Property Renovation Business - Advice?

VH

I am considering going into property renovation (buying, renovating, selling) with my father and 2 brothers. We all have experience in the building trade and we also have experience of renovating our own houses.

We've already identified several sources of cheap property for renovation.

I would be putting up most of the initial capital and dealing with the legal and financial side of things. I have no idea how things would work in terms of setting up companies, splitting of profits, etc. and so have a number of questions which I hope I can get some opinions on. They are a bit simplistic but here goes...

1. How to set things up - Limited company or another way?
2. How do we share profits? 4 way split, or would the split depend on the work / amount of capital being stumped up?
3. If we're not doing a simple 4 way profit on the split, how would we work out the split?
4. Anything else to consider (besides the state of the property market)?

lady_noluck

Could you let me know where to get cheap property for renovation? Round where I live even the cardboard boxes are expensive!!

frugal_dougal_3

Recommended Reading ;

Setting up a Limited Company ISBN 0-11-702817-7

Published by The Stationery Office and available from Online Bookstore www.clicktso.com price £7.99.

I found this extremely helpful.

It will help you decide whether to set up a limited company, and if so whether you will all be directors and how to allocate shares etc.

This comment is a bit obvious but each project has to be very carefully costed to ensure that there is going to be enough profit to share between all four of you.

Good Luck !!

VH

lady_noluck wrote:

Could you let me know where to get cheap property for renovation? Round where I live even the cardboard boxes are expensive!!

If I told everyone then they wouldn't be cheap anymore!