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.
