All Forum Posts by: Reed Starkey

Well, if you are still within your "subject to" time on your offer, you have every right to back out of the individual deal.  She shouldn't be able to back out of the other deal because it is a signed contract.  As long as you and your partner follow the closing requirements as per that particular contract, that property will be yours.

The flipper will be hiring a GC to do all the repairs.

Thank you for sharing.  

A local flipper presented me with a house flipping JV opportunity. She already has hard money lined up, but needs me to fund the 20% up front and the rehab costs. She will be handling the contractors, so I will mostly be hands off of this investment, but it is my money in play. I am wondering what percent of the profit should I ask for?

The numbers will look something like this:

Purchase Price           140,000

Rehab Cost                 50,000

ARV 260,000

Thank you.

I loan my LLC all the time. My LLC doesn't have enough money to buy property, so I loan it to the LLC, then pay myself back when I sell the property.

I think 5 is a bit much, but I have done all cash and a subject to financing offer before.  I'd rather do a financed deal as my cash is limited, but if cash gets me the better price it can be worth it.

I am struggling with the ethical part of this question more than the original question.  You are so worried about forcing her to close, but what about her forcing you to close?  If you are past all of your due diligence, than why would you back out of the deal?

Money follows good business practices.