All Forum Posts by: Dave Versch

Please send info on this property. 

Hi Kris,

    Just left you voice message.  Please give me a call regarding this property.

Thanks @Steve Wilcox.  That was extremely helpful!

Hi.  I'm looking for single family properties in NJ to renovate and flip.  I'll pay cash and close fast.  PM me if interested.  Thanks!

Thanks for the pointers Jay.  As for the pitch, basically I can offer them relatively quick and painless way out of their financial difficulty.  I want to find out their names, the address of the property, why they're looking to sell, the condition of the house, and of course, how much they want. 

Anything else?

Hi. I"m looking for ways to find cheap houses to rehab and flip in my area.  Has anyone had success putting up those "We Buy Houses" signs?

Thanks.

Hi,

I have several properties I'm considering making offers on for my first flip. I've been very thorough with my numbers, gotten estimates from qualified contractors, and I'm confident that I'll be able to make a reasonable profit IF any of my offers are accepted. I'm in NJ, and mostly I'm dealing with REO's which have been vacant with utilities turned off for various lengths of time. My biggest question at this point has to do with how and when to get gas, water, and electricity turned on. I assume everything needs to be turned on prior to inspection, but how do i know that the house isn't going to explode when the gas comes on, or become flooded when the water comes on, or burn to the ground once the electricity comes on?

   Do the various utilities send people out when they turn things on to make sure nothing goes wrong?  Does the property inspector arrange for this with the utility companies?  I'm at a loss as to how to proceed in this regard, and any help from experienced flippers in NJ would be greatly appreciated.

Thanks!

I'm considering investing with a partner.  

Here's the plan:

Since we each own our own single proprietor LLC (let's call them LLCDave and LLCJoe), we are planning on creating a new LLC (123 Main LLC) for the purchase of this property, in which LLCDave and LLCJoe will each hold a 50% stake.

At some time in the near future (assume this is a flip) we will sell this property and dissolve 123 Main LLC. At that point, net profit will be split between LLCDave and LLCJoe.

Here are my questions:

1) What do we need to have in place prior to making an offer on a property? We don't want to go through the trouble of forming 123 Main LLC, opening up a bank account, etc, if our offer for 123 Main St doesn't get accepted. So how is this usually done?

2) How will 123 Main LLC be taxed, and what tax forms need to be filed for that entity? My own LLC (LLCDave) gets the passthrough treatment since it's a single proprietor LLC, but what about 123 Main St LLC? And who actually does the filing with the IRS (Dave or Joe) if tax time comes around and 123 Main LLC is no longer in existence?

3) My prospective partner and I don't really know each other. We were introduced recently by someone who knew of our mutual interest in real estate investing. Is it common practice in this type of situation to (a) have some sort of partnership agreement, even though our ownership percentages will be listed in the LLC agreement, and to (b) have the bank require both our signatures on any checks written against the account?

Also, feel free to answer any questions I didn't ask, but should have.

Thanks,

Dave

@Brian Eastman Does it matter at all if it's a "checkbook" SD IRA LLC?

Doesn't it depend somewhat on how many transactions you do in a year?  I was under the impression that if you only did one or two per year it was ok.  

Also, on a separate note, would tax lien investing be considered passive income?