All Forum Posts by: Dave D.

Thanks one and all! I like choices and will try out whats been suggested. 

Great help all - Thank you!

I've heard a few BP posters reference HGTV software for design. The HDTV 'instructional' videos seem to be anything but, so the skeptic in me wonders what else is around vs HDTV?

I'm looking for something that can do something as simple as diagram a purchased home. Helping to configure room expansion with walls removed and design help would be nice too.

What do you use and how do you like it?

@ Anthony Hill - What do you see as the benefits of this property/scenario vs others? Why is it attractive to you?

How many others have you looked at?

What are your goals?

What criteria have you established for your business?

Do you have a disaster recovery plan (and I don't mean natural disasters - but you should have one of those too!)

There's a reason seasoned professional advise not to rent to family. It's only advice, I understand. At the same time, you're only on your first deal and as good intentions as you may have, "you don't know what you don't know". It may be that unforeseen things happen and you don't (can't) live up to her expectations.

@Joshua Dorkin Great to know! Thanks :)

@James Wise - I don't use my full name because I may need to ask a sensitive question about a tenant or my partnership or one of my contractors or a deal. In fact - I've NOT asked a few questions because of my concern over who might read it and "connect the dots". I've written to the site administrators about this very issue,

I'm proud of the 4 properties I've financed and my partner and I have refurbished and sold in less than a year and the three we're working on now. We don't do shady work and we don't like the connotations the term 'flip' conjures up - probably like many on here.

I can appreciate your concern for some of us not using full names – but it may be for reasons other than suspected. Not using a full name in and of itself does not make a shady player.

In the case of Indiana - The sheriff serves the occupants notices within the time allowed by law and they are to be out by the time of the sheriff's sale. So for us, it's very black and white. Did your sheriff do the same?

John - sounds like you're making the right moves by getting things in writing. As Tiffany (and others) have pointed out, you really need to have everything spelled out for your project/partnership. Expect the unexpected - you need to ask yourself what if the project goes over the initial investment and timeline. Expect those things to happen so you're prepared financially and not caught out. Since you're out of State, it sounds like you will be mostly hands off on the day to day decisions. If there are decisions you want to be involved in, be sure these are spelled out. It's a very good idea to have the boundaries of your agreement clearly spelled out

In my partnership, we have an operating agreement that we have amended as needed. We also have a complex LLC contract. Since I'm funding the projects - I also am paid monthly interest, on top of whatever profit (or loss) our projects make. We also stipulate that any individual purchase or sale over $5,000 needs to have both our signatures.

Good luck, you've gotten some very sound advice from several posters.

Good luck Kyle! Subscribed to thread.

Josh - just so I'm clear.

You're putting into the deal 50k, on which you'll get 20% interest for the term of the project - or just 6 months?

In addition to the interest, you'll get 25% of the profit from the deal. If there's a loss, will it also be a 75/25% split?

Will all costs - holding, acquisition, taxes, materials, labor, etc be covered by the initial $100,000 of the partnership investment? If not, how will additional funds be requsistioned?

Just wondering if anyone has filled for (and gotten) a Cert of Discharge for a Fed Tax Lien on a foreclosed property they've purchased?

I recently picked up another property at a Sheriffs sale (foreclosure) and the house has a sizable IRS lien. I understand the IRS has 120 days to reclaim the property - very unlikely under normal conditions - even more so with the large hole in the roof of this property. But I'm wondering about applying for a Certificate of Discharge. In one sense, I don't want to wake a sleeping giant, on the other, I'd like to get to work on the project. Someone at the US Attorneys office

Thanks!

DD