All Forum Posts by: Jake Silcott

Thank you @Tara Hall and @Brian Kraft

@Bill S., good points, and thanks for the insight. Yes, I have made it clear that I have work for them right now (JV agreement) and I haven't really asked the "are you taking new clients" question. So far most just don't respond, or perhaps are taking a very long time to respond. I suppose there is a lot of business to be had these days. Contacted a few more this morning.

@John Jenkins, thanks for the recommendation.

Can anyone recommend a good RE attorney in the Denver area? Maybe someone on the "affordable" (not necessarily cheap) side. I've combed the forums and contacted several of the previous recommendations, Parham, Goldberg, Hatch etc, but am not having much luck finding someone currently accepting clients. Thanks!

Great.  Thanks a bunch @Tom Spaeth. This has been extremely helpful. Let me know if I can ever do anything to help ya out.

The investor is a close family friend of my business partner so we'll see how comfortable she is with 1, but we'll give her all these options. Thanks again.

Also, would we just submit statements of expenses to title for fix up etc and then have them calculate the payouts?

Thank you @Tom Spaeth! Yes, that makes perfect sense. Would I have the title co draw up the note when we buy? Thanks again.

Thanks for chiming in @Steven Hamilton II and @Micki M.. It's been really hard finding the answer for some reason. After reading a what seems like a million forum posts and articles in the last few days it seems that a JV is the best choice. I've contacted an attorney about it and will update this topic when I find out more. I'd still like to hear what others here on BP think as well.

Hi everyone, I'm reposting in this forum as I may have had this question in the wrong forum yesterday. I searched the site for an answer on this and found some conflicting info. Looking for a little clarification.

My business partner and I will be working with a new equity investor who will fund the purchase and rehab of flip projects in Denver, Colorado for a percentage of the profits when we sell. We have the deal terms worked out. I'm trying to determine the best way to structure the arrangement from a legal/entity perspective.

It seems like the 2 best options are...

1) Option 1: We form an LLC with our investor. When we purchase a property she wires funds directly to the title co. Deed of trust in her name. Promissory note between the LLC and our investor. When we sell she is paid back and profits go to LLC. Does this sound like an effective strategy? How should the fix up funds be handled? Should they be deposited into the LLC bank account and secured by a separate note? What other way could/should the rehab funds be handled?

2) Option 2: We form a JV between our existing LLC and the investor. What would be the benefits or drawbacks to this approach?

3) Option 3: Just have her fund the project without a JV or new LLC. Issue her a 1099 for profits. My confusion here is how to handle the fix up money. Is a separate note typically issued? Also, what type of agreement would we use to spell out the terms of the responsibilities, profit shares, etc?

Thanks for taking the time to read. Please let me know if I can be of service.

Maybe some of my Denver peeps have a little insight?

I searched the site for an answer on this and found some conflicting info. Looking for a little clarification.

My business partner and I will be working with a new equity investor who will fund the purchase and rehab of flip projects for a percentage of the profits when we sell. We have the deal terms worked out. I'm trying to determine the best way to structure the arrangement from a legal/entity perspective. 

It seems like the 2 best options are...

1) Option 1: We form an LLC with our investor. When we purchase a property she wires funds directly to the title co. Deed of trust in her name. Promissory note between the LLC and our investor. When we sell she is paid back and profits go to LLC. Does this sound like an effective strategy? How should the fix up funds be handled? Should they be deposited into the LLC bank account and secured by a separate note? What other way could/should the rehab funds be handled?

2) Option 2: We form a JV between our existing LLC and the investor. What would be the benefits or drawbacks to this approach?

3) Option 3?

Thanks for taking the time to read and reply.