The structure is really to allow 2/4ths of the principals in the development to not participate in the fund if they so choose.

Kalyn everyone wants cosmetic properties.You will find regular home buyers do not have to resell and will accept way less of an equity position and pay a higher price to get a home cheap with a low monthly payment.Their goals are totally different than a rehabber.This is why a bunch of success is taking on properties where a home buyer is not a competitor but it drives down the price with the property not being loan ready.If your offer of cash is just slightly lower than a finance home buyer the asset manager might still choose you.If there is a wide difference the asset manager might take a shot with the finance home buyer to net more.It depends on a bunch of factors which is being at the right place at the right time.You also have to understand local,regional,and national banks make decisions in different ways.Kayln are you offering to let the listing broker keep all the commission are are you getting greedy and asking for the co-op??

Suggestion:- 30% down on purchase/renovation costs (minimum)- 8.5 - 9.5% interest rate- 15 year am"It's just like a contractor doing a job.I can go out and find someone quick to paint my apartment unit for 500 OR I can take some time to find a painter that I can get to work for 75.00 a unit that does a good job.I believe finance is the same way in that there is a bunch of money wanting to lend at rates and conditions that are not attractive to a buyer.So you have to find a lender willing to take less than the majority so you have an advantage.A question I have thought about is would you target one really wealthy investor or a bunch of smaller loan investors??

Make a web sight, some business cards, that makes it reputable. 3) Form your investment property as an LLC, because you can choose your taxation, and move it to an S-corp very easily if you later choose to, but you will have a hell of a time changing a S-corp into anything else. 4) Lend the funds from XYZ lending too XYZ properties, this mitigates all losses, creates returns, etc..

Many investors wrongfully assume ARV means paint and flooring, but it also means brings HVAC/mechanical, plumbing, and electrical up to current standards.

It sounds like a good idea but a lot of people might want to choose their own inspector.On the other hand, it could also open a can of worms for you if a severe problem you didn't know about is found.

Here's was my Pre-Purchase Checklist when I first started:Upon Contract AcceptanceEnsure Access to Property: * Make Copy of Property Key(s) * Purchase New Lockbox * Place Key(s) in Lockbox and Install at Property (hidden)If Certified Funds are Required for EM: * Get Certified Funds for EM from Bank * Submit Certified Funds to AgentIf Financing the Purchase: * Send Contract to Loan Officer * Provide Loan Officer Property Info * Connect Loan Officer with RE Agent Info * Have Loan Officer Schedule Appraisal * Make sure Loan Officer Knows Anticipated Closing DateDue DiligenceInspections: * Turn On Utilities for Inspection (water, gas, electric) * Schedule Termite Inspection * Schedule Property Inspection * Attend Inspection and Take Notes for “Scope of Work” * Get Final Inspection Report and Review for “Scope of Work” * Get Termite Letter/Pest Inspection ReportContractor Prep: * Create Scope of Work * Create Materials List * Determine Which Contractors Are Needed: * GC * HVAC * Roofer * Electrician * Plumber * Pest/Termite Control * Painter * Landscaper * Carpenter * Schedule GC Walk-Through(s) * Get Contractor QuotesPurchase Decision: * Perform Final Financial Analysis Using Estimates/Quotes * Perform Both Flip and Rental Analysis * Make Go/No-Go Decision on PurchaseUpon Contingency FinalizationFinal Purchase Prep: * Get Closing Date from Lender/Agent * Arrange Landlord Insurance Policy * If Financing, Connect Insurance Agent with Loan Officer * Follow-Up on Appraisal with Lender * Choose a General Contractor * Choose Sub-Contractors (if no GC) * Determine Exit Strategy * Create Rehab Schedule (if no GC) * Create Final BudgetPrior to ClosingFinal Loan and Closing Prep: * Obtain and Review HUD-1 * Obtain and Review GFE (if financing) * Ensure Loan is Ready for Closing (if financing) * Get Certified Funds for Closing * Determine How to Hold Title * Get Partnership Agreement Documents Signed (if partnering)Upon ClosingDay of Closing: * Get Keys * Change Property Tax Records to Home Address * Get GC and Sub Contracts/Docs Signed * Arrange GC and Sub Start Dates

Once fixed up and remodeled, it will be a 3bed/2bath 1712 sq ft.Major improvements include; replaceing interior doors and two entry doors, flooring thoughout house (carpet/tile), ceiling light/fan fixtures,basement(all), new electrical panel,countertops, windows, and paint.

You can then if they don't very easily file and get a judgement against them or you can choose to not pursue it at that point.

Since this is a new venture, it may be wise (as Jon points out) to spend some time getting educated on a number of different strategies, and then choosing one that makes the most sense and can be executed with optimal efficiency and results.