All Forum Posts by: Anthony Micklus

I did the rich dad coaching and the elite/mentor stuff. $31,000 and 7 years later I am still waiting to do my first deal. That is not to say the information was useless. I did learn a lot from all of them but had I known about BP I could have learned just as much and instead of spending $600 a month (to this day) paying down those credit cards I could have gone to a bank and borrowed that money toward the purchase of actual real estate. 

Welcome to BP Kelly! I myself am from Vermont. I have looked at properties in upstate New York. The deals there seem to be reasonable. I have also worked a little bit in Memphis, TN definitely a great place to find cash flowing properties.

I am looking at purchasing a property that is going up for auction. I am looking to create a presentation to hand out to potential private investors. Here is what I have so far.

Page 1 - Basic Stuff 

Picture of property.

Basic Statistics (Beds, Baths, Square footage, Acreage, ARV)

Deeper information. (Year Built, Siding, Roof, Basement, Foundation, Heat etc.)

Page 2 - The Numbers

Cost to Purchase, Closing costs etc.

Cost to Repair (Clean out, New Floors, Painting)

Holding Costs (Taxes, Insurance, Utilities)

Anticipated Sales Price, Closing Costs, Commissions.

Profit and Split.

ROI.

Does anyone see anything I should be adding? Your input would be greatly appreciated.

People who don't manage money well have other tell tale signs on their credit. One big flag is their utility bills. If they aren't paying their electric bill they are probably not going to pay their rent.

@Dell Schlabach lol! No I don't plan on moving to Ohio anytime soon but I am pretty handy with a computer. That seems to be a skill that is useful in this business. Besides I didn't know if you were looking to invest in other areas you never know until you ask.

Disclaimer: I am not an accountant nor am I a financial planner. 

Here are some factors to consider if you have a 401(k) 

Company matches are vested this means that you don't get the entire match until you have worked there for several years (my last job it was 7) that said you usually get part of it so say you have 10K in a 401(k) and the company matched you all 10k but you only worked there for a year. Well now you may only get 2K of that money but if you have worked there for 7 years you get all 10K. Bottom line if you haven't worked at your job for very long or you don't plan to stay very long I say invest your money elsewhere. 

Most 401(k) plans allow you to borrow from them so you can essentially become your own private lender. You pay yourself back with interest, there are no penalties for doing this and the interest you earn is tax free. If your company matches this could be a way to leverage your buying power.

If your company doesn't do any match I wouldn't bother. You would be better off getting a Self Directed IRA. This allows you to invest your money in whatever you choose (there are some exceptions but real estate is not one of them.) best of all the profit you earn is tax fee.

Bottom line there are advantages to either but talk to a professional Tax Accountant before you make any decisions.

@Dell Schlabach may I ask how where your funding is coming from? Is it your own funds or do you have a private investor or investors you can draw from. Perhaps I can use my time to help you out. 

@Jay Hinrichs and @Brian Gibbons

I have no problem paying my Dues I have spent over 31K and 7 years of my life "paying my dues" I say this only so you know I am not looking for a lazy or cheap way out.

@Dell Schlabach thanks for the tip we have a company here called Flat Fee which basically charges the seller a flat fee to list their property on MLS. I have tried calling them once but they did not return my call. Perhaps I will call them again.

I think @Brian Gibbons makes a good point. If you are assigning the contract it is pretty easy to prove you are acting as a broker. (whether you are or not it up to the judge.) But what about a double close? Technically you are taking ownership of the property before you sell it. There are no laws against that. But what if you are marketing that property before you own? This creates a huge gray area. The other question I have for those of you that are wholesalers with a license, how to you handle your broker fees? In my state I need to sit under a licensed brokerage for 2 years and 8 transactions. That broker will take 30% - 50% of my commission. How can you wholesale under that?

I have a colleague of mine that had the same thing happen to her. In theory one could argue that you are selling a piece of paper but who wants to pay the $1000s to get an attorney and fight it. I tend to agree with most of the people here just get a license and be done with it.