Taking Silent Investors and HML

[Charles Rogers]

Hellooooo Everybody!

I have a question on how everyone sets up their flips. I'm currently doing approx 4 flips a year, but want to get that to 12+ a year. I currently take a HML to 70-75% LTC and 62.5% LTV (ARV) and funding the rest of the equity myself. In order to grow to the next level, I want to bring on friends and family to reduce the amount of equity I have in the deal. How do you typically structure your deals when doing this?

More importantly, are your HMLs okay with this structure? Are they okay with you bringing in other investors after the HML is closed? I'd retain 50%+ of the required equity.

**For clarity, properties move so fast its easier for me to lock up the deal and secure the financing prior to bringing in a partner***

Thanks!!