All Forum Posts by: James Vermillion

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

I am going to go a little off topic here, but this thread reminds me of something I have thought about for a long time. I believe so many fail in real estate (and business in general) is because the idea of owning your own business, managing your own time, and being your own boss sounds great. People have fun time thinking about how great it is going to be, setting up their website, getting business cards printed, etc. But when it is time to get to work and actually put in the "work" they simply fail to do so.

The "time management" piece is a huge one. By the way...I think this is an important thread and agree with the importance of focusing your time on "producing".

I can tell you what I did. I spent hundreds of hours educating myself (not the likes of wasting money on gurus), rather using free resources, real estate investing clubs, talking with knowledgably people, etc. I then spend many more hours coming up with my plan, setting up my LLC, and educating myself some more.
I started meeting a lot of people in the business (lenders, contractors, other investors, etc). I set up a business bank account and knew I was ready to act (I had a solid foundation of education and preparation.) I went to a bank I had developed a good relationship with and told them what I needed (a loan with money built in for a rehab). We hashed out some details and I left the bank knowing once I found the right property for the right price I would be able to close on the property, rehab the house, and have money left for holding costs and the many other costs people often overlook.
The rest is history. The most important part is being pro-active and learning all you can. There is a fine line between acting and jumping the gun.

I would be buying more if I had the cash available...in fact I cannot wait to sell one we are working now to free up cash for the next deal. There have been several that I would have put under contract had I been able to. Patience is a difficult thing for me to have right now!

All,

After months and months of work we finally found a house to buy and are set to close on 1 Dec. The offer was approved at $87,100 and appriased at $130,000 as it is now. We were pre-approved for a loan but the lender wants a line item cost estimate letter. We have had contractors go through the home and we have the estimates as needed, however I am not sure how to word the opening of the letter. Does anyone have a template or any ideas on this?

Thanks for the help,

James

I was also very confused by the postcard. Plus the postcard just did not read well to me.

What is the purpose of this card? Seems you are trying to use one card for multiple things.

Congrats and nice work...you got a nice jump start on 2010! Good luck with the rest of you 9 properties.

To infinity and beyond!-- James

Eric,

Thanks for your response. I am looking at making an offer on this property next week. I have my contractor getting in this week to give me a quote. Right now I am looking at offering $78,850...just to see what happens. I really like the looks of this property. I will definitley let you know how this one works out.

Thanks again,

James

I am definitley not one of the more expirenced investor on this board, but I say you are exactly right...save your money and start attending REIA meetings, networking, and find a mentor. For the money you might spend on a guru you can learn the same strategies and more, and use that money to put towards your first deal.

Some will say that yes, gurus are a great education tool, and you should invest in your own education. While I agree that investing in your education is important, I think gurus are the worst possible way to do so.

I hope my response helps, although it is just one new investors opinion. Good luck to you and your friends, whichever route you choose.

--James