All Forum Posts by: Brian Van Pelt

Just remember
.  to collect the rent, fix any problems and repeat every month (wash rinse repeat every month)
. Buy - Lowe's Complete Home Improvement and Repair and read it once a month
. Stay away from random handymen - they charge random prices and eat all the cookies

@Ben Jespersen No offense intended, ....... but you asked "What would you guys do in this situation?"
Independent Contracting is not a job, It's a Business, you are literally going into business for yourself.
A job pays you a salary or a wage, You sign a W2 not a 1099 Form.  So yes you quit your job to open a business with 1 employee. And now you have 1 client the Flooring Company that pays you a commission based on how much 'stuff' you sell. That's why a lender needs 1 to 2 years of history as an independent contractor. 

I have been Self Employed in the same manner most of my life and would not change it for the world. It's an honorable and I daresay Noble Calling reserved only for the truly ambitious and dedicated people. I think at some point you get a watch or a button, I'm not sure which.

@Peter Tverdov

I know, I'm a bit unfiltered, It comes from raising too many kids, One day I'll write a book, It won't sell, but it'll give me something to level the kitchen table with.

Farming means consistently and regularly tending a specific neighborhood, you CANNOT skip or skimp on staying in touch. 

A good relationship is hard to replace. A realtor can create your mailing door knocking list and save you postage,mailing costs and shoe leather. They should be able to give you a targeted list of properties. Also a realtor should add value by selling your properties at a higher value. 

I handle the farming and mailings for my investor clients. It allows them to focus on rehabbing the properties. I mail,write and network with the "In the know" neighbors to keep informed as to local happenings. From time to time one of my investors will "graduate" to doing it on their own, but usually within a year they are back or doing considerably less rehabs.

Developing land is a long drawn out process, ore upfront costs, with more risk although a higher rate of return IF everything goes well
A rental property is a quick turnaround but slower ROI

I would research both, create a budget see which one fits your budget and risk tolerance.

@Josh Starner

I would consult a real estate accountant, as there are serious possible tax consequences to just rewriting an LLC.

@Blaine Knight

OK, Well Hello !

@Gustavo Mejia

Most RE down payments are either from:

. cash savings from Borrower
.  A Gift from relatives or friends
.  Seller contribution
.  a Loan from a lender that also offers a second mortgage 

@Anne Lewis

First off as a Landlord your last sentence could possibly land you in serious hot water and a lawsuit from either the Tenants,The NJ real estate board (whether you are a Realtor or not), The State of NJ and possible the Federal Govt. (I highly recommend you modify it or remove it entirely)

Anyone offering advice based on your post could also land them in trouble based on your last sentence.

FYI for everyone else. OPRA (Open Public Records Act)  is a NJ law, and may not be available in all states.

. Go back to your retail job and beg to be rehired.
. Never quit a job until I had a new job to replace it.
. Ask the flooring company to put you on the payroll.
.Ask for advice from competent people before making a life decision like quitting a W2 job for a IC position.
or 
Ask a friend of family member to purchase the house and you rent it from them for PITI plus 15% then after 1-2 years buy it from them. (Im good faith make improvements during the 1 to 2 years.)

Any realtor can provide you with a database file for tax records in a specific area for free. plus a realtor can give you valuable resale info for the same area.  If you use a realtor as a research assistant it doesn't hurt to either toss them a referral or if their state /broker allows, to pay for their time or gift them a dinner somewhere nice.