All Forum Posts by: Charles Whitaker

You might want to also look into a Limited Partnership(LP) which limits the investors role and liability from business activities but could leave you, the general partner, at risk. A newer form of an LP is a Limited Liabilty Limited Partnership(LLLP) which could be of interest. The main difference being that the general partner has a limited liabilty just like the limited partner. Many states have not adopted this new modifiation so due diligence is required.

I hope that you have alot of construction or contractor experience for this potential deal. With 3200 square feet of building to completely remodel your repair estimate better be dead on or really close.

With that said price is the most important question along with terms of sale. I would also ask about the condition of the foundation and utilities. Sometimes you can find out more from the owners than when you are performing your inspection.

Best of luck

Ryan,

Great advice. I would say that roughly 90% of the referrals for abandoned properties are ones that I have already scoped out. Problem being that I hardly ever research them. Maybe I'll start selling you lists.

Nice hearing from you

I would be skeptical myself; partnerships come in many different forms but only use one that is structured the way YOU want. I would partner with someone that had the money but no experience or someone with construction experience and no money. I would partner with someone that can find deals but can't move them, etc. The use of the word partner here refers to either a one time partnership on a house or a limited partnership of some sort.

I would not share my business plan to someone like that without knowing them or what their interests are. Check into it, could be an opportunity in disguise but be wary of man's greedy ways.

Best of luck

I know that each person has their own opinions about their money but how much do you allocate when reinvesting? Also, what do you pay yourself out of profits? I would like to know what others are doing and trend from there. At the moment I reinvest the maximum amount and pay myself very minimally. Opinions please

I currently have a house where the line voltage on three different circuits is ~190V. 120V between hot and neutral and 60V between neutral and ground. Someone wired circuits together, anyways, my bulbs last a few days, maybe a week with this configuration.

I personally like the flourescents; had the same ones at my house for two years now with no problems.

1. Read three more real estate educational books.

2. Find a better realtor to sell my rehabbed house.

3. Finish and market our other house which we are remodeling.

4. Continue to rehab the fourth house in my series and get at least half way through the remodel.

5. Clear my head and finish taxes for 07'

You don't like rentals, don't like flipping, and by flipping I think rehabs. If this is the case then start wholesaling properties. You can maintain a powerful position over each property, you don't do the work and you have relatively limited risks compared to other forms of REI. IMHO preforeclosures are but one method to obtain properties; by using multiple methods you would find more deals; the law of averages will work in your favor.

Best of luck

Matt,

The old adage, "breath" applies here, just slow down and focus on whats at hand. The learning curve will work in your favor, besides, you can't rush the setting of a foundation before you build on top of it.

Wholesaling includes "assignment contracts, double closings" and the such. IMO this would be the way for you to go for quick cash with little skin in the game. What is your experience level? Have you done any deals? These are crucial questions as to where to start.

A contract can be easily "flipped" to another investor for a small fee. You will either need a longer period of time for assignments or some cash upfront to close a property for a double closing. An asignable contract can be a bit tricky at first due to the fact that you are selling property that you do not own but you do save $ by avoiding the closing costs. A double closing requires either $ out of your pocket or the use of a hard money lender. Depending on location a lender will charge upfront points and include interest only payments that are due each month for the term of the loan.

It all depends on where you want to go next.

It all depends on the price range anticipated when you are finished. If this is a fairly cheap house (~30K) then I might leave it on the walls, otherwise, remove it completely. You didn't say whether the panels are glued or nailed. The nails come out easily with little patch work and often times the glue will sand down.

I also found that sometimes the look that you are going for (texture and no wall imperfections) is easier obtained by replacing all of the sheetrock in rooms that contain plaster which needs patching. Making a perfect patch in plaster is a skilled job, nothing I have the time for anyway :mrgreen:

Good luck