All Forum Posts by: Jim Witten

If I understand you correctly, use a fictitious LLC name for the close? But then after the close, transfer it to the real LLC when it finishes being processed by the state?

Can you legally close under an non-existent LLC name though?

I'm not sure if I understand.

I was wishing to close a property under an LLC with someone. The plans was to submit the initial offer under a designee name, myself, but specify it to close under an LLC name at the end, such as "123 Elm Streeet LLC". So I could go online an quickly setup the LLC in the mean time.

But I discovered the state's processing time for new LLC's is several weeks, and our close was going to be one week, is there any solution outside of extending my close period? Could it still close under the LLC name if it's not fully processed, as long as the name is available?

So there's no difference in the tax rate if someone just wired me $10K personally, versus buying a flip property under an LLC and making $10K from the property?

Oh interesting, I thought it would be considered capital gains, or a lower tax bracket.

This is just something extra I suppose

If I brought a property to someone in California, and my intention was to setup an LLC with the person where I get $10K (for example) from the net when it's sold. But they just want to pay me a $10K finders fee upfront.

Won't a direct $10K finders fee payment be taxed at a much higher rate than $10K through the LLC, after the property is sold? Because the LLC would be considered capital gains right? It's coming from a property.

And as far as the $10K finders fee route, What type of tax would that be classified as? Gift income? Estate Tax?

Yeah I guess both of you are right,  maybe its possible if the bank is willing to negotiate and depending on how far in the process or how many payments are missed, etc... Im guessing 80% of the time its to late.

I'd like to get a property at  trustee sale someday, but I rely on financing, so you have to show up with a chunk of money for trustee sales, either way, just to difficult for me to try to make that work. Plus of the 7 times or so Ive went, everything was postponed, everytime. But anyways, I dont want that to the focus of this thread (ha)

If a house goes into a trustee sale, and the auction date is 2 months out, do they have the right to sell privately or on the market before then, and cancel the sale?  Or does the bank/lender control it at that point?

I wanted to offer to buy some houses that have trustee sale auction dates set, and swoop in, offering the owner a cash buy, but is it possible at that point? Or do the owners not have the right anymore over their property?

Thanks

 Wow, 10% response, that is lucky! Yeah  I agree, no need for me to point out that I know of their problems, they already know themselves. I look forward to see what my results are.

Yap, Ill give it another shot, Will:
1: Hand write my letters, no more printing stuff. Make it seem 100% genuine. 
2: Try the yellow lined paper thing, never knew of that until yesterday. 
3: Send out double, about 60 this time, and send follow ups in 3 weeks. 

Still not a ton, but Im hand writing them and I dont have much of a budget, and should have much greater chances now with the above, and being that all 60 are pre-foreclosures owners, and following up, etc...So really a total of 120 letter in the end.

Well, Im not trying to argue or disagree with you guys, as you have much more experience than me, but everyone seems to be referencing general mail campaigns where you send hundreds or thousands a month. The 31 I sent were 100% to people with pre-foreclosure or liens, directly addressed to them.

If I just sent out 700 letters a month to houses, I think 99% are just regular homeowners not in foreclosure. So thats where I was disappointed, my 31 letters were very targeted, not just a mass mailing of 700 letters a month. 

But either way, perhaps 31 is still to low, but not by hundreds. Perhaps if I did 75 of these targeted mailings it would work.....