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All Forum Posts by: Drew Burgo

Drew Burgo has started 1 posts and replied 5 times.

Post: partnerships- one guy money other contractor!!!!

Drew BurgoPosted
  • Sicklerville, NJ
  • Posts 5
  • Votes 1

thanx George! I'm 28 years old and money is always on my mind it's my hobbie and so is Buisness. Just trying to figure out another asset in life by working off someone's money being that the renovation end won't cost me as much as the purchase price ideally. I ask questions everyday to people to try and grow knowledge o be successful i appreciate everyone's feedback so far!

Post: partnerships- one guy money other contractor!!!!

Drew BurgoPosted
  • Sicklerville, NJ
  • Posts 5
  • Votes 1

I understand what you are saying. I guess I'm being very cautious because with my plumbing company being a corporation the rules are very strict. My point is I don't want the irs to say at the end of the year where did this "30k" come from originally? I also wanted to kind of be seperate from him in my own way some what just incase but that doesn't seem like an option giving the circumstances.

Post: partnerships- one guy money other contractor!!!!

Drew BurgoPosted
  • Sicklerville, NJ
  • Posts 5
  • Votes 1

this is good! I'm starting to get this process! The big question is how do we not throw a red flag when all the sudden this LLC gets 30k of cash (dollars bills) into the account to purchase the property

Post: partnerships- one guy money other contractor!!!!

Drew BurgoPosted
  • Sicklerville, NJ
  • Posts 5
  • Votes 1

thank you for your input. Does that llc need to hold workmans comp and general liability since you will be pulling permitts under that LLC. Another variable is he has real cash( dollars bills) which somehow we would need to get into the LLC

Post: partnerships- one guy money other contractor!!!!

Drew BurgoPosted
  • Sicklerville, NJ
  • Posts 5
  • Votes 1

as of now i am a partner in a plumbing company with my father. after working for investors on the plumbing and light remodel end i want to venture into the house flipping end. So here is my question, keep and mind i like everything straight forward and all my bases covered. I have a friend who has cash and wants to buy in. my plan is to let him purchase the house and i fund the labor and materials for the renovation. at the end of the day we split the profit 50/50. my plumbing company is a incorporation and i plan on keeping it totally separate from this journey. my plan is to start an LLC and contract the work through the LLC. I plan on floating the materials through a home depot credit card until profit is received. everything will be recorded for materials with receipts this way. i have 10k cash laying around i will slowly deposit into my personal account, then deposit the 10k into the LLC. (paper trails) i can then pay the labor for the property with the cash i deposited through. my plan was to then send an invoice to my friend and get paid at settlement if this possibly. what ever is left goes to him since he is buying the property in his name. should i be on the deed as well? is it better not to have an LLC and do it personally the same way? if i contract the renovation through the LLC do i need to carry workers comp and general liability like my plumbing company. how to i then get the profits from the LLC to me personally? how do we not pay capitol gains since this is our first one and who's know how it will go? what am i missing here in my head i sounds like it will work but i have to be missing something here. he is eager to put an offer in on a property and i think all this needs to be ironed out before we go forward. he also owns another business which is a body shop. i am open to any ideas or insight anyone has! we are located in wonderful new jersey i might add where nothing is easy!