All Forum Posts by: Elliot Tan

 Got it. Thanks Adam for clearing up some of the murkiness in why what we had planned to do would have been such a big problem! We'll be sure to reach out to a title company to help us with the process. 

I had posted in the Dallas forums, so thought only people I'm the Dallas market would be seeing it. But next time I'll be sure to include what state. 

Thanks again for your input!

 Thanks @Matt Buroni!  Appreciate the advice.  Looks like there's a theme here......I need to start finding a RE attorney!

Thanks for the response @Emily Ford!  You definitely cleared up somethings for me. Would you mind sharing with me your RE attorney, and title company?  We are still in the process of making these relationships.  Again, appreciate your help in answering my questions in this matter.

Oh man.  That is good to know! We are definitely trying to not get in trouble!  I appreciate you warning us of the trouble we could get into! Would you have anyone that you would recommend we talk to that could help us sort all this out Rick?

Hi everybody! 

My partners and I are starting a REI company. We will be flipping and purchasing rental units. Goal is to slowly scale into medium-sized multi-family apartments. Our strategy for funding is to find private money lenders to fund our flips and rental units, then cash-out refinance the rental units in order to pay back our private money lenders (BRRRR). We are starting out with our immediate circle (ie friends and family). Then as we get better at the REI game, we will look to expand our network of PM lenders as we do bigger and bigger deals.

I have several questions in regards to the rules and regulations of receiving funds for a private money loan.  I haven't been able to find any concrete answers to several of my questions.  So I've come to you all for help!

1. What's the difference between syndication and private money borrowing?  I can't seem to find a straight answer comparing the two.  From all the podcasts and articles/books I've read, I get the feeling there is a difference.  Just not sure WHAT the differences are, and WHY I need to differentiate between the two.

2. Can I simply receive funds from a private money lender transferred directly into our business bank account? What is the typical route we would take when it is time to receive the funds in order to purchase our deals?

3. We plan on using a promissory note from here: https://eforms.com/promissory-... . Is this good enough, or do we need something more? What other documents would we need in order to protect our lenders and ourselves?

4. Here is an example scenario: we find a property for $100,000 that we intend to flip.  Rehab will be $20,000.  We cannot find 1 individual to loan us $120K.  But we are able to find 6 friends/family to loan us $20,000 each.  Is it legal to create a promissory note with each individual, then pool all that money to fund our flip?  If it is legal........how do we then get that money to the seller, closing attorney, agent, contractors, etc...in order to successfully complete the flip?

I understand the CONCEPT of private money lending.  But the MECHANICS of it all is where I'm coming up short in understanding.  Thanks so much for taking the time to read my questions!  My partners and I will appreciate any and all advice given in regards to private money lending! Take care.

Thanks @Cindy Carriger!  Unfortunately I was not able to make it to the live session.  Hopefully I can watch it soon though.  I'll be sure to watch out for future opportunities to join a meeting.  Thanks again for you help!

 Thanks Cindy! I'll be sure to check you guys out when we move to Dallas. But since you're club offers online meet up capabilities I'm sure I'll "be there" at a meeting sometime soon. Thanks again for sharing

 Good to know! I'll ask again here for bank references. Thanks Andrew!

Thank you @Andrew Syrios @Cindy Carriger!  That was great advice and advice that I will be putting into action! Appreciate you taking the time to help out a newbie!

It seems though that I did not phrase my specific question well enough though (thankful I did because I got great input for other questions I did have!). I originally came to the forums to ask where we should store the money we make from our company and what type of bank accounts are best for getting started. When we are purchasing properties, we want the money to flow through a bank account correct? Sellers usually don't expect duffle bags of cash right 😊? And then when we make a profit, we'd like to store those profits somewhere. As well as paying off our loans when we are able to get financing through our LLC.

My partners and I are looking to set up a business bank account, and we were simply looking for advice on what type of banks to look for as we search for what's best for our company.  

Hi everybody! My partners and I are starting a RE investing company in the DFW area. We will be doing flips and buy and hold investing, with plans to scale to mid-size apartment complexes. We're in the baby stages of this and haven't come across much information concerning what type of bank account to open for our company!

We will create an LLC this year, and were wondering what type of bank account to open for this company? Would a typical small business account suffice? Is a big bank or smaller bank better for what we are trying to do? Any recommendations for banks in the DFW area that service small businesses like what we are going to start?

Would LOVE to hear about anyone's experience in starting an LLC with partners and what you all did well, and not so well, in the beginning! And any tips and advice in regards to banking would be much appreciated! Thanks to those who take the time to read this post!