All Forum Posts by: Arin Failing

J Scott, thank you so much for the reply. I'm taking this immediately to my GC, and we'll figure exactly what goes where. You've brought up some extremely important points that must be addressed before moving forward. We had discussed drafting an operating agreement, which would address some of the questions, but it was thought that everything (from workload to profits) would be drafted up as a 50/50 split. That doesn't sound fair, at all, to my GC.

No, we'd jump in to Fix and Flip by buying a home, renovating, then flipping. My partner is the GC, but I'm just as handy with construction (he just does it professionally, currently). 

The plan is to take on 99% (if not a full 100) of the labor, on our own. We'd only be looking for a loan (route 1: family money, route 2: hard money lender, route 3: bank loan) to get up and running. We each have equity built up from our own houses; neither of us have a lot of cash (again, looking to get started w/ family money); no stocks; and I do have some retirement (my partner does not).

I guess what I meant by my statement of having $10,000 in tools was that it won't need to be built into our startup costs (loan), as heavily, as we already own them.

During my first meeting with my partner, liabilities and assets came up, pretty quickly. -With a fix and flip business, would we generally have a higher liabilities/assets turnover, than a traditional small business? Other than purchasing a work truck (if it wasn't paid for, outright), I would think each home would be the liability, then the asset, and that's it. We have about $10,000 worth of tools, already, as my partner is already working for someone who does home renovations. So we will have very few tools we would still need to buy. -What is a realistic timeframe to "break even", then eventually be purchasing our own homes, without investors? I know that will likely be dependent on different factors (how many homes we flip, and how quickly, what liabilities we take on, what we decide our salaries to be, etc). -How did you decide to license your business(es)? Why? We are seeing that it may be better, for tax purposes, to have two businesses (construction/reno and real estate). Those are a few, right off the bat. What do you guys think?

I am looking to get started into flipping within the next couple of months, but I'm green - as green as they come. My partner is the general contractor, and I'm the brain - both of whom can take on a lot of responsibilities efficiently and pay attention to the smallest of details. What I need is to sit down with someone real (I've been Googling so much, I think my eyes have dried out) and ask the questions that will make me look stupid, but will get me on the right path. Is there anyone in the area (I live in Orting, but I'm extremely mobile) who would like to meet up within the next few weeks? I'm generally available Thursday's, Saturday's and Sunday's.

I'm a greenhorn house flipper, with absolutely no experience, at all. Being very handy and extremely comfortable with numbers, and having a connections in construction, design, electrical, HVAC and plumbing, I think I may have the building blocks to make a legitimate go of the flipping business. I'm not looking to rent out, at this time - I'm looking to sell flipped homes. I'm still doing the groundwork research, and reading up on how-to's, so we'll see just how much I can soak up.