All Forum Posts by: Joe Farrance

Hello, Currently my business owns a piece of property that is paid for and has a corporation tied to it. We have a buyer for the property and now it has been discovered that the corporation paperwork was submitted to the state as a charitable contribution even though we are listed as a not for profit organization and have been listed this way for well over 40 years. Now I'm being told that because of the charitable contributions listed on the corporation paperwork we need to submit a full appraisal to the state and that the state attorney general needs to approve the sale. My question: Is there away around this so we can close on this property before the year end. 

I will reach out to them and get some answers thank you

Exploring many options I have noticed a franchise company called (HomeVestors or We Buy Ugly Houses) franchise. The cost of this franchise to start is about $80,000, now apart of me says that is money I could use to purchase a piece of property and hopefully I won't buy a dude and recoup that money with a windfall. The other part of me says this may not be a bad deal to purchase the business model. As I get closer to retirement (5 Years) Would it be beneficial to hit the ground running with a franchise model or go at it on my own. Would the price to purchase a proven business model be worth it or should I keep my fingers crossed and depend on information from another experienced investor who will not soak me for ungodly amount of money that could potentially add years back on to my retirement goal. I do understand the risk no matter what option I choose, I'm just trying to eliminate as much of the risk as I can in my later years.

Exploring many options I have noticed a franchise company called (HomeVestors or We Buy Ugly Houses) franchise. The cost of this franchise to start is about $80,000, now apart of me says that is money I could use to purchase a piece of property and hopefully I won't buy a dude and recoup that money with a windfall. The other part of me says this may not be a bad deal to purchase the business model. As I get closer to retirement (5 Years) Would it be beneficial to hit the ground running with a franchise model or go at it on my own. Would the price to purchase a proven business model be worth it or should I keep my fingers crossed and depend on information from another experienced investor who will not soak me for ungodly amount of money that could potentially add years back on to my retirement goal. I do understand the risk no matter what option I choose, I'm just trying to eliminate as much of the risk as I can in my later years.

Wow. I forgot this post was out there and believe until today I never received any notice.
I have not done anything regarding the franchise, it seems when I raise this question my tax guy shoots it down. 

He tells me that for $30,000 you can purchase a flip and continue doing that instead of giving your money to someone else who will provide the same tools you can get through bigger pockets. 

Makes sense I guess however my main question now is. 

What is the price someone is willing to pay for a business model of a successful franchise? This is the hurdle I have come up against. 

Going back and forth with this question should I or shouldn't I. Recently I had a conversation with a franchise company called Home Vestors (We Buy Ugly Houses). 

The pros that I see with investing with a franchise company are the business model, the advertising, the ease of borrowing money to fund many projects at once, the tools to evaluate your property before purchase, coaching, plus more.

The cons: The cost, ($30,000),  monthly fees, royalty fees, Giving someone else money that can be used to purchase property or renovate.

My dilemma is this, I'm 56 yrs old and I want to retire in 10 years and what I don't want to do is tale 10 years to learn from my mistakes I would rather pay the cost to a franchise company that can minimize my mistakes so I can reach that 10 year plan a lot easier.

Some of these other real estate guru are charging a one time fee ranging from $20,000 up to $50,000 and then they're gone after 6 months or a year.

I have read some earlier post about home vestors franchise so I thought I would ask the question again, Is my scenario valid or am I procrastinating over this issue? Would it be better to pay a Guru the one time fee and move on? 

I would love to hear the pro's and con's from this group.

Thank You   

Thank You 

We are in the process of getting hoarder house that needs a lot of work. It has been valued at $40,000 and needs about $50,000 in repairs. After fixing it up the houses that have sold in the area are selling for $130,000. 

My question is: Although I have the $40,000 cash to buy the house should I use my own cash to purchase the house and then use the equity in the house to get a home equity for the fix up and then rent it out and have the tenants pay me back? Or should I keep my money and use the equity in the house to purchase and do the fix up and have the renter pay for the loan?

Thank you for the input 

Hello 

4 years ago I got married and we now have 1 house we live in and rent the other one out to a family member

Question is:

If we sell one or both houses would we have to report the capital gains?

Thank you