All Forum Posts by: Jason Green

Pretty simple to get into. All you have to do is have a relationship with someone in the REO department and build the business. I have several agents where I am from that have just built a reputation as "REO experts". It just takes time to build that brand for yourself. Lot of headache with REO listings just be aware.

If you want something basic and are only doing plan view drawings, a scale and a pencil and a set of CAD stencils work perfectly fine for additions, renovations, etc. I have used grid paper and a drafting table for simple stuff for years. I can have a bathroom drawn out before most people can even open their computer and fire up AutoCAD.

If you are looking for software and are new to CAD or just doing basic drawings, there is no question that Sketchup is the best. Follow the link below. The free version has very little limitations and will do everything you want to do.

http://www.sketchup.com/products/sketchup-make

I was lucky enough to be paired with two gentleman I had never met at the golf course the other day. After talking, I learned they have been flipping and rehabbing together for more than 30 years. They together have over 100 units.

I asked them if they could go back to my age, with my capital, what would you do. I assumed they would say turn and burn and keep building cash while you are young. To my surprise, they both unanimously and very certainly said they would buy and hold.

They said they would buy as many units as I could with 20%-30% down so I have a safety net in the event of a biblical downturn and had to sell off units. They suggested 30 year mortgages and double up payments when I could.

Slow and steady was their advice. They said every time I got another 20% to put down, to go buy another one. Once I get a portfolio of rentals built up, just ride it out until they are paid off.

Very surprising they suggested this, and this was coming from two guys who have tried it all.

So to your point and question, the advice I received was basically less is more.

Ok I had to dissolve an S-corp and opened as a single member LLC due to the loss of a partner. In the interim I bought a property. I am closing on it next week. I had to buy it in my personal name, which is fine, because I didn't have my LLC binder back yet.

Now I have all of that in place, I am trying to figure out from a tax standpoint what is best to do. If I rehab and flip in my personal name, I am going to pay massive capital gains tax because of my income.

Is there any advantage to deeding it to my LLC at this point or do I just suck it up and take the tax hit. If I could get it in the LLC name then I have 7 or 8 more months to expense out some of the profit from the flip.

My worry is, if I just deed it to my LLC, that may act as a transaction and I will pay personal tax on the gain anyway. I guess I could "sell" it to my company for what I paid and show no gain.

Any advice would be helpful. Hopefully I am making sense.

Thanks guys and gals as always.

PM me.

I passed on it. I found a company that could turn it around in a few hours and it was trash. They didn't have any mortgage info. When I inquired they said they didn't find any. I was like well, there definitely is one because they are selling it on the courthouse steps. I decided to take my time and feel good about the deal.

totally depends on the venue and stage the foreclosure is sold. If it's REO, there aren't many great deals. If it's courthouse steps, they are there but require serious work to find. The auction sites are usually impossible to get a deal on.

@Seth Carlone-Hanson for me it was just fear. This on is a market I know incredibly well and not a very old house. Just felt like a good one to jump back in on.

@Carlton Perkins most of the deals I looked at were ok. Some borderline. I feel that just analyzing deals is a great way to feel good when the opportunity arises.

@Christian Sifuentes good question. Winning bid happened April 4th. Closing is set for May 5th. You don't get any input into this. They assign you a transaction coordinator who gets you what you need. Moves very fast.

@Josh Hooper the Birmingham Association of Realtors has an approved FSBO contract written by their lawyers that covers all the bases in Alabama. I'm happy to send it to you. I've sold several with this same contract. Also I can recommend several good Birmingham Escrow people that can handle the whole deal and closing and title very reasonably. I agree with everyone that suggested letting the same attorney close the deal that handles the offer. Will surely save you $$

Guys and gals,

I wanted to share my new flip deal that I am pretty excited about. Its been about 7 years since my last flip and I have been mostly helping other investors find deals and doing due-diligence. I decided to cash out and get back in the game. I have been looking for a few months and analyzed easily 100 deals in that time frame. One finally came to me via auction.com of all place with a referral from my best friend.

The home is a great 3/2 1950 sf split foyer. As luck would have it, I know the original builder back in 2010 and it also is in the Town I grew up in so I am very comfortable with the market there.

Auction.com in my experience is a little bit of a scam because they have the "seller approval" clause. To my extreme surprise this property did not.

I was able to snag it for $182,500. Closing costs will be about $3k. I should be all in around $186,000. Comps are $260k and it needs paint and carpet and minor cleaning and touchup.

Just wanted to share and I will update as it goes. Feels pretty awesome to snag a deal this good. The lesson I hope any new flipper reading this learns is that I passed on about 30 "good" deals to be cash ready to snag this one. BE PATIENT!!