All Forum Posts by: Jason Rhine

Has anyone ever assigned a wholesale contract to the tenants living in the property? Does it make sense if they have financing approved?

A lot of people do not appreciate cold calling. Even if you leave a message, an audio message is a very difficult way to initiate trust. A listener can interpret a lot out of a voice that has nothing to do with the words, such as inflection, tone, confidence, even gender. These interpretations can vary radically from message to message, reciever to reciever. You remove these variables if you just write a letter. The reader is more likely to call back after careful, detailed consideration of the mostly tangible information that you sculpt into the letter.

The vagueness of your message I think is probably carrying a creep factor... They have no idea why you might be calling, how you know them, their number, etc. This is just my opinion, but such a message is probably more likely to inspire someone to change their locks than to call back.

Not to say it can't be a deal. I would just obtain harder, more trustworthy numbers.

It's easy to calculate on your own.

Offer to seller = ARV(0.7) - repair costs - what you want to make.

For example, you would calculate 75(0.7) - 15 - 5 = 32.5

Based on what you said though, I would not trust your data.

The variables (ARV, repair costs, and what you want to make) need to be as accurate and fair as possible, preferably with data to back it up. You should NOT calculate based on the seller's repair estimate, even if they are a contractor. You need to remove all bias.

You should visit the property yourself or send someone you trust to make an estimate, taking pictures and notes.

Good to know. Thanks, all. I'd tag you but I'm on a tablet and this site isn't tablet friendly.

That makes sense, since a contribution to equity isn't really a cost. I know to contact tax professionals, but I'm just trying to get a general understanding of how this stuff works. What if that 17k were used toward renovation costs on a flip? Would this still be considered a contribution toward equity?

Let's say I am the only member of an LLC and the business makes 20k through wholesaling in a given quarter. If my marketing expenses were 3k, I suppose I would be expected to pay personal taxes on the remaining 17k. But what if that 17k is immediately fed back into the business, for instance as a portion of a down payment on a buy and hold? Do I owe zero taxes for this quarter?

If you are still worried about technicalities, find a CPA on Google. They'll be happy to walk you through financial need-to-knows.

I'm with you. There is no good reason not to have at least one LLC for the separation and protection of your assets. Sadly, I do not know the process for Illinois, but I formed a Virginia LLC online last week for $100 in 5 minutes. Most states have a very easy form to fill out physically or online. You do not need a lawyer to do this unless you don't know your address or SSN, and if you don't know these then you shouldn't be filing anyway.

Your state gov website should have all the info you require.

I don't necessarily disagree with any of you. Even if you don't display anything specific, you have plans and strategies to achieve your goals. I posted in the "starting out" forum because I was trying to get a message to my fellow newbies.

I've noticed that the profiles in my community are about only 10% active, and the inactive ones do not have tangible goals. In fact, they're often so vague that they are nearly meaningless. I'm trying to give a helpful tip to those who might not necessarily know what they want at all.