My dad will invest if my sisters work together to start a company

[Alex Schar]

My dad wants my 2 younger sister and I to work together to start a real estate company, he says he wants us to start with 2 flips then we can do what we want with that money. Any advice? I find my sisters immature, pretty nervous to work with them. I’m more interested in rental, but we’ll need money from somewhere, how should we start, do we need a contract? How do we find a mentor? I know little about real-estate from bigger pockets but they know nothing, just that they’re interested in real-estate

[Dan M.]

There is alot to consider and there are alot of unanswered questions. By starting a company do you mean starting an LLC? You can structure the ownership so if you are doing all the work and they are just getting a paycheck that maybe they are only entitled to a certain percentage of the equity so it is fair for all parties. I think you would really have to sort out the details of the ownership and who does what first.

As far as finding a flip a general rule is to find a house where its ARV ( After repair value ) is 70% of the total money invested so you will profit on the other 30%. This number can vary and is market dependent but you can find a bunch of great articles and real examples of what people did on the forums.

I would start by immersing yourself in the lingo and understanding the terms of real estate and start analyzing properties to see if you know what a good deal is or what isn't a good deal. Everything is for sale, everything is negotiable, but before even getting to that point know what it is you would even pursue verse what would not be a good candidate for what you are trying to do. 

Is your father going to finance the entire deal and let the profits then be used for reinvestment?