My business is taking off. So many questions !
My friend and I are starting a rental business to help us save up to start flipping houses. While we were at work a doctor overheard us talking and he said he would invest in us so we can start flipping houses now.
Questions:
- how do we go about collecting his money? Is there a legal way to go about it that protects us and him? I don’t want to just take a check. There has to be some way to go through a bank or something right?
- how much should we pay him? I have heard on the podcast to pay investors anywhere between %12-%20. Is that right? Do you pay them per flip? Or do we pay them that percentage at the end of the year?
- for our first flip should we find our own deal or go through a wholesaler?
- any tips on handling this situation professionally? This came un expected and now im trying to learn as much as I can. So any tips are helpful. I dont know what I dont know. So please, give any feedback
Most Popular Reply
@Kyle Neville Hey congrats on the take off! The answer from @Darius Ogloza was great but I had another suggestion as well.
Find a local attorney or a few and ask if they have experience with real estate work like this and partnerships. Spend a few hundred dollars(at most!) and get their professional legal take on the best way to do things for your situation and in your local jurisdiction. I find a one hour consult with a good attorney can answer so many questions. The minute money, partnerships, and structures come into play, I don't mess around with being wrong.