Original message
| Lorenzo
   |  "Need advice on new business venture"
, Sun 20 Aug 10:36: 
I have worked with home renevations for years (jack of all trades) and I would like to go into business buying and selling property. I want to know if this is a profitable business that someone could live well off (not refering to infomercials),seriosly speaking. I want to know what kind of profits can be expected and what average turn around times are. I am curious about when does someone start to see profits, and how is money managed due to the irregular pay cycles. I don't know how to go about beginning ie licenses, registration, etc.. or if it easier to be financed as a business as opposed to personal loans. Can someone please give me some much needed advice and information or refer me to material that can help? Feel free to send as lengthy an email as you like, as I want to know the realities of such an undertaking. Thanks lm2710@tampabay.rr.com
[this message was edited by Lorenzo on Sun 20 Aug 19:59] |
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| Lorenzo
| "Some background info" , Mon 21 Aug 10:37
Ok, here it goes, its a bit lengthy so please be patient.
My fiancee and I just graduated college and she landed a job that will support both of us (making ends meet). I have six months before my student loan payments kick in, so I would like to get this started before I have those monthly payments due.
I have a partner who wants to do this with me, but he can't quit his full time job until we make enough to support both of us. I am in the process of liquidating some assets that will leave me with a small amount of cash to hopefully cover for my half of any down payments or repairs.
Here goes all of my questions. We aren't sure if we need a business license to do this and if not, how do we handle taxes and the legal aspects? Also, we weren't sure if having a business license would be beneficial, for the following reasons. Would it benefit us to open a business account at a supply center using a "tax number" for all of our materials that we purchase. We aren't familiar with loan apps. either. Is it beneficial to apply for a loan as a company as opposed to a private individual? Also we don't know if together we would qualify for a loan, and thus we have someone who is willing to co-sign for us, but if we are a business, does this person have to be listed as part owner to co-sign?
We have been doing research on foreclosures and thought that maybe that would be a good start. The court house auctions or realestate agents, etc... We were also told about tax deed sales, but Im not to sure about those. We don't know what would be a good introduction to this business for a novice.
I am confident in my experience in home repairs to handle most anything; however, I am not looking into constructing additions or even complex and expensive repairs. We want quick turn arounds. I have approx. 90% of the tools we would need to do most any job, I figure the rest could be purchased once things are doing better.
Another aspect that has me concerned is the paperwork and legality. I am familiar with placing offers through RE agents, but thats it. I am not sure about placing an offer directly from me to a home owner. Do I need to find an attorney to write these forms up for me?
I really need to be pointed in the right direction with all of this. I know I can make it work so long as I know what I am doing. Should we first see what we can qualify for, and then we know what are price range is and go from there? How about handling mortgage payments if the house doesn't sell? Are there ways around this or is it just a given that you should have a certain amount available before you begin to cover for this?
I am sure these are too many questions and the answers I need are too detailed and complex to handle on the forum, I appalogize for that. I would be more than happy to call someone or discuss these questions via email. Again sorry for clogging up the forum and thanks for the help.
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