All Forum Posts by: John Hamilton

Do you have anything in Jacksonville, FL? Looking for SFH or MFH (4 units or less) at severely discounted prices, no matter the rehab (except for full gut or rehab).

I have some options for funding, so not a tire kicker. Just like Brad, the numbers need to make sense.

They auto blocked the name of the school in my post reply, but it starts with Dean and last name initial is G. I'm sure you can figure it out.

Sorry, this may be a little long.

Here is my experience with *************'s Profit from Real Estate training I took with my partner back in 2010. It sounds all to familiar with RDPD and most likely the same as every other REI guru training out there.

Bottom line: I think the 3 day seminar was worth it for $199. It teaches you about having the right mindset, provides some training, and a wide variety of information touching on different aspects and strategies in REI (I fell it's suppose to be enough to entice you purchase the bigger enchilada).

Background: I feel my partner, who previously had done a couple of wholesale deals by bringing a buyer and seller together, had a different goal in mind. She, which I found out sooner than later, was in foreclosure. She had no job and very limited savings, with 2 or 3 credit cards with high limits for her existing, local business. Though the business was not registered with the State, she did have a county business license. Not much good for anything, really. I was to be the internet guy and the one to take care of the business side, while we both shared the negotiation, and she brought the experience and what she had in available funds. I was broke, homeless and out a job and going through some heavy depression when she approached me to join her on the venture. I told her my situation and she was okay with proceeding.

Result: With all the training we received, we couldn't do a deal. Not because the information was wrong or not enough, I just didn't have the wisdom to really apply that knowledge to real world and had NO help from my partner, other than the funds to pay for the training. Because she paid for the training, we had no funds then to generate some deals as that was the last of her funds. And her business license was not enough to say we were actually business owners. I wasn't even on the license as she had purchased it years before I was even on the scene.

More on the training: We attended the seminar, purchased the 3-day training ($199), and 2 advanced class training classes and a mentor. for $25K. I feel the seminar was nothing more than a sales pitch to get you to pay for the 3 day seminar. I felt the 3-day seminar was packed full of information (I have the notes to prove it, my partner, not so much, she relied on me, okay fine with that). I felt the advanced training would have been better served with someone with some knowledge of investing in general and real estate investing, even if it was very little.

To bring this story to an end, I feel she thought I would capture all the information, attend all the advanced training myself, and meet all the sellers, agents, buyers and mentor all by my lonesome. She basically expected someone with no experience and no money to take advantage of the training and perform a miracle and save her house in a 2-3 month's time. Boy, was she asking a lot and put too much pressure on me to save her in a situation that she got herself in. 

Mentor: By the way, the mentor was a joke. Basically, no preemptive help or suggestions to prepare for his arrival. I asked what he's done. He said he did tons of deals and now mentors clients to give back.

When he arrived, I met him at his hotel. He asks me what kind of deals I had going and told him a buyer wanted to purchase a property that a seller we knew was selling. He pressures me to call the buyer, since I thought we had the seller ready to go. He then pressures the buyer after taking over the call. Needless to say, he ran off my only buyer. Come to find out, since I didn't have a signed contract with the seller, just verbally, I had no deal to being with. He should have been able to tell me that before running off my buyer, who would have been happy with any deal that fit his criteria. Plus the seller was 1 of 3 heirs and they were the only one who was willing to sell. 1 was still on the fence and the other was not willing to sell. We move on.

Since that deal was dead, he then says, well let's see if we can find more deals. He then asks if I can get a local newspaper, so we can look at the classifieds. I'm thinking, newspaper? It's 2010 and print is dead and this "mentor" wants to peruse the local newspaper for deals? Okay. Well, after all, he is the mentor. Of course, we find very little. He pulls out his laptop, which I had brought mine. His is falling apart. Tape holding the CD door closed and his power cord was not working right. I thought, okay now he will show me how to look for deals. After a half hour of fumbling around, he says let's go driving for dollars. Now, we are getting somewhere, as I heard that is one way of finding local deals with motivated sellers. He is looking for realty signs and wants me to call them and ask them a list of questions. Of course, they are going for retail price and not interested in talking to someone with no money. No problem, we'll go to the source. We go to Keller Williams and meet with 2 agents that deal with investors. Of course, they were not impressed with some who had no money and none to little experience. After spending most of the day, we still had not got any closer to even getting a deal. He leaves and that's it. He doesn't leave me with any plan based on our goals, nor does he give me anything extra than what I had already learned from class.

Parting Shot: I think that for the advanced training, especially when you pay for a mentor, they should finish the 3 day training with individually sit with you and build your  business plan based on your goals, provide you with real information tailored to your area, so it will better prepare you for the long road to come and for the upcoming mentor meeting. They gave you enough information to perform, but as a newbie, you aren't going to get very far. Especially, when you find out that most everything that is needed costs more money to not only get started, but to build your business and maintain that momentum.

I hope this helps those thinking of going the guru route and what to expect. It's not all wine a roses afterwards. In fact, that's when the real work begins, and you are on your own. It's up to the individual to keep things moving forward. I wish I knew what I know now, but then again, I wouldn't pay for the training. Go figure :)

You can bet the air force buddy is collecting rent on something he doesn't own outright. He doesn't care about the seller or the existing loan, or the property as exhibited by his disappearance. 

I was floored when the OP thought a win-win could still be accomplished. Really? Potential cloudy title by an unrecorded deed, home occupied by god knows who, buyer who skips town but still collects rent (I'd take that bet), seller who is close to or in default with an fully mortgaged asset, and a clueless "investor" who screwed this up for everyone, except himself, from the beginning.  I don't see much upside here, even if he did get another buyer. No new buyer would or should touch this with a 10' deed-in-lieu.

The OP should have posed this scenario before trying to pull off the "best deal ever". Too much work and drama for $2,000, IMO. Not to mention, he could be, and rightfully so, in legal trouble. Then, OP wants to compound problems by post dating legal transfer documents? This guy should become a guru and sell this. He'd be rich!

"How to make 2 grand in 5 minutes with no money down, no credit, and no risk!"

Here is what I found on Legal Zoom:

I am not representing nor do I confirm this information, just sharing what is public domain from a "reputable" source.

And yes, you, or your company, has to report ALL income. However, there are things you can do to minimize and deduct from your tax liability. My Mom has been doing her own and other business taxes for years and always maximized the deductions and losses and minimized the gains and liability. Pure magic, because she understood tax laws for the current year, along with regs and rules concerning income and gains, according to the illegal entity called the IRS. She was never a lawyer, nor a CPA. Not even an accountant, but she could run circles around any of those professionals. Time and again she was asked by those professionals to work for them...she laughed at them and said, NO WAY!

On with Legal Zoom's information:

Unless the members of an LLC elect otherwise, the IRS treats an LLC as a pass-through entity for tax purposes. This means that income for LLCs is reported on the personal tax return of the owner or owners, called members. Multiple member LLCs are taxed as partnerships, with each member's individual tax returns reflecting a share of gains or losses of the partnership. An LLC, however, can also elect to be taxed as a corporation.

File profit or loss from business on Schedule C. As a member of an LLC, you must report business income on Schedule C to Form 1040. This form contains lines that help you calculate your profit or loss and deduct appropriate expenses. The final result can be carried over to Form 1040 to help calculate your personal federal income tax liability. If your business is a multi-member LLC, you should receive a Schedule K-1 reporting your share of the profit.

Report passive income on Schedule E. Supplemental income earned by a single- or multi-member LLC through ownership of real estate or intellectual property can be reported on Schedule E to Form 1040. From rents and royalties received, you can deduct certain expenses listed on the form and calculate either a profit or loss that can be used to complete Form 1040. If your business is a multi-member LLC, you should receive a Schedule K-1 reporting your share of the income.

File Form SE for self-employment tax. Members of an LLC are considered self-employed and must file Form SE to calculate the amount of self-employment tax owed unless their income from the business is less than $400.

File multi-member LLC income on Form 1065. If your business is a multi-member LLC taxed as a partnership, the business itself must report its income on Form 1065. The business's taxes will still be paid by each individual member as reflected on their Schedule K-1 and reported in their individual returns, but this form helps the IRS ensure the business's income is being reported appropriately.

To end this reply:

Talk to a real estate CPA and atty to know your company and personal finances and structure are protected and sound.

Hi @Aimee Hill I'm not a lawyer, tax accountant, or a financial adviser.

Some people feel that for the first deal or two, you don't need a corporation. Keep things simple for tax reasons and make sure you claim all the deductions (gains and losses) to offset your tax liability. @Linda Weygant is very wise in telling you to keep your business and personal assets and expenses separate. Never mix them or you WILL pay for it. Maybe not now, but you will be held accountable.

If you are starting a business to run as a real estate firm, with the mindset to eventually hire some employees, and use different strategies to make money, it's best to be incorporated. LLC is usually fine for most REI ventures. S and C Corps, I feel, are too overboard, unless you are heavy into commercial and huge MF investments, which you are not. There are still ways to minimize your tax liability as long as you keep great books and reinstall the money back into the company with very little going into your pocket, except for a minimal amount, like a small salary. However, asking a real estate atty and CPA will give you great head start in being protected and financially sound, whether you incorporate or not.

I have started my own LLC for all REI, which is wholesale, flipping and selling. Eventually, when the business grows into other markets, like buy and hold and others, I may have different LLCs, or run a series LLC to keep them separate. That is if the business is blossoming. Keeping everything under one business could lead to disaster if one of those businesses is financially or legally destroyed, which leaves the rest of the company's assets wide open to being litigated.

I hope this helped give some insight. Talk to a real estate atty and CPA to help you understand your options based on your immediate and short term goals.

Hi Leigh,

I'm wondering if your offer is still available? I would love to work with a funding partner. If so, I would love to tell you about myself, what I'm working on, and where we can partner. 

I'm in Jacksonville and Saint Augustine areas. I only want those with less than 70% ARV, minus the repairs, minus any other costs, then flip to retail for full profit margin or cash flow buyers close to or at retail. I have trusted comps, reasonable rehab estimating skills, and know what needs to happen to minimize our costs and maximize our profits.

I've started my first DM (postcards) campaign, which will mail this coming week. The 2nd campaign (yellow letters) is being worked to mail out two weeks later. I work with other wholesalers who have some workable deals now. I also have cash buyers who are looking for cash flow properties. If we fix 'em up nice, then they should sell at retail or slightly below. If we can get a trusted agent, we can find home buyers, but then we lost the commission, so a trade off there.

I'd love to have someone like you mentor me. I have never owned a home or done a deal, but I have been trained by a guru, networked and researched everything about residential investing strategies, close to getting funding and working with other JV funding partners, but it doesn't hurt to have more.

My new company, HC Homes, LLC, was started this month. I do have a partner and we are both managing members, but we both are like-minded and looking for others to JV or mentor. We both have experience in rehabbing, but I mostly deal with the business and finding the deals side. I'm mentoring him on that in case we get slammed with leads. I've purchased a domain (well, 2 of them), and already created 3 different websites (Sell, Buy, and Wholesale) with Lead Propeller. HamiltonChampleyHomes.com, HCHomesSell.com, HCHomesWholesale.com. I'm switching the first one for HCHomesFL.com and should be ready in the next day or two. I plan on doing SEO and other things (bandit signs, online searches for off-list properties, and FSBOs) to generate more deals.

I do have great income (I'm a contracted IT Project Mgr by trade) and establishing good credit for the last year, though it's still poor to fair score-wise, but no big hits on credit report. I'm trying to save, but just spent a small fortune in the last month on starting the business. Very small debt and not very many assets.

Call my business phone at (904) 557-5063. My business email is [email protected]. My personal email is [email protected] and cell is (925) 784-9733. I've lived here since March, and Matt, my partner, since Dec, 2014. We are both from Northern California, though I've moved to different States over the last 5 years, hence why it's been a struggle to make a deal.

I look forward to hearing from you.

John Hamilton

@Jay Hinrichs you seem to know alot about the Sacto area. I lived there for 20 years and left in 2009. I feel the area went crazy before, during and even after the bubble burst. Has iit settled down some? It has so many good places to invest across the board. Just wasn't sure how the market/rents rebounded since 2010.

scam

check your email @Tyler Rusomaroff