All Forum Posts by: David Wiggers

Rob, have as much stuff in writing as possible on your arrangement.  It helps get a clear understanding of what expectations are and will help avoid misunderstandings.  Have a clear understanding of who is doing what on the deal.  Partnerships can be really good but open communication is the key to making it work.  Things will come up that you never even thought of so be ready to problem solve together.  

  I would think about paying him his profit through his construction company, just a thought.  

I have an s corp and I don't pay any capital gains on flip houses.  It is treated as ordinary income.  

1031 gets hard because it forces you to buy under a dead line and I think sometimes we can pay more then we want to just to save a few bucks in taxes.  

good luck, Dave

There are so many ways to get going in real estate investing.  I used a line of credit on my personal house to finance a purchase.  If you don't have the whole amount just use your equity to put down the 20-25% and take out a loan on the rest.  You may want to consider using a mortgage broker to help you pre qualify so you know what you can buy.  I always try to buy houses in good areas that lots of family can afford to rent,  1200-1800 sq ft houses.  I started investing 5 years ago and now have 8 houses with lots of positive cash flow.  Decide what your financial goals are then go after your goals.  It is very important to make sure the houses cash flow right away.  It does take some work to find the right deal but if you take action I know you will find a deal that will work.  Talk to everyone you know and let them know you are looking for a rental to buy.  You may find someone that wants to carry the loan for you, I bought my first house that way.  Go to your local realestate meetings and start talking to people and you will be amazed at what happens and what you will learn.  Good luck and enjoy the process.  Action=results

@Mike Nuss  what is debt management license?  I have never heard of that.

I think the deal is too skinny. An idea would be to see if you can find an investor to buy the property as it sits. Work out some deal with the seller so you can make some money for finding a buyer. The price of 270k plus rehab is getting too close to a retail price. that would be less then a 10% off a retail price if you were to fix and flip. You need to be at least 20% off retail. If the ARV is 350k, I would be offering around 225k with 25k in rehab. Just my opinion on the numbers.

Landmark professional mortgage.  They are brokers. I have used them to do several Brrr.

I have done this in salem and you will need the property to season for 6 months before you can refinance you money out.  After 6 months they will loan 75% of appraised amount.  

I have been investing in real estate in salem since 2010.  I started by building new on my first couple of houses and keeping them as rentals.  I have been a building contractor for 17 years so it was an easy thing for me to do and it made sense.  The 3rd house I kept needed a total remodel and it was gutted down to the studs.  That house was on a lot that could be partitioned and that is what attracted me to it.  But what I learned is that I could get a lot more leverage out of my time and buy at a bigger discount if I bought houses that needed lots of work.  This took me down a new road and I began to flip houses and have success.  My business partner and I have been able to flip about 1 house a month over the last year.  I was able to keep 2 of those houses last year.  I have vacant lots ready to build on but  I will pay retail prices to develop them.  The sweet spot has been buying houses that most investors, pass on, with the amount of repairs needed. I have out grown my lending sources and am looking for more money or strategic partners.  I am also interested in multi family housing.  I am not afraid of anything structural that is wrong with a house and I find that it gives me more opportunity to get a discount. Let me know if you have ideas or thoughts.  I now own 8 properties and want more.

Thanks, Dave 

Ask the seller if they will carry the whole loan.  You never know.  Then you don't have to deal with another lender.