My friend is not licensed, nor insured - but he knows construction and is sub-contracting out the work to reputable laborers from his personal network, some also uninsured.  

As I said, the seller is in a distressed situation and really pressed for the funds to take care of elderly parents, who are the original owners of the property.I was told by a reputable bank in my area that handles land lots loans, that I don’t have enough liquidity and I would need at least $100k in my bank account to move forward.

As I said, the seller is in a distressed situation and really pressed for the funds to take care of elderly parents, who are the original owners of the property.I was told by a reputable bank in my area that handles land lots loans, that I don’t have enough liquidity and I would need at least $100k in my bank account to move forward.

Or, is it a reputable GC who is looking for a steady supply of projects and looking to partner with an out of town investor?

Data Points:101 Latham Place, CharlottePurchase price - $116,000Buy Side Closing Costs - $5000Total Rehab Cost Budget - $100,000Total Financed Amount (purchase + construction costs) - $190,000Estimated time to Rehab: 5 Months (based on conversations with multiple GC's and Architect)HML Cost to Borrow Interest  - 10,000 (12% rate on 190,000 borrowed across 5 months)HML Cost to Borrow Points - $7,000 (3.5% on 190,000)ARV - $310,000Exit Closing Costs - $3,500Staging Company to Sell - $3,000Holding Costs (utilities, taxes, insurance) - 2,750The Total Rehab Costs is based on what I believe to be a reputable GC who has experience flipping in this neighborhood.

When I think of reputable / national real estate companies most of them do better by diversifying geographically and taking the leap.

And you'll appreciate not getting sued (as often) and having your reputation tarnished by doing bad deals.Having your license is a good idea for one major reason: not getting investigated for unlicensed broker activity.

He is reputable and very active rehabber and wholesaler in the area.

He then proceeded to laugh that his partner was his cat.People like @Karen Rittenhouse and @Shawn Holsapple - both wholesalers who have been featured on the Podcast (Karen Episode 2 and Shawn Episode 136) - always close on properties they get under contract, even if they can't find a buyer.And yes, they've been doing this a while, have built up a reputation, and have funds available to make it happen.John's disdain for the wholesale concept is due to his experiences with people who aren't forthcoming and honest with the sellers. 

You can register an LLC in states other than where it was founded, but this runs into duplicated expenses.Custodians for SDRPs are plentiful, but you'll want to shop around by reputation and your own criteria.My $0.02 ...