All Forum Posts by: Curtis Waters

Join us as we discuss foreclosure situations, how to profit from them, finding foreclosures before the official sale, subject-to, and how to determine if you have a deal!

Michael - 

If a home costs you $135k then my guidelines say $1550 minimum rent.  Yes, this is hard to accomplish in Charlotte.  I see this though in Gastonia (where I have the majority of my rentals), where many renters work in Charlotte .

I feel that the probabilities are more fluid than what you have stated.

Most investors want at least a few face-to-face meetings before they will part with their funds.  There is a HUGE trust factor you must consider - not only in getting an investor to work with you, but in their evaluation of your integrity and ability to perform.  Your estimate of probability requires an honest evaluation on your part regarding the investor's evaluation of you.  You have to constantly ask questions during the process to do the evaluation on your part.  Once an investor is satisfied with the return and risk - they bet on you and your team's ability to perform.

Don't discount the issues with passive investors.   Not only are they time intensive once they have provided funds - you may face some issues with the SEC.  One way to potentially avoid this issue is to have a passive investor provide their funds via a mortgage on the property.

This business is not just about the financials - it is also people skills, building knowledge, and ability to act -  not science but an art.  Make sure that your people and sales skills meet the needs of investors.

@Daniil Grinchak - Fix & flips are considered inventory in your business.  When you sell the home you take it out of your inventory and the property gain or loss is considered ordinary income (I am not a CPA but previously a registered tax preparer).  I recommend you confirm with a CPA.  I recommend a CPA who also owns real estate - Eric Little at http://mycarolinacpa.com.

You are probably thinking of a 1031 Tax Free exchange.  See this article - 1031 Exchange.  The requirements require you to have the property more than 1 year (which will kill most flips financially) and is primarily focused on buy and hold properties.

@Matt Varga - I facilitate many meetings of Hobby Millionaire Charlotte - you can find our schedule on meetup.com.  We have many buy & hold investors and sellers at our meetings.  Meetings are 4 times each week and are free to attend.

@Mike Nowicki - would love to see you at Hobby Millionaire Charlotte meetings.  We meet 4 times each week.  Find us on meetup.com

Contact me if I can assist in Charlotte.

Being in Charlotte I have some bias.  Here is a list from Forbes - you might disagree with their criteria however.  I look for value and job growth.  Jobs drive continued rental demand.

Ask the bank to name the account with your name or biz name plus 'Escrow Account'.  Many banks see Trust in the name requiring a Trust agreement.

Keep in mind most states require all landlords & property managers to keep security deposits separate because these funds are considered owned by your tenants - in your care.

I am licensed in both NC & SC.  Plus an active investor.