Starting in MA

[Andrew Posner]

A friend of mine in Plymouth MA asked a business partner of mine and me to team up with him to do fix and flips in MA. He is a GC without much experience in real estate. We want to make an offer on a house. Should we set up an LLC first, if so which state should we start with (I'm in MD, and our other partner is in NY)? Next, can someone suggest a good title company to work with in that area? Thanks!

[Charlie MacPherson]

Call me when you can - you'll have to look in my profile for contact info.  

I can help from the Realtor perspective and refer you to a good attorney.

First, MA is a 2 contract state. We do a formal written offer, then upon acceptance move to P&S after the home inspection.

Second, we don't use title companies here.  We use attorneys. 

Third, without much experience in real estate, how certain are you of the ARV? That's one of the things I provide for my rehabbers - deep comps.

I know the local market and will adjust for all sorts of non obvious factors.  Flood zones, proximity to busy roads, airstrips, school zones, etc.

I can't give legal advice, but lots of people do LLCs for this kind of thing.  Ask the attorney I'll refer you to.