I'm currently attending the University of Louisville (Go Cards!)

I'm a rookie and I'm trying to pick up a multi-unit/english-basement house to in order to save on my mortgage expense and get some PM experience.

Even if this rookie get's a buyer....they can't do anything without the original seller coming to the party.

An economic slow-down, a lost job, anything really, and the house of cards comes a tumblin down and you lose everything.BTW, I have the book in question and will check it out to see how the formula works.

Kevin, Rookie or not, you are correct in your thinking.

., etc) you need for a project seperately with your own credit card/checkbook.

Is their credit card maxed out or close to it?

All parties need to be familiar with the process and willing to work in this way.You may also need a line of credit with vendors or otherwise as they may not be willing to release materials only to wait 30-45 days to get paid on them once the draw is paid out.Oh and dont forget about lien waivers, you have to get them to continue going forward, and so that the contractors cant put a materials or labor lien against the house.Spend some serious time with a skilled loan officer that has completed many of these, do not go to rookies on this one.Lastly, if you want to do this for it to end up as a rental, then plan on living there upon completion of the rehab, and then refinance the loan to a Fannie / Freddie non-owner occupied loan to convert it to a rental.

As an owner of an LLC, would it be in my best interest to seek a hard money loan, traditional financing from bank, small business credit card, online (lendingclub.com or prosper.com)?

Or is this a rookie/sketchy move?