All Forum Posts by: Harry Williams

Bumping this up :)

Thanks for your response. I am inheriting the same Development Agreement that the contact (investor) who recommended me to use this builder. 

I have the opportunity to finance an experienced house flipper in my area. I was referred by a trusted contact who does deals with him. While I have cash of my own, I also have access to a Portfolio Loan for 3.5% interest. The houses we are looking to flip have an ARV of around $500,000 - $600,000 and a 20% profit margin. Needless to say, it's about a $450,000 investment for the lender. Should I finance the home purchase, rehab, and holding costs with the Portfolio Loan or a mixture with cash?

Thanks 

I will be providing the cash for a builder and project manager in Atlanta, who has flipped over 500 homes in the area. We will be governed by a Development Agreement but generally, he will handle the project from start to finish and I will be hands off for the most part. Being that I will only supply the capital and not labor will allow me to dodge the additional Self-Employment tax. We split profits 50/50. Below are high-level numbers and info. I have altered the numbers to make the deal hypothetical, but percentages stand true. 

If I do not finance the deal with cash I have access to a 3.5% Portfolio Loan.

I will be providing the cash for a builder and project manager in Atlanta, who has flipped over 500 homes in the area. We will be governed by an Operating agreement but generally, he will handle the project from start to finish and I will be hands off for the most part. Being that I will only supply the capital and not labor will allow me to dodge the additional Self-Employment tax. We split profits 50/50. Below are high-level numbers and info. I have altered the numbers to make the deal hypothetical, but percentages stand true. 

If I do not finance the deal with cash I have access to a 3.5% Portfolio Loan. 

@David Dachtera further supports my thoughts. Thank you!

Me and a partner are joining together to purchase, rehab and sell houses and have created an LLC. Do you suggest also having a lawyer create an operating agreement and subscription agreement, or is this something we could draft on our own?

I am wishing to add a member to my existing single-member LLC in Georgia. Me and a local partner are teaming up to purchase, renovate, and sell homes (revolutionary!). We plan to split any profits or losses 50/50 — keep it black and white. This requires an Amendment to my current LLC. My question is: should I seek legal assistance or will drafting our own simple Articles of Organization/Operating Agreement suffice?

Thanks for any suggestions. 

Hello! I am planning to embark on my real estate journey in Atlanta and discovered this community through a recommendation. I first listened to podcast after podcast, and now finally created an account to join the community. I have capital and looking to diversify into real estate via flipping and or holding, among other avenues. I am always looking to meet and network with people in my area.