Posted by rob croft on February 27, 2003 at 15:05:42:
Bob,
Live in Indiana? I live in Ohio. I never heard of Cook’s techniques but know some stuff from Ron LeGrand. They say to use LLC for long term properties and S-corp for flips. What kind of financing are you using?
rob croft
Rehabs/Partner – Need financing advice - Posted by Indiana Bob
Posted by Indiana Bob on January 09, 2003 at 11:41:19:
I am interested in going into rehabs, such as the Steve Cook method. I have a HELOC for $50K. My partner (relative) has a free-and-clear rental home worth around $100K. We are interested in forming a corporation to buy and perform the rehabs.
In your opinion, what would be the best way to go about funding these rehabs in the corporation’s name? Should I tap my HELOC? Should my partner pursue a HELOC on the rental house? If you believe either of these would work, how would we take the loan in the corporate name, even though each LOC is not in the corporation’s name?
We both have very good credit (700+ each), and both of us have other salaried jobs. Should we instead just pursue some conventional loan package for our company to purchase properties and pay for rehab costs?
All opinions are welcome.
Bob