All Forum Posts by: Dan V.

 Thank you David! You brought up some really good points as well. I will make sure to mention it in our next discussion on how to move forward. I appreciate you sharing your expertise on this type of situation. 

@Jonathan Jordan Quickbooks is a generic software, it can be geared toward almost any type of business. You just need to set it up, right to get the most out of it, just like any other software. I only used QB, so I'm biased. I recommend QBO Plus version for multiple properties. 

I see you are from VA Beach. It's nice to see folks in our area! :)

That's one of the cons I thought of as well especially, I don't know anything about the company. Thank you for the input Michael, I appreciate it!

I will be partnering with another investor to buy a mobile home park. We initially talked about forming a new joint venture LLC to acquire the property but he's proposing to buy or take over the company that owns the property instead. His point is that the company was already established (1973) which might help us get favorable financing options as both of us are newbies 1-2 years experience. The company used to own multiple businesses but the park is the only property left and will probably dissolve once sold. I think the company is set as S-corp. For anyone who had done this before, what are the pros and cons of taking over the company versus forming a new one?

We will be talking to our attorney soon but just wanted to get some opinions in here. Any tips on what to look out for when doing the due diligence about the company will be appreciated as well. 

 Thank you Joshua? Do you work with Shawn Bowen? I talked to him personally when I attended one of his Sunday strategy sessions and found out about the lending program. I have you in mind in case I need funding on my next deal. 

I know it’s city/county specific but for flippers out there, how much are you paying for your business license? My city requires you to submit gross receipts and fee is calculated at $0.16 per $100, and city said gross receipts is the sales price. So I sold $250k house I have to pay $400 when I renew my business license. Does that sound right?

Investment Info:

Townhouse fix & flip investment in Virginia Beach.

Purchase price: $142,500
Cash invested: $30,000
Sale price: $238,000

Contributors:
Sierra Alderman

This is my second flip property. This is a quick one, rehabbed in 4 weeks and got it under contract over the asking price within 3 days in the market! 2 months turnaround time from buying to selling!

What made you interested in investing in this type of deal?

The property was in good condition and in a good location.

How did you find this deal and how did you negotiate it?

Thru a wholesaler. I went with the wholesaler on his appointment to see the property. After the walkthrough, I told him how much I'm going to buy it for and negotiated the price from there.

How did you finance this deal?

Hard money lender, 50% of the DP from private money lender, the rest from my own funds.

How did you add value to the deal?

Updated the kitchen and both bathrooms. I also bought all the materials so I was able to pick the finish I like.

What was the outcome?

I was able to flip it in 2 months (from buying to selling it) and made a very good return. I spent a little over the budget (as usual) but was able to recoup it by selling it above the asking price. Got multiple offers but the one I picked offered $21K over the asking price, no closing costs assistance, will give me $1K closing assistance, and will requests major or safety hazard repairs only. We did not aim for a high price but countered to give us a guaranteed price instead, in case the appraisal comes back lower.

Lessons learned? Challenges?

I decided that I will buy most of the materials this time. This gave me better control over the budget and the finish. I had an issue with another contractor (cheap but inefficient) so instead of saving, it ended up costing me more.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used the same agent who got me started with this journey! She's amazing and knows how to play the game! This is our second project together but I'm sure there will be more! Cheers! I also used a hard money lender I found thru a Facebook group.

@Sean Delagrange I see people naming the LLC by the street address (ie. 123 Abc St LLC), but they intend to put each property under separate LLC. Investments and properties are most common for real estate, I think. You can use DBA later once you decided to brand your company or came up with a better name.

@Jordan Harper Yes, I strongly recommend separate bank and/or credit card for your real estate business and process ALL transactions thru those accounts. It's easier to track transactions that way. It's easy to open a bank account, so take the time and do it right. Commingling is a no-no.

Sweet deal! Congratulations!