All Forum Posts by: Patricio P.

 Why not both? And maybe more pockets as well!

 I would recommend that you start off by reading the Ultimate Beginners Guide that was put together by BP. Here is the link: https://www.biggerpockets.com/ultimatebeginnersgui...

Chapter 4 as an investment business plan section which will be very helpful. Here are some of the items that you would want to consider for your business plan:

Mission Statement

Goals

Strategy

Time Frame

Market

Criteria

Flexibility

Financing Deals

How Deals Are Done

Teams & Systems

Exit Strategy/Backup Plan

Example Deals

Financials

@Andrew Besecker There are a couple of different questions here.

In terms of banking, you can open an account in the name of your company and have the two of you as signatories on the account. The requirements vary from bank to bank so check with your local bank, credit union, or big bank chain.

For financing there are many options. You can go the traditional mortgage route, get a portfolio loan from a small bank, do a Joint Venture (JV) with a cash investor and split the profits, borrow private money from friends and family, or go the Hard Money Lender (HML) route. They all have their advantages and disadvantages and which one makes the most sense will depend on your goals.

There are plenty of deals within a 1-2 hour drive from Fremont. You can look into everything from the suburbs of Sacramento to Watsonville to Benicia. The point is you have to do some research and find the target area you want to invest in. I suggest starting with your investment goals and doing some research and networking to get started.

How much you leverage if at all is a product of many factors including risk tolerance, tax implications, personal preference, and investment goals. I don't think there is a one size fits all though many people may see it that way. Just my two cents.

@Chris Cleveland You probably already know this but when you get the template you are looking for, please make sure you run it by a lawyer that is experienced in real estate. It is especially important when dealing with family that everyone is on the same page and there is a clear understanding of what happens if things go wrong. You also want to make sure the contract is legal and follow the letter of the law in your state.

@Percy N. I imagine the way you would analyze this type of deal would be a little different since you are taking out the cost of borrowed funds and replacing it with opportunity cost. With an all cash purchase it will always cash flow, what metrics do you use to determine whether or not its a great deal?

J Scott has an excellent book on flipping. I'm reading it myself and I'm on the last chapter. He also has a book on estimating rehabbing costs. You can pick up both from the site or on online retailers like Amazon. 

@Account Closed Are you under the assumption that when you start an LLC you must hire someone? That's not how it works. You simply hire someone if there is a need for their services and you don't if there is not.

What kind of employee do you need for your LLC and why?

Congrats on taking action! How are you searching for leads? Is it primarily marketing, wholesalers, or investor friendly real estate agents?