All Forum Posts by: David Oldenburg

@Robert Horton I know this is an old post, but just came across this in my business as well. I am a RE broker in Ca, but I do a lot of flipping and I am not covered with E&O Insurance on any of the deals where I have an ownership interest.

I have found the simple (not free) solution is to have a good business insurance (General Liability) because it covers legal defense and many other things about your business, including injury etc...  I would also recommend a good Umbrella policy that can cover you if your General Liability runs out.  

Remember, E&O Insurance is really covering the agent and not the flipper. As an example, let's say the agent discloses that the seller/flipper replaced the HVAC. They have done their duty in disclosing this fact. However, if the seller/flipper installed it themselves with no permits and it later caught fire, the liability between the agent and seller/flipper are very different.

It is for this reason, business insurance is a really good idea for house flippers!  In my state of CA, it is pretty easy to get sued!

You can watch this week's show here  Building A 7-Figure Wholesale Buyers List Fast .... We are doing a new live show each week.  In this one you can see how fast things can fall apart and how we recover in the first 60 seconds :-).  

@Justin Lac  Thank you for a great response!  I look forward to meeting you in person at the event.  There will be 50 to 75 people in the crowd from Bigger Pockets!  I know a lot of people from this site who attend my meetings!

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These events are FUN and very motivational and there is no selling! RSVP and details at http://RosevilleMeetup.com Make insane money, find way more deals, and have basically zero competition flipping, when you partner with the seller. In my 5 years of speaking at these events, I have NEVER talked about how exactly to do a Joint Venture with a seller, and why they are one of my favorite strategies. I can offer more money and better terms than almost any other investor, and still profit no matter what! You gotta know this strategy to be a player in the REI world! Plus "Equity Buyouts"...how to buy out an owner of a property and guarantee your profit, before the property has even been sold! This is how the pros do it!

Join me at the Rocklin Event Center (NOT WHITNEY OAKS!) with 500+ capacity and a big stage! Everyone has a great seat and this will be a big 1st of the year event! Bring your friends and family and remember everyone gets in for FREE!

I finally launched my YouTube show and it's done LIVE each week! You can watch and SUBSCRIBE at http://FlippingAcademy.com ... It's a great way to keep learning between the events I am doing at the Rocklin Event Center!

#realestate #realestateinvesting #flippingHouses #howtomakemoneyflippinghouses

David Oldenburg

Founder and Leader

Roseville Real Estate Investing Group

I'm a broker for 25 years in California and a full time flipper and wholesaler. I also run a 2,000+ member REI group for 5 years. Wholesaling is not at this point illegal in California. A wholesaler is NOT acting as a Realtor or Broker, they are acting as a BUYER...anyone can buy a home and anyone can enter into a contract. The potential area of concern is fraud. Entering into a contract with no money and no ability to buy if you cant assign your contract and need to back out. However, I have not yet met anyone or heard of anyone in California who has been successfully prosecuted for simply backing out of a contract within the contingency period. If you have a specific legal case where a wholesaler was prosecuted for nothing more than backing out, I would love to hear about it. With that said, realtors hate wholesalers I hear them complain constantly and there may come a time where wholesaling is specifically made illegal w out a license. I dont believe there are specific laws yet, but if you know of any please share your wisdom :-)

It would be great for someone with actual knowledge to post some case law.  There is a lot of copy and paste here of the IRS rules, which I think we all know if we have studied the subject of SDIRA's and Solo 401k's...

it would be helpful to know if anyone has ever survived an IRS audit and avoided UBIT who was wholesaling? I have heard great responses both for and against it, but no one who has been there and done it.  Has anyone here actually been audited and what were the actual results etc... and what did the IRS tell you in their findings?

I always check into new things like this because I run a 2,000 member REI group. From what I can tell there is nothing new, or cutting edge with "astro" flipping. A flip is a flip is a flip. There are many unique strategies that can help you buy with less money, increase ROI, rehab cheaper, etc... but it;s all been done many times before.

@Will Barnard Great to see you here!

@Jennifer Smith I would sell bank your ! money and split it. Family partnerships are tough on rental properties. Who does the work? Who pays for big repairs? Are splits equal if you have unequal money or time in the deal?

Take your part and go buy your own investment!

@William Thomas Never do a 15 year mortgage! I have been in lending and flipping for 30 years. I always tell my clients to never get a 15 year fixed. The rates arent that much lower and you can always make the 15 year payment, even if you have a 30.

Here is what happens... people go get a 15 and then financial hardship strikes and they need a lower payment again. Guess what? You can no longer qualify for the loan and your only option is to sell or foreclose. Get a 30 year, make the 15 year payment, and then go back to the 30 payment if you get in a financial bind... good luck!