All Forum Posts by: J M.

I have searched the forum extensively and yet I felt like posting my own questions. Is that something that I shouldn't do because you don't like it? What are you the forum police? LOL.... :wink: kidding aside..your best advise was not very useful, try answering the questions I asked and then I will certainly thank you. If not, why do you bother posting on this thread if you can't contribute to the topic?

I don't know, why don't you let me know why I don't need an LLC to flip homes? I really need to do this right. You will save me a lot of time and money if I don't need one, but it seems that most everyone on this forum has one set up for their business flipping or even wholesaling.

Also read a lot about forming one in DE and rehabbing in a different state.. some say don't do this it is not necessary and some say do it. Trying to make sense of it all.

I need to set up my LLC.

My goal for the next couple of years is to flip. Not hold property. I want to set up my business correctly from the get go.

I wonder what seems to be better, to name your LLC as a person or with a fictitious name. In example
Let's say I am John Doe

1) John Doe, LLC
2) John Doe Homes, LLC
3) Starlight Flip, LLC
4) Frank Wilson, LLC (not real person and not my name)

If you use a personal name do you use your real name or you make up one to keep your real name more private to public searches?

What would you suggest I set it up?

Also, I have been reading a lot about opening the LLC in Delaware. I live in the south. Why would I want to do this vs opening it where I will be conducting business?

Thanks for your input!!

:wink:

I looked the form up. I am assuming you do this when you file your taxes, in this case for 2011? Or immediately after I wire the money to my account? I am also concerned about the logistics of how to transfer the money. Should I wire it or have my dad mail me a signed blank check and I fill it out and make a deposit?

My goal is to buy and flip then repeat. So you are recommending I set up an LLC and open a bank account for the LLC and then deposit the money to the LLC's bank account? I am new to this so I am putting the pieces together. If I do this, do I have to fill out some paperwork to represent the equity contribution? It will be just me on the LLC, what should I be on the LLC?

Hey thanks for your input, I hope I am not abusing your good will. I would like to start a thread about this topic, where in the forum would this be appropriate to be posted so that it is seen by seasoned investors like you?

Definitely the way to go about this.
So are you letting the REO agent represent you in case of a foreclosure?
Are you buying in your name when buying from banks or LLC?

I find this very interesting. If it is not listed on the MLS how are you finding these deals more specifically? I would really like to start getting leads like that and buying cash from people with equity!!

Vikram,
Thank you for your insight on this matter. I appreciate it.

Although to be honest, I am even more confused. Since my father is not a third party, you are saying that the him loaning the money to me won't fly with the IRS?
The account that he opened is called an international account and has a foreign address, his address. It was opened from his country. The account rep told my father that he has to keep the foreign address in order for the bank not to report the money to the IRS and avoid them scrutinizing him looking for taxation.
Since my father is not a US citizen, may I just wire the money from his account to mine and consider it a gift? I know there are taxes on gifts, but since he can't be taxed here maybe that would work? I don't want to have any kind of problems with the IRS nor have to start explaining things.
The amount will be 100k, which maybe is not that much, but still a hefty sum that I am forever greatfull to him. Do you think this deserves a new thread and where should I post so the right memebers may contribute?
What would you do if you were me and your father overseas is giving you 100k?

Thanks again!

The motivation for the home owner should be to avoid a foreclosure on her credit report and to be able to live in the home for as long as she can. If you can make her see those benefits, then you can get paid as a realtor for completing the short sale. If she is not cooperative, run as fast as you can. It will be a pain to work and at the end she might just move or not sign at closing and leave you hanging with a buyer and a lot of time and effort gone to waste.
I don't think the bank can negotiate with you anything in order for you to buy it at a discount or less than what is owed... you can't buy it either unless you have another realtor represent the seller with the bank. My .02

Not long ago I saw an old man wearing a superman tshirt get out of his truck (loaded with bandit sings) to pick up the I BUY HOMES sign at a busy intersection.. HE WAS ON A MISSION.. he even parked illegally as if he was the police.. These guys have forums and post about their adventures when patrolling the neighborhoods looking for bandit signs. They laugh at the bandit signs owners and they attempt to get them in trouble or fined .. it was hilarious to see that old man doing this.. and also made me aware I won't be doing this anytime soon in my area :)

thanks for your reply!

I am an agent, so the idea of writing many offers on different properties in one day a bit risky for my wallet and reputation. What do you do if you get it accepted and then have to back off? I don't like burning bridges with the local colleagues you know.

I am planning on buying to flip. So i have talked to a couple REO agents I have bought properties from for clients and they will let me know the deals they have before they list them, which is a good advantage. But, many banks are trying at higher prices and have policies of reducing list price after 30 days, etc.. so even having your friend REO agent might not necessarily mean you get the best deal as they can't control what the bank will accept, which brings me to think that I might as well write my own offers and try to get paid a commission as well. Are you an agent? What do you think of this thought?

How else are you buying your flips if it's not from banks? what is your most typical purchase, if you don't mind sharing, I am stoked about getting started asap.

Thanks for your input!!