All Forum Posts by: James Vermillion

I just came across this article discussing the housing price decline that occurred in October http://www.marketwatch.com/story/us-house-prices-tumble-in-october-2010-12-28?siteid=yhoof). A lot of the discussion you hear on the news and other articles about real estate paints a somewhat rosy picture, that the worst is over and the recovery is about to start. In October 6 cities hit new lows in housing prices (Atlanta, Charlotte, Miami, Portland, Seattle and Tampa hit their lowest levels since home prices started to fall in 2006 and 2007.) As you can see by the cities listed they cover the south, east coast, and west coast, not one area of the US.

This is good news for those people in a position to buy and hold properties, as proper DD can find some excellent deals. What are your thoughts on the housing market for the next 6 months. Do we see this climb everyone talks about, or do prices continue to fall?

I got started by partnering with a friend who was knowledgable and one I knew I would have a great working relationship. By partnering we were able to buy multiple properties where I would have only been able to work one.

Just a quick note on AL...they often are not helpful depending on where in the country you are. I say this because I did at one point sign up, but there were so few entries from my area that it was not worth the money. Check into that before you pay anything.

I cannot speak from personal experience but I have several friends who have tried this and been successful several times. I would say it is worth a shot before moving forward.

Using the market always works especially with Lowes and Home Depot....they hate losing customers to each other. So if you are not getting the discount you think you should (within reason of course), let them know about it. Also, developing relationships is important (as always) and can lead to better prices.

This is an interesting conversation and one that pops up this time every year. It is a good reminder that you can run your business several different ways and still be successful.

Fred,

You can also comp the land and then use the cost to build the house today and depreciate it based on the age of the house. In your case you will probably need to use a combination of comp methods.

Good decision and good luck Bill! Keep us posted

I concur with Bryan on this issue. Is an LLC needed, I do not believe so...however, what is the harm in making one just in case. I can only speak from my experience, but setting up our LLC was quick and cheap, I would highly recommend setting one up. Also, doing so will probably generate a conversation that all of the involved parties need to have, just to ensure everyone is on the same page. Better safe than sorry.

Bill,

From a first glance it looks like a go, however...we always go much more in depth with the number crunching. Be sure to add 10% to estimated rehab for any "unexpected" costs. Also, make sure you consider property taxes, closing costs, etc.

I am sure you have already considered all of those things, just throwing in my two cents.

Good luck if you pursue it and keep us in the loop on how it works out.

--James