nicholseberth

Yes, you can set up this type of company, provided, however, you meet the following:

1. That you are actively managing the company and are not a passive investor. You must be 'hands-on.'

2. You must have full time employees. Not one, but should be 3 on a case like this.

3. Substantial investment. Not defined by the regulations, but at least $75k USD. Note that you can include loans as investment (i.e. mortgage).

<<snip>>

Bob

bit of an old thread to randomly pull up...

nicholseberth

Is this forum not for sharing information? I did not see anyone answer this individual's query, thus I thought it appropriate to provide an answer.

Edward Walters

BritGuyTN

Several people answered the OP's query saying that getting an E2 to rehab properties is a crap idea, if not impossible..... opening a property rehabbing company requires virtually no capital, so not sure how you could buy one since it requires no intellectual property and a maximum of $2000 of tools....

read the thread in full....

fatbrit

So recommend ahead. Would you recommend an actively managed, property development company with 3 employees and a partially borrowed $75k USD would get the thumbs up out of London for an E2? Suppose as long as the lawyer's fees are up front, it wouldn't be your problem--would it?

BritGuyTN

Its funny

I have no ****ing clue what you cold do in property development with 75k

I like to mess around with lots of rentals, and i have messed around with the idea of development, but when it comes down to it, you need to have a LOT of skin in the game, i.e if you want to develop a plot of land into 20 houses you need to come up with about 1 million given a sales price of $200k per house....

rehabbing that the OP described is something my neighbours dog across the street can do and requires a good credit score and the ability to find some well priced properties...

nicholseberth

75K is not going to buy much in the way of property. However to invest 75 in the infrastructure of the company and to secure lines of credit and/or mortgages is possible. Depends upon where you are. In this area (i.e. Detroit) you could easily purchase properties to develop for that price. So long as you meet the stated three requirements and have crafted a thorough business plan with five year pro-formas, it can be done. If you ask if I have done a property management company for this amount before? No. Unlike others, I will tell you. I have done development companies previously for $175k. In that case, the company had been around for 5 years and DID have an infrastructure which a poster here said never happens.

Ted