Learning to Flip Houses

[Derrick Castile]

Hi!

I’m Derrick. I’m wanting to start flipping houses.

My plan is to purchase an LLC in order to get a loan from the bank to start. I know I don't have to go this route but I don't know any private investors to lend the money. Is this a good start?

Also I live the DFW area. [Solicitation Removed by Moderators]

[Will Barnard]

Originally posted by @Bryan Devitt:

Originally posted by @Will Barnard:

Originally posted by @Bryan Devitt:

Unless things are drastically different there than they are here, you can't just get an LLC and get a loan. The LLC needs 2 years of tax returns to prove income to get a loan, just like a self employed person. Have you ever done this with someone else or for someone else? Your best bet is to find a local meet up, find a successful flipper that does what you want to do and ask them for a job or to help them for free to learn the ropes. If you get paid, have the LLC formed and have them pay the LLC for your work and you will get paid through the LLC as a pass through. You might also find people there with cash that are eager to invest and if you know what you're doing you can start instantly. If you don't know what you're doing you can still start, you'll probably just lose money until you learn the right lessons.

That is often true with conventional bank financing but the poster is talking about hard money and private money loans which it is preferred to have an entity.

The poster said he was going to start an LLC to get a bank loan because he didn't know anyone that did hard money

You are correct, thank you for pointing that out, I somehow misread the post and I’m even wearing my reading glasses so I have no excuse.

With that info, @Bryan Devitt is correct, you will have a very difficult time getting a bank loan to your newly formed entity n which case you will need to buy in your personal name and then transfer title to your new entity which will require a few other tasks too. 
There are literally hundreds of hard money lenders out there, you should look into that option or find a money partner.