All Forum Posts by: Brett Russell

@Mark Forest , doesn't the "label" feature of gmail work just like your folders?  You can manually label any email or set up rules to automatically label them.  You can nest labels within other labels.

The big thing that you're missing, based on my reading, is tax treatment. According to the Rich Dad Advisor books (as well as other talks I've heard on the topic), if you are just doing passive buy and hold, then an LLC is probably best. However, if you are doing anything "active" such as flipping or wholesaling, you want to do S-corp (alternatively you can file your LLC to have S-corp tax treatment) because you don't want to have to pay self employment tax on all the profit. You can take a reasonably salary, which is subject to self employment tax, and then disburse the remaining profits free of that tax. So you could have tax savings there.

Best to discuss each individual's situation with an accountant and/or attorney.

@J. Martin , your first 2 steps can be consolidated into simply clicking on the house icon on the left side of the blue navigation bar.  

@Nathan Hickman , I haven't gotten that far in Brandon's book, but I suspect he said that you could get transactional funding to take possession of a property for a very short time before you resell it to the end buyer.  But many people just do the assignment you mentioned in which they basically are removed from the big transfer of cash.  So, you get your assignment fee in exchange for giving the contract to the end buyer and he/she gives the cash to the seller.

Hope I understood your question and cleared it up.  

@Sergey Tkachev , the thinking I've seen most people have is that lots of investor purchases means investors like that area and would presumably want to buy more, so focus on those areas.  

@Ryan Zweng @Jeff Jamieson @Sergey Tkachev , I actually just saw a video from Joe McCall about this very subject.  So, I can't take credit for it.  

Basically, you use listsource to find the most active zip codes for investors without ever buying the list.  I believe you do need to create a listsource account, though.

--Sign in and choose a premade list by choosing Investor--> Absentee.  This will give cash as well as financed sales made to absentee owners.

-- Choose your county and then if wanted property type (i.e. SFR, duplex, etc) and last sale price.

--Then specify last recording date of 6, 9 or 12 months (whatever seems appropriate).   He recommended 6 months, but numbers were really low where I was looking, so I did 12 months.

--Likely should put "no preference" to the corporate owned selection so it includes LLC purchases

-- Click purchase list, but on the checkout screen, choose "partial list" and the you can sort custom by zip code.  You can then export that table (zip code and number of sales) via email to yourself.  (and you never have to purchase anything)

Now, you can use the table to determine which zip codes have the most activity.

Hope that helps.

@Royce Talbo , people who are doing wholesaling right are finding off market deals by marketing directly to potential sellers. In that case, there are no requirements for POF or pre qualification. You sign a purchase agreement and can then assign that to someone who has the experience/resources/money to do a full flip.

@Alex Russo 

This is absolutely wrong.  You are encouraging someone to violate a contract they have with the agent.

Would it be okay for your end buyer to go up to that homeowner and tell them to cut you, the wholesaler, out of the equation to save some money?  

Of course not.  Same thing with cutting out the agent.

Just don't do it.

My $0.02

@Weis Sherdel , do a search of the forums... lots of discussions about this subject already.

@Account Closed , I would be really careful with Jackson.  I work there and have been tempted many times by potential deals there, but have realized they will be extremely high maintenance tenants and properties.  The economy there just doesn't seem stable at all.

In my explorations, I talked to one property manager who said she was selling everything in the city itself partially because the city has instituted expensive rental registry/inspections.  

Not saying it can't be profitable, but expect a lot of expenses.

I'd say to definitely avoid the area directly south of downtown.