Starting a new venture in business- getting a line of credit

Discussion in 'Starting a Business' started by Rhonda Schwab, May 8, 2013.

  1. Rhonda Schwab

    Rhonda Schwab
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    May 8, 2013
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    My question concerns starting a new business with my new husband and his son: We are trying to get a line of credit to start this business (flipping houses) and so my husband and I are applicants and his son is a co-applicant. My husband and I are the main ones who are showing out assets and liabilities for this business line of credit his son (age 31) has not credit history.
    His son will be doing the main construction work and I will be doing the books, payroll and such, my husband will be doing the budget, planning and contracting sub's. It could take 2 months for the projects to end. How to do this the right and fair way. We are putting our credit history up for the line of credit and his son not putting in his knowledge of working on the jobs.
    How should we be paid? Should the business be divided by 1/3’s and should we take a percentage of the profit from the job to pay his son at the end or have him take a draw during the project and paying the remainder of his share at the end?
    What is the best way to create a savings for the next job?


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