All Forum Posts by: Jim Williams

i was wondering if anyone has come up with a generic worksheet/contract form for rehabs? i'm working on putting one together, but would love to see what some others have.

thanks

jim

this is supposed to be normal right after you close on deals, but after 6 months or so of showing payments being made it should bring your score up higher than before. at least that is what i have been told.

i am in process of buying 10 or so seperate rentsl houses right now and will be very curious just how true this theory is.

jim

this brings up something i was thinking about. i will be looking for properties where i pay cash for purchase and rehab, with this total amount being 70% of ARV(or less). then, with a partner, who finds the deal, buying me out(whether with new loan or ?) at 80%LTV of ARV, and they get the property for themselves with 20% equity.

since i will be an LLC, this could be a good exit plan, as it is hard to get loans as an LLC. plus i can make a little and move on to the next deal. with the partner getting the remaining equity it could be a win/win situation.

just a thought that will need refining, but i think it could work.

jim

you're right about non-rcourse, butr those aren't easy to find. in my scenario i won't have to go that route. the company i'm working with is at www.wolfecapitalgroup.com. the guy i'm dealing with is Tanner at 702-982-5226.

i'll also be giving you a call.

you did exactly what i'm doing, but you have to be very careful in the wording of your LLC and way you purchse it with self-directed IRA, or you'll have IRS problems.

i found a good article at www.paladinregistry.com/LFP/article_detail.php?articleid=537&article_category=5. i also contacted this guy and talked to him for awhile. i will probably use him as a consultant once i have everything ready to go to double check the plan.

jim

though i am still in process of setting up LLC, i know from reading other sites and articles that there is no limits on number of properties. if it is done right the LLC is it's own entity, with IRA owning membership shares.

the one restriction that is tricky, is leveraging. if not set up correctly you could have to pay taxes, because you can't have debt in the IRA is the way i understand it.

we will be setting ours up in such a way as to avoid this problem. though i don't know the specifics yet, i have talked to a couple of consultants and they say IRA investing in a LLC is the way to go, if done correctly. and they say we can avoid many restrictions and that there are ways to do it. without actually hiring them, they wouldn't get specific either.

if you want to talk about it more call me at 619-807-3179 pst.

jim

i think it's even better to take it one step further and purchse an LLC with IRA. if done right you don't have as many restrictions and have more control.

i'm actually in the process of doing this right now. plus, i am getting a huge LOC for the LLC thru the company who is setting this all up for me.
it will be just for RE.

the company is called Wolfe Capital Group. very interesting.

jimbo

i'm trying to determine if there is way to sell a flip property without incurring short term capital gains. other than land trust or lease option, are there any ideas out there to be creative.

jim

check out this site. i'm thinking about using them. www.ez-fast-sale.com/onlinesellerkit.

jim

i am looking to set up an LLC owned by my Roth IRA. i would like to find someone who can give me a legal opinion on having debt within the LLC, without having to pay taxes on profit, and compensation within the LLC.

thanks

jim

i left out one important thing. i'm doing it on stated income, which i believe makes a difference.

jim