Need Investor Advice

[Colton Hamilton]

BP,

Hello All!

I getting into flipping houses and I am stuck on what path to take financially. I have my father-in-law willing to invest in me and my partner but I don't know how to go about it for it to be the most beneficial to the both of us. 

A) He is willing to take on the bank loan in his name for the the first couple properties. 

B) He has 10k cash that he is willing to invest right away

C) He also is willing to invest 1k a month 

I want to be able to set up something that is hands on for me and "hands off" for him. 

I want to set it up in a way where he can still earn interest on his money that he is investing while it is sitting there not being used although that obviously isn't that ideal situation. 

I am curious as if I would need to create an LLC or if I can do it privately. What kind of tax implications could that cause? How would the profits work/be taxed?

Who should I be reaching out to as far as an expert? 

My head is exploding trying to move on this fast as I want to do this full time and I want to get a strong foundation in place before I move on from my W2 job. 

Thanks in advance for any and all replies

[Riley Hancock]

@Colton Hamilton

My only thought on this is, I never like anyone holding any thing over my head. My situation is very similar, my in laws are set and don’t need a return at all, but at any rate, I give them back a 7%

It’s better then anyone else is gonna lend me, and at least they are making better then putting their money into something else safe.

It could very likely be stupid pride, but my idea is to do this a few times then, after “proving my self” I’m gonna hit them with a lower percentage. Say 5% until I get my own cash out right.

Let’s be honest, they are most likely putting all this dough in an account for their grand child any ways, but like I said, I want it to be beneficial for everyone, you never know what they might hold over your head down the road, and all in all it should only be an extra few thousand most loans right ?