All Forum Posts by: Carlton B.

 30 Day Stay https://store.biggerpockets.com/products/30-day-stay

I agree with @Andy Sabisch you are not design a house for yourself it is to sell and should be want is in demand. However I love some good tech and David Greene mentioned this AI design software https://www.reimaginehome.ai/ I'm not sure if it is worth the learning curve but it does look like fun.

I do not think it is worth trying to find wholesalers in my experience they are not matching the the big box stores for price. While there is drawbacks with big box stores your contractors are familiar with them and they will be open late and on Sundays. They also provide decent perks, sales, and credit cards. 

Finishes and fixtures I will purchase to control the look and feel of the property. For rough work like electrical, plumbing, and drywall they purchase. Like @Nicholas Davaul stated it depends. 

@Cristina Rodriguez I like post that get to the details of real estate deals. I just posted on this forum a similar situation, but I'm the borrower. Understanding how the lending should be structured and the actual handling of funds is unclear to me. To your point transparency is a must when doing these deals you need all the information so you can make good decisions. Not just comps, pictures, and ARVs but also the structure and expectations of the loan. To your question we paid about 10k in fees and closing cost with 10% down and 15% interest only payments using hard money.

@Jeff S. Thanks for the response I would like to think I'm not a rookie any more but this is the first I'm hearing the term lending lawyer. I will ask around my circle of investor and see If I can find one to sit down with and work this out. 

Thanks Alan I thought maybe I worded the post poorly. Anyway JV Joint Venture is one of those terms you hear alot but is rarely explained in detail. I'm going to do some research today on JVs and craft a well worded email to my accountant today.

Securing hard money loans for flips has become more and more expensive. So I'm exploring the option of involving family members as investors in my next flip, borrowing funds from them at a 10% interest rate, resulting in approximately $1,000 monthly payments.

To simplify this arrangement, we are contemplating the creation of an LLC that includes the lenders. Should we establish a dedicated LLC bank account for managing funds and property matters? Additionally, what's the best approach for disbursing funds and handling tax-related matters? Do I have this approach wrong is there a better way? A step-by-step guide would be immensely helpful. Thank you in advance for advise.

I'm interested in involving a couple of family members as investors in my next fip. I think the best way will be to borrow the money and pay them interest monthly like a hard money loan. So, they put 100,000 in at 10% paying them 1000 monthly. To accomplish this, we start an LLC with the lenders and myself. This seems pretty straight forward or did I get that wrong. Some question I have is banking do we open a bank account under the LLC deposit money there then purchase and rehab from that account? Who signs paper work to controls the bank account and mortgage. How do I disperse funds to lenders? Do lenders get 1099's? Is the tax burden split evenly? It would be great if there was a step by step. - Thanks

Great question and I'm going to take some time and review our deals. The hardest thing is every deal is different. You can structure somethings but there are alway unforeseen issues and you just have to be prepared to adjust. if i had to pick one thing it would be budgeting. With covid, inflation, and rising interest rates who knows what you need to spend or save. thats my two cents.

 They had a pre-qualification letter from a Credit Union I checked them out and they look legitimate. They have a branch not far from my home.