Invoice MY OWN COMPANY for Labor

Rehabbing, Fix and Flip, Rental Properties
1

Okay, ya’ll I am about to purchase this 2bed/1ba single fam, to hold (my first hold YAY!). Anyway, because of ho I need to structure this deal I have decided to use a HML. My HML of choice requires draws AFTER repairs, which i am fine with, but this is the deal, since I have hired employees, (handy men in the family, including my husband), and this house neeed light rehab ( paint inside, paint outside, cleap up outside, light landscaping, and new kitchen appliances), I have decided to let my employees take care of these small things. Since this is what I will be doing instead of using contractors, I will be paying for materials out of pocket, and I have to pay my labor. The HML requires receipts and/ or invoices for materials and labor, so my question is how do I incoice my own company for labor, without the HML asking WTF? I’m sure it has been done before, but I haven’t done it so please let your wisdom flow.

And while I am typing, do ya’ll have any advice on how to get tenants into this quickly. Like I said this is a very light rehab, and I will have my people in and out in about a week. I really want to hold this one, but I am willing to do a lease option, or a straight sale for the right price. I just want to know how I should advertise to get some one in it inthe next two weeks.

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Anyone?

3

Hello

4

It depends on the HML process. Ask your broker to explain it to you. I gave my guy a while back a list of repairs that were to be done. It was listed by materials labor and total.

Item Material Labor Total
Paint $350 $600 $950
Carpet $650 $750 $1400

I requested a draw. They sent out an inspector, when the inspector agreed that the repair was made, they cut me a check. I distributed it to whoever was owed. The rest I kept.

5

Thank you. I thought no one would reply. Anyway, that makes sense. Just one more thing I am not working with a broker. i am dealing with the lender directly would that make a difference?

6

No I would ask your HML will he take completion of each line item for draws. My guy would only give draws in $5000 hunks and the inspection fee was $100 (to cover the cost of coming out to the site). It was kind of cool. The inspector didn’t look for quality of work, just that it was done.

7

If you don’t mind who was your HML