All Forum Posts by: Lucero Sanchez

 I have a few questions about your reply which is pretty interesting someone a while back told us that it's a good idea to have separate llc but didn't get into details so I hope you can answer my questions.

You said to put every house on a separate llc, so if we flip 3 houses per year each one should be on a separate llc and if we get 2 other properties to keep as rentals does each rental need to be under a separate llc or should the rentals be under one llc?

The other question I have is do we open one business bank account under another llc for all monies from all flips and rentals to go into or do we need to open a separate bank account for each flip and another bank account for all rentals or each rental? 

Is an llc forever or does it disappear once the flip is sold?

Also what backs up the llc on each flip/ rental do we need to get insurance on each llc, how does that work?

We have been doing 1 flip every 1 or 2 year for the last 12 years and have just been using our personal bank account, but now want to take it more serious, someone a while back mentioned to us about the llc but was very brief. We want to understand it better. 

I thank you in advance for your time and feedback.

Has anyone read 

The Real Estate guide to financing by Davis Reed? I saw it the other day at a local books store I took a picture of it but I was in a hurry so I didn't buy but if it's good I'll go back and get it.

p.s we here at BP like to see who we are talking to so adding a picture to your profile is a great idea.

Hi Bishop and welcome to BP, you can learn a lot here on BP through forums and the podcast are great. I'm not sure what your situation is right now but a good way to get started is:

1) save money anywhere from $1k to $10k just depending what route you want to take, you need some money to start, so set a goal to save as much as you can ")

2) get financed to get your first property (FHA loan), like I said I don't know your situation so I'm writing this as if you don't have a house of your own right now.

3) once financed you can now look around for what you want, you got a couple choices since you will have to live in the home.

     *You can be a "live in flipper" you buy a SF (fixer upper/out dated) stay in it for 2 years (per tax purposes ) fix it little by little till you are ready to sell.

Or

      * You can do "house hacking" you buy a duplex or a 4 plex (again a fixer upper/out dated ) live in one unit and rent out the rest have the tenants pay your mortgage. 

And you than start to use your equity and money you save to continue making your capital grow.

These to ways I feel are a good ways to get your foot in the door, someone else might have another idea as how to start but this is my opinion.

You probably already knew this but I thought I'd through this in just incase :)

Wishing you success  ;) 

We plan to build our home this year we already got the floor plan done we still need to send to the city and HOA for review and approval but we want to start getting bids, is there a special website for residential contractors where one can submit the floor plan and get bids, is there such a thing?

It's crazy the things tenants break, our previous tenants broke the celing fan, the microwave and glass sliding door all in one month! We replaced the microwave because it stated on the lease only because it was old but when we put in a new one we revised the lease and had them sign it that if this microwave breaks THEY will need to replace it, guess what it never broke.

We replaced celing fan and sliding door we deducted from their deposit.

We never include washer and dryer they need to bring there own.

When appliances are broken by tenants we do replace with semi used ones and have them sign a revised lease that they agree to replace if they brake it. We have had success with it. 

For your next lease add that appliances are in working condition and have them sign it stating that yes appliances do work and that they will replace if damaged by them or anyone they invite to the property. 

Good luck. :)

@Youssef Benallai I don't know how thing are ran in your country for Real Estate Investments (REI) but I can give you an idea what REI is here in the U.S. so you can see some categories in RE, there are more but this is what I am familiar with and how a lot of young future REI's start off:

With the investments below you will want /need to buy distressed or outdated properties so you can create equity (money) by fixing/ remodeling in some cases you get equity instantly but in others it's long term just depending where you are investing, always do your research before you invest you want to make sure its an area that has potential growth in the near future or is growing now or the area has a high demand, so always do your research (hint I've noticed that where ever a Walmart is it tends to make the town or city grow) but that's just what I think and by my experiences here in Arizona, someone might tell you other wise but that's ok they are sharing their knowledge ;) 

1) House Hacking: you buy a duplex or 4 plex and live in one unit and rent out the other ones, so your tenants pay the mortgage for you.

2) Live in Flipper: you buy a SF (single family) home again distressed or outdated you live in it for at least 2 years (to avoid capital gain) mean while you are fixing it nicely so when you are ready to sell the home it has gone up in value and you get equity (money) back.

3) Whole seller: You find home owners that have a distressed property or just can't keep up with the property or can't make payments on mortgage for what ever reason just a situation that they no longer want it. So I have heard a few different ways but here is what I understand from what I have read here on BP but do your research on all these that I have mentioned. 

* you find the property you negotiate a price point that can be a win win for you and the owner, you put as little as $500 to hold the property than you find a REI that will buy it so they can make some money off the property and you put anywhere from $1000 - $30,000 in your pocket just for finding the deal.

You get the money and don't spend it you invest it again and again making your money grow. There is a lot more to all this so read, read, ask and due. 

Like I tell my daughter "the ignorant one is the one that doesn't ask" ")

But again do your research, we are "Live in Flippers" (for now) so House Hacking  and whole selling is something we have not done.

Once your get your foot in the door and get the experience than you can look at:

Fix and Flip: you buy distressed property fix it and sell it in as little as 3 months

New construction: you by the land and build a house on it and sell it

So these are some ways you can start in REI but first save as much money as you can :)

I hope this info helps you.and hopefully other BP members can give you more ideas and info ;D

Wishing you success. :)

I'm so sorry I misspelled you name, my phone does out correct ")

Hello Yourself and welcome to BP the best thing you can do is read as much forums as you can and listen to podcast they are very informative and you can definitely ask question just research this site it is full of experts in this business and you will learn a lot from them. You are young with ambition and that's wonderful you are on the right path, in this business it takes time and patience to become successful and starting young is even better,  success doesn't come over night, my husband and I have been at it since 2002 and we are barely halfway there.  

You might not find a coach or a mentor to dedicate there precious time to you not only because they are busy working on project but also you would need to offer something to them in return just to make it a "Win Win" situation. But like I said this site is golden it has so much to offer just read, listen and ask and if you can give some little advise in return that would be even better. 

I suggest you read a couple of books also like " The Secret Mind of a Millionar" and also here on BP J Scott has an excellent book on RE it wouldn't be a bad idea to invest in that book.

Wishing you success;) 

I would do aluminum doors or no doors j/k our last tenants had dogs locked inside the rooms and the dogs tore the doors apart to get out, and they were not even allowed to have pets on the property! 

Good luck ;)