All Forum Posts by: Emil Degan
Emil Degan has started 1 posts and replied 2 times.
Post: How to structure a flip with a partner through an LLC
- Los Angeles, CA.
- Posts 2
- Votes 0
@Eamonn McElroy Thanks for responding,
I guess what I'm asking is there something clearly wrong or an obvious thing we should do differently with our current plan before we commit to it or does it seem like a reasonable structure/approach?
- The home is 260k
- He put down 26k down payment and has spent about 4k in A&E already
- I would pay him person to person about 15k to get the ball rolling
- He would have the title of the home transferred to the LLC.
-We would both put an equal amount of cash as needed into the LLC account and use that money for the construction cost (This will be between 200-300k total split evenly)
-When we sell the home (estimated 850k) we pay the remaining loan, and pay ourselves out the full the profit 50/50
Post: How to structure a flip with a partner through an LLC
- Los Angeles, CA.
- Posts 2
- Votes 0
Hello I'm sorry if this has been asked before but I haven't seen anything on my specific case.
Me and another GC friend of mine want to flip a house together. He already purchased the home a few months ago and the title is currently in his own name.
-He approached me to do the flip together and split profits 50/50
-We opened a LLC together 50/50 partners
What is the correct way for me to reimburse his down payment and transfer title to the LLC?
Do I write him a personal check for 50% of his down-payment, then he goes and transfers title to the LLC?
What is the correct way to do this with the best tax benefits?
Sorry if this seems obvious, I'm not a financial expert and just want to be sure we do this in the least confusing and most tax beneficial way.
Thank you for your help!