All Forum Posts by: Karin Crompton

Chris Martin - thanks for the point about the other monies borrowed. I think Bill Gulley and J Scott answered it best. The rehab money and some purchase price was covered by a partner in the business. I'm still learning the ins and outs of proper accounting and bookkeeping terminology, but I believe the bottom line is that she essentially made a loan to our LLC.

lol I never meant to imply I feel any guilt! No worries on that end. Just kind of wondered whether it was a little weird. And I think I got my answer(s). :-) (As an aside, I wonder if this thought perhaps crossed my mind because I've been an employee for much of my working life, and no one talks about salaries in that world. It's taboo to discuss what you make. And now I'm headed into a scenario where this check is out there for everyone to see - and it's not even accurate! haha)

J Scott, thank you for the insight into why you attend closings. I really respect your approach and am working to emulate a lot of what you do, so I appreciate the input.

And yes, K. Marie Poe, I think you absolutely earned whatever you made on the "no-rehab" sales! There's a ton of ground work that goes into any aspect of investing. To me, that's "earning" it - putting in the time to learn the business, to network, to market for and find the properties and then to figure out the number of creative ways you can make a deal happen, to stretch outside of your comfort zone ... etc etc etc. That's hard work. I find it fascinating and fun, but it's still a tough business. But that's part of what makes it great, right? The payoff feels that much more satisfying.

Patrick L., I like the idea of pre-signing, will definitely look to do that on the next one.

And Dion DePaoli, you make a great point about most buyers being caught up in their own side of the closing. True enough!

I probably should have mentioned that I served as listing agent for this as well, so there's an added element regarding why I would attend the closing. (I'm not only a newbie investor but a newbie agent as well, got my license only to aid in my investing.) But yes, certainly, things will proceed differently as we progress and do more and more.

Jake Kucheck, 150k is a lot of money to ME for one - especially if it was the profit on just one single-family rehab. I can't think of very many people who would turn up their nose at that.

And yeah, I'm attending the closing. I don't plan to attend them forevermore, but as I'm still a newbie, I look at every step in the process as a place to learn something. And for now, I'm still absorbing the ins and outs of closings, what info goes on all the forms, what each party does, etc. And come on, who doesn't want to be there for their first-ever rehab to grab the check? lol

Jon Holdman, there are a lot of things that I feel should be intuitively obvious that the casual observer does not, unfortunately! lol Then again, I'm sure that I've been that casual observer plenty of times myself...

Thank you for the reply. I believe we will let it be, and let them think what they think. :)

Hey, Daniel Nield, come on down!! lol

And no worries, I know some people making very real money in Central CT as well. ;-)

Same here as for J Scott - both buyer and seller see the entire HUD 1.

And no worries, K. Marie Poe, we earned every penny and I don't feel bad about that at all! :-) Though I do worry a little about coming across unscrupulous folks at some point who would view us as "rich investors" and look for some reason to sue or whatever. Although that's another topic that would cover LLCs and the like! (We have various protections in place.)

I think my concern is actually more along the lines of wondering whether they're going to think they can now call us up for any little thing that pops up afterward; they've already been tacking on oh-by-the-way requests in addition to the inspection report requests. Some we've agreed to, some we haven't (see @Glenn Schworm's admonishments about karma and being the good guy even when you don't have to). I figure if they're under the impression we just pocketed 150k, they'll be inclined to call us for God knows what.

Hey all,

We are scheduled to close tomorrow on the sale of a property we rehabbed (woo-hoo!). This is my first rehab, and we will make a decent profit (again, woo-hoo!) ... however, the profit is nothing close to what the paperwork will make it appear to be!

It occurred to me today that we will walk out of the closing tomorrow with a check for about $150k-plus. The majority of that will pay back money we borrowed for rehab, a hunk of cash my business partner put into the venture, etc.

The thing is, I don't want the buyer to think 150k is the profit we made, for a variety of reasons. How do you handle this, if at all? I was thinking along the lines of a joke during closing, like, "Man, I wish we were pocketing all that!" haha

Do you all say anything, or just leave it be?

Hi Dan! Welcome to BP; I love seeing CT people on here. I wish you were in SECT! I'm in New London County and am looking for a good wholesaler down here.

Have you checked out CTREIA yet? There are a ton of members from the central part of the state, so I believe you could start up a very profitable wholesaling business in a hurry. There are quite a few serious cash investors who work the central CT area. CTREIA has a meeting coming up this Monday; networking starts at 5:30. I've found that to be the best part of the night.

Good luck!

Karin

Hi Alan Langer and Martha Chavarria! Welcome to BP.

I'm based in SECT so I don't have an answer for you on this one, but I do know that CTREIA, the statewide investor association, has a very active Fairfield County rehab subgroup. I'm sure there are people there who would have some suggestions. CTREIA is at ctreia.com and you can poke around there to learn a bit more about the organization. They meet this coming Monday in Meriden; I always tell newcomers that the organization is a bit heavy on the gurus for its monthly speakers, but that it's an excellent place to network b/c a ton of people attend and are members.

There are some folks from across the border who attend as well, Martha. I think it's mostly the Westchester area, perhaps? But also some others that overlap a little with CT's state lines.

Good luck! It's often a scavenger hunt, isn't it? :-)