All Forum Posts by: Joshua Howes

Cool thanks Mike, what if they aren't investing in a specific project but are really just looking for a return over a decided period of time?

Hey BP fam, I've got a question regarding investors. I've been successfully flipping houses for over a year now and more and more investors are approaching me with interest in investing. I've heard on numerous occasions about flippers using OPM to finance their deals and then splitting the profits with their investors. Assuming they aren't added to the LLC as a member or included on the deed, how do they secure their investment? From a profit/tax standpoint, what needs to happen to ensure both the LLC owner (me) and the investor are above board with the IRS and any other entity that I'm not aware of.

Loaded question, what if there are multiple investors interested? Of course the more money the easier it will be for me to scale. I just know I'm missing something. From structuring the investment all the way through cashing out, I want to be sure we are squared away. Any help is greatly appreciated!!!

Hey Chad thanks for the response!

Hey BP family. I'm looking for some different avenues of approach for the following scenario. I'm currently flipping houses aka chasing cars for the last year and now that I've finally caught one, I'm not sure what to do haha. I'll pull in roughly 116k profit on this deal I'm closing on. I've done some research on how to allocate the funds between paying myself and maintaining money in the LLC's account. I don't have a flipper mentor so I'm reaching out here to see what other people are doing. Thanks for any help in advance!

What I've found with a profit first approach:

 5-10% to myself as pure profit

35% allocated for salary (my monthly salary)

40% for operating capital (follow deals, floating contractors etc)

15-20% set aside for taxes. 

I'll have to catch the next one, just seeing this. Looking forward to meeting you all!

Hey Natalie! I'm an investor in Sanford too! We gotta link up and talk shop.  

Call Bobby Davis for Septic (919) 481-6929

@Frankie Paterno haha to be fair it doesn't take many projects to be overwhelmed.

Hey Kayden, 

Let's connect! I'm not sure what price range or level of rehab you're interested in, but I'm up to my neck in projects in several of the towns that satellite Raleigh. Let's set up time for a call or something and I'll do what I can to help.

Hi Dana! Congrats on getting started. I look at finding a new tenant the same way I look at hiring a new employee. In my success, I've learned to come to the table with a list of criteria. 

My most important piece of advice is to ensure the Candidates meet the criteria rather than making the criteria meet the Candidate. 

Also a note of importance, The Fair Housing Act requires landlords to give all walks of people an equal chance of obtaining housing. Just like with regular employment there are protected classes of people. Here is the HUD's breakdown of the FHA if you're interested https://www.hud.gov/program_of...  In short, the criteria below will ensure you're making an objective decision.

Here is a dirty and quick rundown of how I approach the criteria:

Minimum Credit Score: 660 (Might vary on your location where you set your standard)

Monthly income: No less than two and a half times the rental rate (3X is even better)

References: Professional, Personal and Previous Landlord. I call their previous landlord and basically ask if they were good tenants, if they were ever late, if they would rent to them again (that's a big one). I call the Professional reference to get a feel for their employment and their standing in the company. 

Background Check: I run this and the credit report through Cozy.co. 

Feel free to reach out to me personally if you have any questions and best of luck!