Newbie First Residential Purchase

[Cynthia Henderson]

Hello All,

I am a newbie to the Real Estate Investment world.  I have an idea and want to see if it is at all possible.  My Aunt has a home that she is willing to sell to us for the cost of the loan $160k in Compton CA.  The comps in the area are going for $395k to $425k.  We want to take out an equity loan on that house to buy another house outside CA and flip.  There is a possibility that the same Aunt would be willing to be our initial investor if we can present a compelling opportunity.  She would provide a private loan and pay for the rehab cost.  In return once the property sells, she would get the loan amount back + 20% of the profits.

My siblings and cousin(her daughter) would like to start an investment company. Is it possible for my aunt to sell the property to an LLC? Let me know what you think of our plan and if it is feasible. I look forward to your input.