(Chicago- Flip SFH or buy multifamily with LLC, hard $ or own/occ

[Camille Jackson]

Hi BP

I'm new to the forum, but definitely plan on being around for quite a while!  I love it!

I'm looking to form a REI LLC with my mom (she and I are in Chicago) and brother (works full time in California). My mother (retired in Chicago) owns a 3 unit and her SFH. The 3 unit needs some repair work, It would get more rent and their are new construction and rehabs in the area. We're trying to find the best way to use what we already have property wise to start smart investing and also provide full time income to my brother and myself.

!. After I form the LLC, can the business get hard or private money to purchase/rehab the property? Then refinance? Does it matter that one of the members of the LLC is the one selling to the company?

2. After I form the LLC, get hard or private money to flip a few SFH , to money for the business to then buy 6-12 unit apartment

3. After I form the LLC, get hard or private money to buy/hold 6-12 unit apartments, use cash flow to purchase SFH to flip

4. Get money for both my brother and I to purchase up to 4 unit owner occupied, then later sell them to the LLC

Any help/advice would be greatly appreciated.  I just don't know which route makes the most sense, most time efficient and gets us started soonest.

[Jim Gramata]

I think you're on the right track to renovate what you have already to maximize the existing investment. Don't over improve. Then once that is stable you pull equity money on a refi and use that for your next investment. Then the cycle continues. Talk to a lender with the three of your financials before to be sure the exit plan will fly. 

I can't talk too specifically about the LLC details. That would be a RE attorney in the area to be sure you don't get bad advice

Best of luck!