All Forum Posts by: Bret Ehlers

Congrats on passing your licensing exam Toni,

100% of you income will come from your work not from your broker.  It does not matter if it is a National Franchise or Mom and Pop broker.

You need the following.

1. No commissions paid to the broker on your personal or investment property buy or sell.

2. As low a commission split as possible with the broker or better yet just a desk fee.

Make sure you and the broker place in writing your commitments to each other.

It is time to go make some income from the fabulous business.

I'm Glad You Asked!

Bret

This is an interesting thread of events Karen.

Not sure how it all fit together with the "S" Corp.  Did you purchase the rehab project using the "S" Corp?

I believe you are missing out on some real tax advantages and $$ now with the "S" Corp since you failed to utilize all of the available deductions for business start up expenses and the pass through advantage to your personal tax return.  This may be the money you need to pay off the tax obligation of your husband. 

Here is a rule Heidi and I learned in our early business experience.  Hire a strategist who is Tax Expert and specializes in business and real estate tax law.  

Based on the info you have shared, it is not too late for you to capitalize on these tax benefits.  For the same money you would pay a W-2 franchise CPA you can hire a true business and real estate tax expert.  Don't wait.  Do it today.  Just the peace of mind will be huge.  We know this from experience. 

You can easily repair your credit and tax issues as well.

To your Business Success.

I'm Glad You Asked!

Bret

Eric, as an investor you are always going to be in solution mode.

It is what we do.

I don't know the particulars of your contract restrictions. 

If is is listed or For Sale By Owner will determine what can be done. FSBO's are generally easier to work.

A couple of suggestions.  

1. If it is a good enough deal for you to purchase it would also be a good enough deal for someone else to purchase.  Wholesale the deal and go get another transaction.  There are plenty of good deals out there.

2. Who do you know who you can trust and have them get the owner occupant loan to live in the property?  A brother, sister, friend or fellow real estate investor.

3. Will the owner of the property enter into a seller carry transaction with you?  What do they want the terms to look like?

4. Team up with a co-borrower to increase your ability for a larger loan. 

It is all about the solutions where we think differently on every transaction.

What do you see others do not see.  The big money is made in solving the problems.  Pray for more problems to solve. LOL

I'm Glad You Asked.

Bret

Welcome to real estate investing Ted.

You can have incredible success in this business.

I know several great hard money sources in California.

Here are the requirements of most Hard Money lenders.

1. An accepted offer which is approximately 50% - 60% of what the property will sell for in 30 days after the repairs are completed to the neighborhood standard.

  a. The extent of the construction costs will determine the percentage of the loan amount.

  b. The money does not want to speak with us until there is accepted offer.

2. The borrower’s FICO credit score of 680 or better.

  a. If you have poor credit you can fix it.

  b. Some hard money will accept lower scores with higher interest rates.

  c.  You could use another person’s credit.

3. A detailed scope of work with an accurate bid from an experienced contractor.

4. The area. It is simple. Don’t buy properties where you will get shot.

5. Cash in the transaction.

  a. Your Cash

  b. Someone Else’s Cash

  c. Joint Venture Money, never a Partnership

d. Traditions IRA / 401K Funds

  e. Your Contractor

  f.  Your Grandmother

Next step is to have an accepted offer which will earn you and the hard money a nice income.

To Your Success.

I'm Glad You Asked.

Bret

Welcome to real estate investing Brittany.

I encourage you to begin with your local investor clubs in Salt Lake County.

A quick search on the internet will locate the meeting locations of the 3 active clubs in your area.

The real investors at the clubs are the investors who have property transactions to share with the group each time the club meets.

Your job at the meeting is to find the money.   Here is the conversation you should have with each member you meet.

• What types of properties do they purchase?
• How far below market value do they need to purchase the property?
• Do they have cash to close in 2 or 3 days or do they need to obtain funding?
• Do they have a cash limit cap on the price of a property they will purchase?

With this information you are able to connect to the players on the field in your market.

The best Title Company and Legal Team in Salt Lake County for closing investor transactions is 1st Liberty Title.  The will keep you safe and legal. 

Best of Success in your investing!!

I'm Glad You Asked.

Bret

Great Question Jennifer,

Heidi and I use the physical address of our the attorneys who are our Registered Agent in Nevada and In Utah.

It is part of our annual fee and they forward all mail to our USPS Post Office Box.

The Registered Agent is a great resource to keep your personal autonomy.

I'm Glad You Asked.

Bret

Welcome Davyona,

You are going to love real estate investing.

In answer to your question.

A first great place to do research is the map view of www.realtor.com 

This site allows you to identify the retail, ask prices for listed real estate in each area. 

Next,

1.  Identify the 12 zip or postal codes where you would like to work in your area.  2 rules.

a.  Do not work in an area where you would be shot.  Not joking.

b. Do not work in neighborhoods which exceed the area FHA cap or in the million dollar areas unless you have multi-millionaire friends you hang with frequently on a social basis.

Next you will move to placing offers.

I'm Glad You Asked.

Bret

Ouch!  Part of the fun of being a landlord Charles.  

There are other actions which should be searched.  Did she miss the meeting of creditors?  The entire filing could be void.  If she missed the meeting of creditors she could file again and include you in the next filing.

Successful investors in this business surround themselves with top legal professionals on their team.

It is time to contact your real estate attorney to take you through the rest of the maze to secure your interest.

I'm Glad You Asked.

Bret

Great question Dennis,

I encourage you to begin with your local investor club.

A quick search on the internet will locate the active clubs in your area.

The real investors at the club are the investors who have property transactions to share with the group each time the club meets.

Your job at the meeting is to find the money.  Here is the conversation you should have with each member you meet.

• What types of properties do they purchase?
• How far below market value do they need to purchase the property?
• Do they have cash to close in 2 or 3 days or do they need to obtain funding?
• Do they have a cash limit cap on the price of a property they will purchase?

With this information you are able to connect to the players on the field in your market.

I'm Glad You Asked.

Bret

Congrats Joseph on joining our ranks!

A couple of pointers from an old timer who has seen a lot of new investors come and go.

Number One.  Do not quit your job until your investment income replaces your employment income.

Unless you have a huge bank account of hundreds of thousands of dollars to live on.

Look at your job as your employer is kind enough to invest in your real estate.  Give them 110%

After work give your own business 200% by following the actions below.

The only action which makes money in this business is making offer and accepted offers.

The detailitis I see in your post will put you out of business fast.

You should interview 5 For Sale By Owners and Listing Agents per hour.

Out of 10 interviews you should have one good offer prospect. 

Out of 10 offers you should have one, maybe two good accepted offers in all markets.

It is about your skill, where you find properties and doing the numbers. 

You can be successful in this business when you only focus on money making actions. 

I'm Glad Your Asked.

Bret