All Forum Posts by: Mark J.

**UPDATE** Since I still get PMs and notifications about this post over three years after making it, I thought I'd post an update.

I've now successfully sold three properties FSBO. On my last flip, I used www.beycome.com which offers a flat-fee MLS listing for only $79. I tried the FSBO without an MLS listing for two weeks (just Zillow/Redfin/Trulia, Craigslist, etc.)-- but I found that was just a waste of time as buyer's agents actively steered clients away even though I was clear that I was offering a full commission. The nice thing about beycome.com is that the MLS listing appears as a standard broker listing. Agents have no idea it's FSBO.

If you're thinking of going FSBO-- there's a ton of advice and tools on BP and elsewhere to support you. Make sure you have a solid marketing plan, great staging, and that you have priced your property correctly. GO FOR IT!

Thank you @Account Closed Appreciate the clear, straight-forward answer. I will proceed that way.

Could you offer any details on specifically how the new tax code is a benefit to small business owners and how a part-time real estate investor like me could benefit?

Thanks!

Given the new tax code, are there any tax advantages to titling a flip property under a single-member LLC vs under my personal name?

Many thanks in advance!

Mark...

I'm working on building a solid credit and income history for my new single-member LLC. I'm ready to close on the purchase of a new rehab property that will be a flip. I'm thinking it would be best titled under the LLC name, particularly given the new LLC-friendly tax laws.

I've never titled an investment property under an LLC before, only my personal name. I plan to sell the property FSBO. Anyone see any complications or things I should be aware of when titling under an LLC?

Many thanks in advance!

Mark...

Joe-- I read every word of your "About Me" intro. You've got a belly full of fire, and that's gonna power you as you begin on this journey. 

What have you done beyond the keyboard?

I'm rooting for ya, Joe. Let me know if I can help in any way. 

A few action steps you can take immediately:

1)  EDUCATION & CONNECT: 

• Believe me, you haven't watched enough videos and books, BUT without any CONTEXT (which only comes from real-world experience) most of the information/knowledge you're consuming is LOST on you and the seeming immensity of it all is potentially weighing you down preventing you from taking any action at all.
• Mistakes are inevitable. Just accept that it's going to happen, but it's not the end of the road for you (unless you're the giving-up kind). When it comes to real estate, there's ALWAYS a silver-lining to every dark cloud. (and I say this as an avowed pessimist, bordering on misanthrope)
• Locate and attend local REIA meetings. Make connections via BP/Facebook/Reddit groups, etc. Gotta be in the park if you wanna meet the players.
• At only 20, TIME is on your side. Real estate investing is something you can do actively for the next 50-60 years. That's a span of time you can't even fathom at your age.

2)  BUILD a SOLID FINANCIAL FOUNDATION

• Get your credit score to >700 (there's a ton of info on how to build your credit anywhere on BP or Google)
• Obtain or continue earning W-2 income (this becomes important when you want to obtain a mortgage down the line)
• Pay down any bad (consumer) debt and don't pile on any additional bad debt.
• Start saving. Put some money away every month into your "capital acquisition" fund. Even if it only amounts to a few hundred or maybe a few thousand dollars in the whole year, you're building discipline. Besides, you'll need the cash.
• Try to obtain a Personal Line of Credit (unsecured) of at least $25K. Given your age, could be tough though.
  

3) FOCUS

• Start with ONE strategy and then adjust as you go along. For example, a house-hack is the way I started. Then moved into BRRRRs and a few flips. But I only focused on doing BRRRRs on SF or MF, not townhouses, condos, apts, mobile homes, etc.
• Given your age, finding and obtaining an owner-financed property may be a challenge, but it is do-able. 

Best of work (not luck) to you!

@Kristen Brooks -- yes, the snap together, inter-locking style. I'd never used the stick-down. The color was Clear Cherry. 

First question that comes to mind is-- are you experienced enough to manage a $60K renovation? That's a MAJOR renovation.

Next obvious question--- if the property needs that much renovation, it likely means that some of the work will need permitting and perhaps a planning review by the city or county. Have you factored that into your timeline? Do you have at least x3 bids from General Contractors?

With any renovation, mistakes are going to happen. They always do. And they're always costly. The less experienced the flipper, the more mistakes he'll make. The larger the renovation, the greater the potential for mistakes.  And the more expensive the project is, the costlier those mistakes are going to become. 

If your margins are thin at the planning stage, just wait until the execution stage. Personally, I'd encourage a first time flipper to start off with a smaller project. 

I need to setup an LLC in order to acquire a business line of credit. Probably being overly paranoid, but since FL requires the use of a physical street address not a PO Box, I'm wondering if using my personal residence as the primary business address would create a legal avenue to access my home in the event the LLC's assets are attacked.

I know some folks use a registered agent service, but wondering if that expense ($150-$250 per year) is necessary. Most commonly, people use the registered agent service for privacy reasons, but that's not really a concern of mine at this point.

Many thanks in advance for your responses!

Mark...

@Lane Forhetz - I thought Fannie Mae only gave 70% ARV or 100% of the purchase + closing costs (whichever is LOWER) with no seasoning (however you must refi within 30 days of purchase). Although 75% still wouldn't make the deal workable for me.