All Forum Posts by: Brock B.

I have a couple potential investors that have approached me and are willing to loan me money to do a flip or multiple flips.  I'm a Real Estate Broker in Texas and have succesfully flipped homes before using bank money.  I'm probably looking at needing $100,00-$125,000 for a term of no more than 5-6 months.  My question is, what should I propose to the investors in return for lending me money?  Obviously, I'll give them interest on their money, but how much interest should I give? Also, should I give a percentage of the profits also? If so, how much? Any advice is greatly appreciated.  Thank you.  

Ramar, just wondering, but why is 5 your magic number for tax purposes? Thanks again for the response.

Thanks you for the input Al and Ramar. I've already talked to my lawyer about it and he's all about protecting myself and doing it. I am going to LLC eventually, I just really want to know if someone has done this with a financed property and how the bank reacted when they put the property in the LLC. I've read banks don't like this and can cause issues.

I've recently purchased my first rental property (single family). I am financing it through a bank. Should I put this only property I have in an LLC? I plan on purchasing more in the next 12-24 months. Will a bank let my put a property owned by them into an LLC? Does anyone have any experience with this?

Thank you.