All Forum Posts by: Jason Kim

Anthony, I think the question you need to ask yourself is where do you prefer to live.  Both side of the county offers plenty of business, and living close to where your target area is very important to your real estate business in my opinion.  When you first start, I would join a company that offers great training and systems so you can start off to a right direction, and later on you can move to a boutique company where you think you and your business would benefit the most.  Once you get some deals going, I would recommend hiring yourself a coaching programs like Mike Ferry or Kevin Ward or Brian Buffini so you don't get sidetracked on your business. 

This was surprising so i did a google search and found this article.

http://www.repo-homes.com/blog/illinois-articles/banks-rehabbing-repo-homes-for-sale-to-attract-more-buyers/

Hello BP members,

I am studying hard to become a rehabber and here are some questions to ask to some of seasoned investors in this forum about private money.

I have enough money to fund one project to flip and I am currently working on the purchasing. Let's say that I finish the project few times my self and have made profits and gained confidents and knowledge, and wants to do few projects at once. If I were to ask for private money from people, I would show some of the projects I have done within certain timeline and also the profits I've made to show that I have the capability to do RE Investing.

Now when asking money from people, what are the normal promises(i know it's not the best word to choose) or offers when proposing to borrow?
People that I want to ask are normally who don't have much knowledge about RE investing, but have their own private business running and wanting to invest on the side.

- What are the normal percentages to offer?
- What is the timeline for project to finish and take profits?(I understnad that normal flips should take about 1-4months but when telling to private people, how much time should I buy from them?)
- What are the back up plans if the houses doesn't sell within the time I offered to them?
- Any other items that I should consider when offering to borrow?

Thank you in advance!

Steven thank you for your reply,
So I guess this CPA tried to make it sound like he's saving me
money getting them set up but in the end, he would charge me more than I should be paying and juice me out every year by charging me on extra fees..

I guess I am still looking for a CPA who maybe in real estate business, and also practice his accounting business in good faith. I would appreciate it if you would refer someone that I can consider.

Thank you all for your replies,
When I first talked to my accountant he asked me how I will be running my real estate business. And I said that in the beginning I will be flipping homes with my own fund, and later I will be flipping with few of investors money(money partner) doing multiple projects. And right after he told me that I should form different LLC for every project that I do with each investors for a possible law suit protection purpose. Now if I'm flipping homes every 3 to 4 months possibly couple of projects at once on a regular basis, I will be saving lot of money each time I'm setting up those LLC's under CO on every houses since it's cheaper he said. Then he told me to set up LLC names like "e.g.company name + address number, LLC" on every projects that I do. Do some investors do business like this??

And by the way, his office is with in the same building with some of real estate investment companies and they are very experienced people and have done real estate deals for a long time. And he has been their accountant for awhile so I'm assuming he knows what he is talking about according to his experience??

Thank you in advance.

Jon thank you for your reply. Yes the properties are going to be purchased also in Chicago and like you said, I will ask him about the foreign entity when forming the LLC.

So if the properties are purchased in out of Colorado LLC which is under Foreign Entity, are there any rules or laws that I have to be aware of? Are there any Big Differences between forming local entity and foreign entity when I'm buying properties localy?

My CPA is real estate friendly person and I'm sure he'll give me good advices on how to deal with taxes. I'm just trying to figure out if his first advise to me makes sense or not.

Hello BP Meembers,

I am currently in the process of setting up my LLC and my CPA told me to set it up under a different state LLC because it's much cheaper. I live in Chicago and he said that it costs around $500 to set up, and he also said to set up different LLC's if fix and flips are going to be partnered with someone. But if LLC is set up through Colorado, it only costs $150 to set up and I will be saving lot of money and the way the laws work will still be the same.

Is this really true and should I goahead and set it up that way?

Thank you in advance.

If you are looking for rental property in south of Chicago, I would suggest to go for cities which are more south of south side of Chicago. If you need some more advise, PM me and I can help you find some decent places to invest.

Thank you all for some great informations! especially from J Scott!

What's Better : Home Stager OR Home Designer?

If my budget is tight on flipping, I'd like to know which way is better to spend money on. I've talked to Home Stager and they said staging is more important I don't need a designer to design the house. And at the same time the Home Designer is saying that the actual color of the cabinet, floor, wall, window treatments are more important(having professionals to help can make things different) than just deorating house with furnitures.

Home Stager - They make the house look nicer when it's all staged. And the designs through out the house was done by me not by the professional.

Home Designer - They have the talent to make house look better than what normal people can do and it might help to sell the house quicker. But the house will not be staged.

I'm trying to just choose one to stay whinin the budget and still make the house look beautiful to sell. Please let me know what you think of it.

Thank you in advance!