All Forum Posts by: Bill Quigley

I'm part of a REI group that has trained us on how to make the presentation using tools they've provided (we bought).

I would go through the numbers with a Seller to show them all the Costs associated with selling their house and what their final cash amount could be.  Let them know that they could spread out the capital gains tax by seller financing the cash amount to you over terms.  Be sure to include the Dealer commissions even if you may not use them, and the other Mortgage, Insurance and Property Tax amounts they are responsible for until the property is closed on.  They would only pay tax on the amount they received in a year instead of the entire amount (which could possibly push them into a higher tax bracket).  

Show them how they are protected in the Subject-To sale because IF you fail to make payments on the mortgage, they will know about it immediately since it is still in their name, and in worst case scenario they would get the house back, but we never want this to happen. 

My plan, going forward, is to buy properties using Subject-To (making payments on the existing mortgage) with the goal to pay the remaining amount by Seller Financing so I do not have to get a Loan or other financing.  But the Seller almost always is looking for some cash, so some money or financing will always be needed.  

Check out Jay Conner and get his book “Where to get the money now”. 
https://www.jayconner.com/book...

I have been using Excel also.  But I've been using Stride (free) to handle my mileages and Food Business Expenses.  You can take a pic of the receipt and it will save it.  There are also other categories (such as Supplies) you can add receipts too.  It will also send to your email a PDF and CSV files for Mileage and Other Expenses.  These can then be imported into QuickBooks.  I may now have to look into using Stride for my Rehabs now. 

@Alex Ko another option you can consider is being a private money lender. You could also use that info to look at other markets since you will be getting portfolios from rehabbers looking for private money.

@Nnamdi Okwerekwu shell this out for help on contracts. https://www.biggerpockets.com/blog/2010-02-17-whats-in-a-contract-contractors-rehabbing-real-estate

Make sure your contractors contract is solid so they cannot file a Lien on you. But as I’ve found out even with a contract they can still file a lien. Get with an attorney on the contract 

Get the MLS from a Realtor

Some of what I have learned was that you can just provide them straight Interest payments, such as 12% simple interest per year, which is 1% per month.  So you can just provide monthly payment to them of;

Parent In-Laws: $59,000            $590/month
Sister in-law and BIL: $10,000    $100/month

If it takes you 6 months to Flip and Sell then they make 6 times the above amount.  Then you pay them back their Investment after the Sale.

Or keep their Investment to use on your next Flip, and continue to pay them the monthly interest payments.  They are getting 12% per year which is a pretty good return.  This is what I would do if I had that opportunity.

@Wayne Brooks, I wish that was true.  In my case contractor was paid in full.  Then sent me a list of undocumented changes and other frivolous charges to pay him.  I was going to pay him some of it (reimbursement for receipts) but he already filed the Lien.  4 months later I had to settle even though he was given 30 days to correct paperwork or forfeit.  He did not file, my lawyer would not pursue, so eventually I settled since I had twice the Lien amount holding in escrow till this was settled or until a specified date.  The date won.  Oh, and he did sign a lien waiver on last payment, but that did not help.