All Forum Posts by: Heath Ryans

@Brian Armstrong look in the fileplace. All you need is a standard Purchase and Sell Agreement. I'm pretty sure you can buy them in Office Stores as well. They can be as basic and straightforward or complex as you like.

@Andrew Zannotti it all depends on the bank. Every bank has their own requirements. Some say 1 year before you can refi, some say 6 months, some say the day you close. Just shop around. Find someone who's programs fit your needs. Also, look at your hard money and make sure you won't get hit with a prepayment penalty.

@Matt D'Arco

I haven't done it yet personally, although it's been brought up. Once I get a deal that I can't take down myself, I know exactly who I'm going to go to first to partner with. It's a pretty simple process. Find someone you want to partner with who understands that they are bringing most if not all of the money to the deal that you found, decide on profit/equity splits (50/50, 60/40, ect), then have an attorney create a LLC for the two of you with a very detailed Operating Agreement so that it leaves nothing up for debate if an issue were to come up. Then purchase the deal.

It's a great strategy for people of all experience levels, but especially when your just starting out and either don't have the money or a full working understanding of how the investment side operates. It allows you to get in with no money with a front row seat for learning operations. The value you bring is in the deal. So it has to be a good one. Otherwise it's just a lot of work and risk for the other investor IF they even decide to come on board.

@Matt D'Arco

Without reading the article, it sounds like all he's saying is get some partners to take down the deal. Basically, you find a deal and bring it to another investor or someone with money and offer them a percentage of the profits. You go in together and form an LLC and buy the deal. People do it every day.

if you create an LLC and start "selling shares" then im pretty positive that makes it a security and that opens up a whole other expensive legal can of worms.

@Christa S Rickard 

Cap rates are area specific, yes. But there is generally a range. 1% or so of flex. It depends on location (which you said is the same) and the overall condition of the property. If its a nicer property, you could base its valuation off a lower cap rate because there is less risk (theoretically). On the flip side, if a property needs some work or anything that would imply more risk, it would likely be valued based off a higher cap rate. 

If the location and condition is mostly identical, then it's really just owner/agent discretion at how they manipulate the cap rate to get their valuation.

@Austin Hughes man, that's awesome. Congrats on the success. I like the simple and logical breakdown of your progression. 

I keep forgetting about the affordability and ease of mobile homes. I might have to hit a few of them after I get the current project refi'd. 

@Constance Grandelli oh nice! take good notes for me and I'll bring back a picture of the beach for ya.

Come join the Tri-Cities REI group for our June meeting. This will be a break from speakers for a networking meeting. It will be a great time to just sit down and network.

tags: Kingsport, Johnson City, Bristol, Elizabethton, Erwin, Asheville, North Carolina, NC, TN, Gray, Jonesborough, Church Hill, Bloomingdale, Greenville, Sevierville, Knoxville, Tennessee, Virginia, Gate City

@Bret Kennedy I don't understand your position in this situation. You can't fire the owner of a property? You can fire a property manager, but not the owner.

@Jeff Meszaros

Common misconception with wholesaling is that it's an easy thing to dabble in and make money. That cannot be further from the truth. If you want to be successful, especially starting out, it's a full time gig plus more. It's a ton of marketing, being on the phone, driving, doing walkthroughs, and negotiating if you want to find deals that investors will actually buy.

If having a second full time job doesn't scare you, (and this is only my opinion - therefore not legal advice) When you are starting out wholesaling, I think creating an LLC would be a big expense and complication that you don't need. It would be perfectly fine to do it under your personal name.

If you still decide to create an LLC, you can go one of two ways. Either go online and create it on one of the online platforms (easiest, cheapest, but least legal protection as they are pretty cookie cutter) OR hire an attorney to set it up (most expensive, more involved, high level of legal protection)

As far as social media goes, if your create an LLC, use the name of it. (mine is @highresinvests on both IG and FB). If you don't create one, use your own name but make it clear what you do.

Don't worry so much about being perfect. Worry about getting started.