Multiple partners combining to make cash offer on flip

[Rob Pasche]

Like the title says, myself and 4 others are combining money to purchase a house and rehab with straight cash. We will all be contributing unequal amounts but since I'm doing all the work, they've agreed I will get a larger percentage of profit than my contribution percentage.

This should be an LLC with written agreements I understand, but how can I have the funds ready to buy a house with cash before knowing what the house is going to cost to purchase and rehab? I guess I'm confused by the order that things occur. Is this the correct course of action?

1. Create LLC

2. Create Bank Account under LLC

3. Everyone transfers their investments into LLC Bank account

4. Find house to flip

5. Make cash offer on house?

I feel like I'd rather wait until I find a house before pooling funds bc it could take a couple months and I'd hate for everyone's money to be sitting there not being utilized.

Thanks guys, I hate red tape and just want to get to the deals!

Rob