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New Business Startup/Idea Question

FraggelFraggel subscriber Posts: 1
edited July 2007 in Startups Created by StartupNation Community Members
Hi all finally found a site that has some worthwhile info on it. I have been unemployed for 7 months now and am rdy to start my own business. I have decided to start real estate "flipping" business. I have been in construction field on the side for the last 6 years and am confident that my lvl of expertise in contruction and cost effectiveness can turn profits on each flip. I need a little help to straighten out my thoughts on how to proceed. I feel that starting an LLC is the way to go, but am not sure if it is right because I only have around 1k to invest for start-up and as u all know thats not enough to buy, fix and sell real estate. So is LLC the way to go as far securing capitol to accomplish the first flip or is there a better way that investors will feel more secure with. I am willing to return 50% of the profits back to the investor after sale. Is this ok? Second question, how long will I have to wait to start looking for capitol and start doing the start up functions. Can I start now or do I have to wait until everything is finalized? Can I develope logos, web presence, letterhead, and all the other stuff while I wait? Any help you guys and gals can give would be greatly appreciated and if anyone does this for a living I`d love to hear from ya.
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    eNerdeNerd subscriber Posts: 0
    An idea for financing is using http://www.prosper.com/ to get a loan that a conventional bank will not. 
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    verneverne subscriber Posts: 1
    get in touch with score its free cause most likely you have to have a license and with them you will have the info.
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    LtresselLtressel subscriber Posts: 3
    Hi Fraggel,Although forming an LLC is important, I think what your investors would be looking for in a partnership will be the following:1) How are you acquiring these properties? Are you going to have them finance rehab costs and acquisition? 2) What is your projected hold time? Houses don`t sell as fast as they did 24 months ago. 3) With a $1,000 dollars this might be the route you need to take.  Apply for a rehab loan, (make sure that you are using a broker who is knowledgeable in this field).  This way your only cost possibly is appraisal fees and hazard insurance.  In some cases, appraisal fees can be included in your closing costs.These are just some things to think about. Cover your bases because a house that you hold can eat up plenty of your profits if you don`t have a good entry and exit strategy.  Real estate investing is all about crunching numbers and giving yourself room to breathe when the market is slowly correcting itself.  Consider giving yourself education beyond the construction side also.Good luck to you!LT
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    EngineInventorEngineInventor subscriber Posts: 1
    Please e-mail nathangdad@yahoo.com</A> as I have
    an opportunity to discuss with you.
        Sincerely,
         Darwin Nunley
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