All Forum Posts by: Jesse Swagerty

I’m a house flipper, but we’ve recently started using the whole-tale strategy, meaning we only clean the house and repair damage...no updates...then list below market.

I’m finding my project budget falling around $5/sf...I would never go this low if aiming to truly flip (my flip minimum is $10/sf)...but seeing as many house buyers, rental buyers, investors, etc may appreciate the cost savings (which also affords them the ability to do their own updates)...I feel it’s a valid strategy.

Just wondering if anyone else uses this and if so, is there a minimum budget you set for yourselves.

@Cameron Price

I highly recommend reading “Tax Free Wealth” by Tom Wheelright. It’s literally my favorite book. I’m not a CPA. But I am a nerd who enjoys doing my taxes every year. Won’t say I “understand” it...but I get it.

I also am an engineer and RE Investor. For me, the main thing to understand is that we live in a democratic republic, where differing opinions of what is “right” or “fair” to either the individual or society as a whole are topics of constant debate....and always will be. Thus we arrive at our ever changing tax code. It will never be truly “fair” to everyone because we all have different perceptions of fairness.

As an investor, the key point to understand is that the IRS only has about 6 pages describing what taxes have to be paid, but VOLUMES of literature for deductions that can be taken depending on how your dollars are spent. The purpose of this is to incentivize the general public to use their money certain ways intended to boost the economy, create jobs, save lives, feed the public, etc, etc. The better you understand this, the more “fair” the tax code will be, because you’ll understand how to better navigate it and maximize what you can keep.

@Jacob Walls just throw some letters in front of “Enterprises”, “Realty”, or “Holdings” and move forward. You can do a dba (doing business as) later on when think of the right name.

I tell people all the time, Most important thing when you're starting is to get the LLC set up properly. Catchy names are important for marketing, and that's about it. So you can't let the name keep you from legitimizing your business and protecting yourself.

Example...we started as “BDE Enterprises” because we kept procrastinating our official formation since we couldn’t think of the perfect name. BDE just stands for “best day ever” which is an inside joke for my wife and me.

We later landed on a name that we loved, and for $35 and an online application to Secretary of state, registered to do business as Better Options House Buyers

@Mel Hignell probably need a copyright attorney.

@Marco Zacarias

I’m wondering how or if you proceeded with this plan. My assumption is that you mean to put up $20k towards rehab in exchange for $15k (or 50% of seller’s gained equity).

I.e. Bob would sell at $80k. Then Bob gets back his initial $30k investment, you get back your $20k rehab expenses, and the net profit is divided equally. Did I get that right?

We have partnered on a couple similar deals, but to be honest we just drew up an informal term sheet which we both signed. There was no attorney involved in our agreements.