All Forum Posts by: Amy Vasquez

Yes, that is all that is required to keep you legal with the state and you are allowed to run a business set up like that. BUT, it does absolutely nothing for you if someone hurts themselves on your jobsite and comes after you... and your personal residence, and whatever else you own. With an LLC, they only have access to the investment property, NOT the home you live in. Why put that at risk? The cost of setting up an LLC is $200-$300 if you do it yourself.

This is for my state but it will give you the basic idea of how setting up the LLC is done http://keytlaw.com/az/formllc.htm There's some great info on the site that is applicable to all LLCs/Corps. And no, I am not affilliated with them, just greatful for the (free) step by step instructions I used to form my LLCs.

well?

I whole heartedly cast a second vote for "Secrets of the Millionaire Mind" by T. Harv Eker.

It is a no BS, say it like it is, no patting your *** kind of book. It tells you what you're doing wrong and how to change. It helped me to understand so many reasons WHY my life (financial, personal) is the way it is, that it is ALL my doing and most importantly, what I can do to change it!

I checked it out from the library as I do with most books I read, but then I had to actally BUY this one. It was that good. I'm reading it for a second time. I think I will start over as soon as I am done.

Also good is Think and Grow Rich and Rich Dad Poor Dad

Excellent Post! I started to copy a sentence but then realized I really need to copy the whole paragraph!

Then I read the rest of the posst and damned if I didn't need to copy the WHOLE THING. Thank you for the great post!

There has to be a reason for the variation.

Are the more expensive houses newer? Do they have 3 car garages where the cheaper ones have 1 car carports? Are the homes better kept up on one street? Are the cheaper homes backing a freeway, RR track or other undesirable aree? OR, are the expensive ones backing a lake, park or other desirable area? Maybe the expensive ones have HUGE lots?

Best thing to do is go drive through the neighborhood and note those differences. Then get inside and see. Do the cheap houses have cheap counters/fixtures while the more expensive ones have granite, and top of the line fixtures?

Your comps have to be from COMPARABLE houses. Year, build quality, beds/baths/parking/lot size

so, Ewilliams, what state ARE you in?

jbalinvest - I wasn't trying to attack you. Just trying to be very clear. Hope I didn't come off wrong.

You stated
ARV = FMV - repairs.

It should be
ARV = FMV

The After Repairs Value is what the eventual selling price is expected to be based on the comps. The value is what it is. Repair costs are not factored into determining this SELLING price.

Repair costs are only used to determine the BUYING price. My formula for buying is to pay 70% of what the house will sell for less repairs. (IE 100k house would have a max purchase price of 70k if no repairs needed. If it needed 10k in repairs, the max purchase price would be 60k)

In looking at buying these deals from a wholesaler, the only one that makes sense to me using that formula is deal #3

Did nobody break out with their calculators or am I just crazy? Seems like the only good "potential purchase price" is on deal 3.

I am curious as to why deal 3 has the ARV calculated down to the EXACT dollar? Did you have some sort of averaging formula using the comps?

Here's what I see:

Deal 1
$282562 ARV
$197793 (70% ARV)
$17000 less comps
$180793 PURCHASE PRICE (PP of 195=too much)
And that doesn't take into account the 10k assign fee.

Deal 2
$261601 ARV
$13120 (70% ARV)
$17000 less repairs
$166120 PURCHASE PRICE (PP of 180=too much)
Again, assign fee not factored which makes it worse.

Deal 3
$315000
$220500 (70% ARV)
$10000 less repairs
$210500 PURCHASE PRICE (PP of 190 with be AWESOME!)
Assign fee not factored but I'd want to buy this from you if you are in AZ.

I hope I am not coming off as harsh, I just really want to know and learn

keep that positive outlook and you WILL come out on top... just as you said yourself.

Thank you for sharing!

See, thats the thing. Everybody has different methods that work for them. I'm also looking for that first deal. I used the library ALOT, loved the Kiyosaki series, no guru seminars, joined local reiclub which is EXCELLENT, did and still do lots of puruzing (sp?) through the internet (this site and reiclub are what I go to most)

You just need to start going through everything. Soon you will find what works for you. THen you can get your plan together (5,4,3,2,1 year plans and most important, how to get to that first deal!!) I have found that I needed to figure out what was getting in my way of going out and finding that first deal. Now that I have identified those things, I am making a plan of DAILY things to do that will get me to my goals (starting with that first deal)

THe great and terrible thing about REI is that there is SO much information out there. Just get started sifting through it!