All Forum Posts by: Jamie Parker

I received a call from a seller that is interested in selling their property. The seller has recently closed on a new home and are motivated to sell. They also are interested in listing the property if it does not sell within the next month. The subject property is free and clear. As a wholesaler I am interested in picking up 1 or 2 rentals this year. How ever I am early in my investing career and do not currently have the capital to buy the property cash.

2/1 

82x100 lot

R6 Zoning

in a new construction part of town. 

The question is:

1: Lease option the property and sublet the lease option to renter(s) over a period of time with the option to buy in 3-7 years. 

Pros: The seller makes an income on the property. I make an income on the property and gain experience as a landlord. Eventually sell the property to a lease option renter making the difference on the appreciation of the property in the market. 

Cons: I have not rented a property and have no experience. Typical cons of rental properties as I do not have any money saved but have an income paying job. A capital expense(roof A/c, etc.) could effect my ability to properly manage the property and cover major expenses. Not being able to find a renter to buy the property during the lease option period. 

2. Subject to, same as Lease Option but longer terms to pay off purchase price. 

Cons: More risk because of length to also not able to put down huge down pay to get terms low enough to influence cash flow. 

3. Buy cash, In a cash situation I will wholesale to a builder. 

Cons: Not being able to partake in the income flow of a rental property situation. 

Last Question: 

Based on lot size and zoning this property should by purchased around 150k-200k if the builder has a plan for the odd shaped lot. Flat lots in the same area are 50x150 are selling for 180-230 in the area. 

Subject to/Lease Option as a rental what would the price range be. (commonly Landlords can pay more). 

Any help would be beneficial.  I walk the property next week and plan to present an offer. I thought it best to not negotiate before at least taking a look at the property. 

Thanks 

@Brent Warren @Daniel Highsmith is are you guys interested in all of summer/Robertson  county near towns? 

I am a wholesaler in the area. I would be interested in having a sit down chat about real estate.

on the legal side of things i was under the impression that if all your holdings in an LLC could be taken. The benefit is if you hold 10 properties and divided them into 5 LLCs. 2 per entity. If one entity was sued then you would be able to protect the other 8 versus potentially losing all of them if you held them in your own name or in 1 LLC.

that's awesome. Pm sent @Roger Poulin thanks everyone for the input and feedback. 

@Brandon Hall I'll will do that. I just thought I needed to have my expectations in order before going in and speaking with someone. 

Ned Carey because of my w-2 income; if I made 30k in additional income that would put me in a 28%-33% tax bracket. But if I separated my income from the entity I assume an LLC would get a flat tax of 30% but that would be separated from my W-2 income allowing me to balance my accounts separately. I greatly appreciate the feedback.

David Dachtera Robert Herrera Ned Carey I appreciate the input. The reason I am think more intently on my options in this matter is that I also plan to cherry pick my wholesale leads to acquire rentals and flip opportunities. Since it it hard to determine when flip and rental opportunities will come, should I look toward getting a tax ID number or creating an entity now. Or wait till I have a something that fits that criteria first then form an entity to place these holdings in for legal protection?

As an wholesaler, when is it smart to decide to form a LLC? Do I wait to build traction in the business or should start one right away. The purpose for this question is due to the tax benefits that may come with an entity. If I were to claim everything I earn as additional income I would be paying more taxes come tax time. I would like to get some clarity and more understanding in this area. Any thoughts?

Robert Armstrong what branch are you in? I'm active duty navy myself. I'm a navy recruiter in Nashville currently. I use my weekends and time after work primarily to do my real estate activities. I heard the latest podcast with @Tom Krol, he mentioned that was one of his first deals. How far do you want to take MHPs as an investment vehicle?