All Forum Posts by: Brett Chien

@Jason D. but let's say I want to put down all of our cash 50k for the property to lower the amount borrowed from the HML, would I be able to do that and borrow the full rehab amount from the HML before starting the rehab to pay the contractor upfront?

@Jason D. I know you pay contractor in draws/phases but I'm unaware of the part where you "request a draw to recover what you've paid in rehab", can you elaborate on this?

@Andrew Postell thanks for the info. I guess what I'm trying to understand/ask is, do HML's typically bundle the purchase of the property and rehab costs into one contract or are these going to be separate loans/transactions ie. 80k-50k (down payment) = 30k, rehab loan= 20k?

Can someone walk me through the process of a typical flip deal via HML assuming:

property: 80k

rehab: 20k

ARV: 150k

cash on hand: 50k

Do I put 50k down first to purchase the property and then get an appraisal for the rehab, borrow 20k (rehab) + remaining 30k from HML?

My partner and I are looking at flipping houses out of state and was wondering if anyone knows/would recommend any local CPAs with RE background or knowledge?

Thanks for the answers all, I should have reworded my question. Is LLC still the best way to shield your primary residence from investment properties being foreclosed?

I'm looking to start REI with a partner and was wondering what is the best way to shield assets from potential foreclosures? Are LLC's still the best way to go? I know that it's difficult to get a bank loan if it's a new business with no credit. If forming LLC:

1. How long would I have to season funds in the LLC bank account?

2. What are the fees like to purchase property as an individual and then transfer to the LLC?

3. Is it still recommended to form LLC in the home state (CA) vs foreign LLC to avoid the hassle of double LLC paperwork, fees, etc.?

I'm also aware of self-directed IRA, but the requirements for non-recourse loans really limits our options in terms of leverage. Not to mention the same withdrawal limitations apply and we'd like to be able to take out the funds when we need them. Thoughts, BP fam?

Great plan! Can I get high res version of the images so I can put on my wall?