Denver Colorado business plan pt. 2

[Mike Henderson]

Well I've got my mortgage brokers license and I'm starting to originate FHA loans. I've got a ton of other leads and networking out of this already.

Partially simplified my business plan. I'm in the process of getting my Real Estate license. I've already got two deals locked in the pipe. One for a commercial deal between 300,000-1,000,000. The other is for a residential home around 300K. I've targeted the fix and flip market, I think I want to do one of these myself.

My big question is I think I'm about to buy my first property. I'm looking at it on Tuesday evening for the second time. It's a duplex. I think I can purchase for around 115K and put 10K in repairs. It should rent for about $850 a side being conservative.

Since I'm getting ready to conduct this first transaction and the fact that I have more in my pipeline it's to the point of getting a lawyer and my legal structure set up. I'm 90% sure I'm going to make an offer on Tuesday of next week.

Do I want to set up my LLC to place the deal in there. I've already looked into my insurance situation and I don't think I need to do anything special. I think with just one house I'll just get a NOO policy. I don't see any advantages with a blanket policy until I get three or more properties.

I think I want to set up an LLC and just put this first duplex in it. I'll also be able to run the rent through my LLC to generate the cash flow. I want to do this ASAP so I can apply for, and get a decent business line of credit. It always helps to get credit when you don't need it.

I need advice on what to do with my legal status and situation. I've got the names of 5 different lawyers. One is Bill G., I met him at the Carei meeting. One is a referal from the founder of Your Castle Real Estate. The final three are from a commercial broker that has an awesome network.

What questions should I be asking these guys? Any guidance is appreciated.

P.S. I'm meeting Bill B. next Wednesday to talk to him about becoming one of his mentoring students. I insisted that I talk to him because most of my questions are legal in nature.