All Forum Posts by: Jim Pellerin

Quote from @David M.:

@Maurice Smith

Interesting...  We are mixing up a bunch of terms in my point of view...  So, how do you consider flipping profits are taxed???

I generally thought wholesaling is the assignment of your purchase rights to somebody else.  The whole point of wholesaling is to not actually take Title.  By assigning your right to purchase, you basically "go around" the brokering of real estate which is regulated.  As such, the wholesaler earns a fee which is active, ordinary income also subject to self-employment tax.  In this case, it has nothing to so with short term capital gains tax because there was no investment property that was purchased sold.

In the case of a flipper, the IRS considers this action to be the sale of inventory and not an investment property.  Many people think that since they are transacting in real property its automatically capital gains.  Its actually not because its not an investment property.  So, flipping profits are also taxed as active, ordinary income also subject to self-employment tax.

A lot of wholesalers take title during a double closing (forget for a moment if it's legal or not). They take title and sell the property all wihin a very short time period, usually minutes. They do not assign their interest.

Quote from @Josh Pulley:

Quote from @Jim Pellerin:

I mean $8k is not bad. I have personally spent over $100k on various programs and mentorships. I know fortunebuilders charges around $30k, for example. I never too their program though.

The real question is do you want to take the time to learn everything yourself and make all the same mistakes beginners make. I know I made lots over the last 25 years. And there is a lot of misinformation out there. 

For example, one of the biggest mistakes I made when starting out was acquiring 100 SFH and renting them out and expecting a passive income. Sure that will make money over time but I was trying to replace my income now. And I hated being a landlord.

Does his program offer 1-on-1 coaching or just education AND group coaching. To me 1-on-1 coaching is the most important thing. With that you get personalized strategy, education, direction, accountability, motivation and lots more.

So, the bottom line is figure out what your short term and long term goals are. If you are ok to do it on your own then do that.

Best of luck.

Short term goals is i would love to replace my current salary of a six figure income. Whether that be through flipping or STR. And yes this offers 1 on 1 contacts to call and speak with about running numbers on deals and such. I have access to the fortune builder program through family. Maybe thats the route i should go.

Sounds like a plan. The mechanics of real estate investing is easy. Buy a property, fix it up, rent it or sell it. Nothing beats an experienced investor to guide you through a sound strategy and your challenges along the way. Any program worth investing in should show you how to replace your day job in 12 months. 

And if your short-term goal is to replace your income in, say a year, I definitely wouldn't invest it in smaller rental properties like single-family homes or duplexes/triplexes. You need to focus on income-generating strategies. Your investment strategy needs to align with your goals.

Quote from @Josh Pulley:

Quote from @Jim Pellerin:

I mean $8k is not bad. I have personally spent over $100k on various programs and mentorships. I know fortunebuilders charges around $30k, for example. I never too their program though.

The real question is do you want to take the time to learn everything yourself and make all the same mistakes beginners make. I know I made lots over the last 25 years. And there is a lot of misinformation out there. 

For example, one of the biggest mistakes I made when starting out was acquiring 100 SFH and renting them out and expecting a passive income. Sure that will make money over time but I was trying to replace my income now. And I hated being a landlord.

Does his program offer 1-on-1 coaching or just education AND group coaching. To me 1-on-1 coaching is the most important thing. With that you get personalized strategy, education, direction, accountability, motivation and lots more.

So, the bottom line is figure out what your short term and long term goals are. If you are ok to do it on your own then do that.

Best of luck.

Short term goals is i would love to replace my current salary of a six figure income. Whether that be through flipping or STR. And yes this offers 1 on 1 contacts to call and speak with about running numbers on deals and such. I have access to the fortune builder program through family. Maybe thats the route i should go.

Sounds like plan. The mechanics of real estate investing is easy. Buy a property, fix it up, rent it or sell it. Nothing beats an experienced investor to guide you through a sound strategy and your challenges a long the way. Any program worth investing in should show you how to replace your day job in 12 months. 

I have done a of creative financing over the years.

1. Vendor take backs (often referred to as seller financing). Still requires you to put money in if they arent doing 109% financing.

2. Subject to's where the owner stays in the mortgage but transfers title.

3. Sandwich lease options. You dont own the property.

4. Joint ventures

Or if you want to make money today, try wholesaling or fix and flips.

I mean $8k is not bad. I have personally spent over $100k on various programs and mentorships. I know fortunebuilders charges around $30k, for example. I never too their program though.

The real question is do you want to take the time to learn everything yourself and make all the same mistakes beginners make. I know I made lots over the last 25 years. And there is a lot of misinformation out there. 

For example, one of the biggest mistakes I made when starting out was acquiring 100 SFH and renting them out and expecting a passive income. Sure that will make money over time but I was trying to replace my income now. And I hated being a landlord.

Does his program offer 1-on-1 coaching or just education AND group coaching. To me 1-on-1 coaching is the most important thing. With that you get personalized strategy, education, direction, accountability, motivation and lots more.

So, the bottom line is figure out what your short term and long term goals are. If you are ok to do it on your own then do that.

Best of luck.

Usually theres a contact name provided with those tools like propstream or batchleads or flipster. 

It's used by wholesalers. The wholesaler buys from the seller and they become the owner. The wholesaler then sells to the end buyer, who is usually a fix and flipper.

The wholesaler will need transaction funding to complete the first transaction. 

As far as the legal details, your title company will take care of everything. 

There are extra legal costs because there are 2 transactions. Plus there are extra land transfer taxes. The wholesaler will be subject to capital gains instead of earned income. 

That can work, assuming that there's enough appreciation in the investment property so that when you do your refinance at 75% LTV you can cover the HELOC. Also, be careful after you do a refinance, that you dont create a negative cash flow on the investment property.

My personal success only took off once I had mentors. Its depends on you. How much is his program.

The quick answer is that it depends. Here's my long answer.

Dont invest it in single family rentals. Or even duplexes or triplex ... unless you have a long time to wait.

Options

1. Find a good passive investment that pays 10% to 12% .... and yes they are out there if you know where to look.

2. You could be a money partner in some fix and flips. But make you partner with seasoned professionals. Earn 30% to 40%. 

3. Learn how to wholesale. Infinite returns. You can do this while doing #1 or #2 above.

4. Coinvest into a larger apartment syndication or private equity. Again, check out their track record.