community for ideas and advice on securing purchase, rehab, and misc funds.

We were thinking of establishing an LLC, but I think we'll postpone that until we have some working capital to avoid additional credit issues.

I believe we both have 750+ credit scores, modest 401k/403bs, and modest home equity. Since living in the property is almost certainly out of the question, I believe FHA and 203ks are off the table.

Would the best plan be to go after a traditional mortgage as co-applicants for the purchase and then HML/private/other form of credit for rehab costs? I don't know if we'd be able to avoid PMI, but hopefully we could plan around that cutting too deeply into margins.

Thanks in advance!!

[Jay Hinrichs]

your melding a lot of different things together..  little money and being RE investors is pretty tough.

If I was you I would ifnd a money partner first and foremost