All Forum Posts by: Christian Smith

So my friend and I decided to start a side business. We both work in construction. Both of us worked in the union as drywall finishers and now work in management roles. We want to do side work and maybe even eventually get into flips. 

After some research (and help from people on here) I decided to get an LLC. Well that's done. Now I'm looking at bank accounts but after that, I feel like I'm quickly going to be in over my head. I've basically volunteered to be in charge of money and I have no idea what I'm doing. How do we get paid? What percentage should go back into the company? How do I be sure I'm ready for taxes? etc.. So what should I focus on after opening a business account?

@David M. Wow! I would have never expected someone to take the time you did to type all that out. Really appreciate that. Gave me a dang good start on further things to look into. So basically if it's my business and I pay taxes and all, I can't just give him his cut after taxes? 

For the record @Fred Shatzoff @Michael Ablan, we are currently working on financing as well but I'm trying to figure that out on my own. There is a hard money lender in my area who I don't believe requires LLC's but I jumped on here to figure out if I needed an LLC before I tried that route. We have a couple of potential private money lenders but it kinda of sounds like as a partnership, we may need an LLC regardless of it it's required by the lender, correct?

Thanks in advance for clicking into this. Appreciate your time. I'll try and be short but not leave too much out. 

My friend and I work in construction and want to start making some extra cash. He already has some possible deals lined up finishing some basements. We also want to get into flipping. Since there are two of us, do we need an LLC or would it just be easier to put it all under one of us and split the profit?

I guess in my head, the stock market roi is usually around 7% and that's annual. So I was thinking even though it's 10% interest, that is annually and the loan period was only 6 months.

 Ohhhhh ok thanks

I have a friend who is interested in funding my flip. I'm working at figuring out what's fair for both of us but it's making my head hurt. I keep coming up with him only getting like a 6-8% return on his money which seems low but maybe i'm doing something wrong. Can someone please look at my spreadsheet and see what I have wrong. I threw in guestimate numbers so don't judge the flip numbers. Just the percentages and such. Thanks! 

https://docs.google.com/spread...

That's a very good point

That's a solid response and you're right. I haven't nailed down details. Would be way easier to sort through places if I had that so I'll get that done right now. Thanks! 

That's a very good point. I have a general idea of what I want to do but really need to nail down numbers! Appreciate your response! 

1. I have two meetings next week and maybe a third. 
2. I listen to bigger pockets a lot throughout the day and keep trying to google and youtube as much stuff as I can. I'm a big research nut but I'm trying to not get stuck here. 

But I can always do more and try harder! Part of why I posted this was for exactly that reason. Just getting more people pushing me and throwing wisdom at me so appreciate you taking the time to respond!