Updated about 1 year ago on . Most recent reply

Private Investor for Flipping business
I am looking to scale my house flipping business.
I have someone who I want to pitch to be a private investor and fund a flip from start to finish.
Wondering if anyone has experience doing this and would like to offer some advice.
Also looking for any recommendations as far as how to ideally structure the funding for the deal.
Thank you
Most Popular Reply

Put them on as a minority member of your business entity/ LLC and you'll have no problem using their funds with just about any lenders. Some Lenders do take issue with "gift funds" or other liquidity provided by partners who are not on the Operating Agreement. Also, be sure to clearly outline the agreement you have with your investor in a signed document so that there is no confusion on the back end.