All Forum Posts by: Account Closed

@Jay Hinrichs cool, thank you for your input

@Anthony Gayden haha. My wife and I downsized from a 1900 SF apartment to a 900 SF studio apartment in the middle of Atlanta. I don't think taking a few more SF away would be that big of a transition for us!

@Elizabeth Wilson both! We are looking to run our "home business" from our tiny house but know that it will only be temporary. We plan to keep the tiny house after we build our house and see how renting it out on Airbnb goes.

To clarify to my initial question, our business model is kind of irrelevant. I mainly wanted to know if anyone was actually living in a tiny home and what issues anyone was going through with that. A good follow up question (which wasn't mentioned earlier) would be to ask if anyone travels the country while running an investment business.

So this is an idea that my wife and I have been bouncing around for the last couple of months. We are new to investing and looking for some rental properties. Preferably we would like to start out with short term/Airbnb rentals, and long term depending on the area, if a deal comes up.

I wanted to know if anyone out there is currently living in a tiny house while running their business and if they are, any complications that they are running into. The good, bad, ugly, etc. I understand you have to comply with zoning regulations but surprisingly there are a decent amount of websites that already have the road mapped out for most of where you can go.

My wife and I have family all over the south east and we would like to restrict our investments to the same area (for now).

Any thoughts, comments, questions, experience, please feel free to post below!

Thanks,

Ethan

Thank you, @Elizabeth Wilson!

Is this a rental deal? I recommend running it through the BP calculator. That's why it is there!

You put in your offer with any agent, depends on if you're working with one or not. A listing agent is more likely to work with you because it's their listing. They will either accept, decline, or counter. All negotiations will be with the realtor as the middle man. Some require proof of funds with offers, I recommend you google best transaction funding. You will not need to put money into escrow until your offer is accepted.

Put together good numbers. It's that simple. It's common that in every market, investors have dealt with wholesalers that increase the ARVs and decrease the repair costs in order to make the deal look more appealing to someone that can't point out the difference. In order to be a great wholesaler you have to first understand two of your most valuable skills: negotiations, and marketing. First and foremost, you have to understand the needs of your clients. This is the seller and rehab buyer. Obviously there are details about the seller that you need to know in order to piece together a good deal for your buyers. Go into every deal as if you were going to rehab it. Run the numbers and come up with your own ROI or profit. If those numbers are what you would want as a rehabber, then that is your starting point. Anything lower than that, is your "wholesale fee". Obviously the numbers are going to dictate a lot of this in how far you are willing to negotiate, and you have to be reasonable to the seller. Remember, if one person loses in a deal, it's not a deal. My point being, if you are a rehabber and are negotiating with sellers, you have to be good. If you are a wholesaler, you have to be better. You cannot, as a wholesaler, buy properties at a price that would only work for a rehab and try to wholesale it. Be honest with yourself when running numbers, because this can make a huge impact on your reputation. If you need to hire contractors to give you quotes to estimate repairs, do that. While you're at it, in your wholesale presentations, add their contact info. You're helping out everyone in the process. As for calculating ARVs, if you're unsure about that, learn from someone who knows how to do this, or ask a realtor. This is free information. Lastly is marketing. Put together something that is attractive to the eye, a one page document that takes only seconds to look over. Only show the basic information (Neighborhood or Zip code, Purchase price, rehab cost, ARV, and comps. If you are running numbers as a rental, then add those in there as well). If someone is truly interested, they will ask more questions. At the end of the day, as a wholesaler, you have to ask yourself: "Would I take this deal if I am unable to sell it?"

@Brandon Graves I'm not sure about the lien portion of the S corp. I've never heard that, but that could also be specific to the passive income LLC. They may follow different regulations than active income LLCs as they are in a different tax bracket.

Jason Tucker wholesaling is going to be illegal in GA? Do you have any more information on this?