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MC Homes LLC Category: Rehabbing Fun
Current Grade: A-
Total Views: 852
Member Comments: 3
Posted on: 01/16/2007
Posted by: MC Homes LLC
Blog Points: 449
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A friend and I have been dreaming about getting into the rehab business for months.  We're also not rushing into it, and will not be starting for a few more months to make sure that we have everything under control.  My friend is a real estate agent which should really help us out.  We are located in the Kansas City area.

We're looking into all of the details right now including:

  • Setting up a legal entity (LLC)
  • Accounting necessities
  • Tax implications
  • Financing
  • Supply costs
  • etc.

I'm sure you've all been there.  For the most part, I've found that there is no one jumping at the chance to help out with those questions.  I almost feel that we're going to have to break down and hire an accountant and lawyer.  I'm not sure if people are trying to protect the secrets or if the people we ask, just don't know the answers.

First of all, I would welcome any comments/suggestions that the users here would be willing to give.  Specifically I am finding that financing is not as easy to come by as I would hope.  What is the best resource for financing for rehab?  In the near future, we should not need financing as we hope to have cash on hand by the end of this year, but for now it is a problem.  Many places that I have seen that offer loans, specifically exclude real estate investment.  Others that include RE investing, have outrageous rates.  Can my partner and I get a traditional mortgage under the business name?  Any help would be appreciated.

Current Grade: A-
Category: Rehabbing Fun
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Vieving 1 - 3 out of 3 comments
Hampton Roads Property Solutions

Posted By: Hampton Roads Property Solutions on 02/25/2007
best of luck to you bro
 
Property Management and YP Consulting
Ambassador
Posted By: Property Management and YP Consulting on 01/18/2007
Hey man, if you want, I'll look into the financing for you.  If I can get you the best deal, then go with me.  If I can't, go with someone else.  
Also, I recommend you start an LLC for EACH of your investment properties.  For example.  You would have one called 123 Main St. LLC.  Another called 8910 Washington Ave. LLC.  
That way, not only can litigators not go after your personal property, but they cannot even go after your other properties.  When you've got a few properties and troublesome renters, contractors, or neighbors, you'll be glad you did.  
Abe
 
Matt

Posted By: Matt on 01/16/2007

Not too many secrets, just a lot of asking questions and trial and error.

To get yourself started contact your local Small Business Development Center.  They are nation wide and are the best to explain the details of getting off the ground.  In Ohio we have a site that gives you all the legal docs you need in one place... http://www.odod.state.oh.us/onestop/index.cfm

As far as financing, the best option we can find on a national basis are in the Financing section under Resources at the top of the screen.  Mention RealEstateInvestor.com if you would be so kind.

Go to the video section.  One of our users is interviewed in the Rehab section with great tips.  Also, another user has submitted videos of a house being rehabbed step by step.  

Good news is if you stick around here as we continue to develop the community you will soon find everything you need in one place.  

Welcome to REI.