All Forum Posts by: Kyle Cabral

@Patrick Sullivan

My Process

1. 1. Identify distressed property owner
2. 2. Add him to my database (I use Podio)
3. 3. Reconcile address.  I want to ensure it passes NCOA (National Change of Address Database) to make sure it gets to where I need to go and lower return mailings.

• First spot, assessors database, check address there.  But sometimes this is outdated.
• To double check a lot of counties and cities allow the payment of real estate tax bill online where the public can view.  I search "My town" + pay bill online in Google.  I see if you can pay tax bills in the area and if so, I find their bill and almost always you will get their current address.  By far the most accurate.

1. 4. Make any adjustments in my database
2. 5. If you want to find phone number, use yellowpages.com or my favorite zabasearch.com

Definitely can be time consuming and I use this process primarily for my DFD as the mailing address is almost always different then property address.  It's starting to become beneficial.  All it takes is 1 to come back and make you money for it to be worth it.

Hoping in the near future to have a VA take this on but it's what I do for now.

@Erica Nagle

 the quote didn't get my underline but I was specifically referring to the "waived the inspection" part.

@Erica Nagle

Just reading this seems like a messy situation. I get it but even if end up pulling out of this and losing the money, the amount of you learned is invaluable. Of course, that's the last thing you want to do and if they give you a hard time about deposit, you could hire an attorney to review the P&S and see if there is an escape route you could entertain. At least you won't be out everything.

But I think the moral here is there need to be more a process before the initial offer, definitely more due diligence and safety. You always want exit strategies and the review of the P&S/contract is unbelievably important. You want to make sure you understand everything.

And did I read this right.

No, no, no.  Don't do that.  Ever.

Might end up being an expensive mistake but I think you have options.  First it doesn't hurt to ask for the deposit back and bulk up a bit, have your agent protect your best interests and let them know you will work with your own attorney on this.

You'll be fine.

Kyle

@Crystal S. - I have a bid out on Hubzu currently and was hoping you could share this information. I read their "sample" P&S and not sure how one would go about negotiating the P&S and if they are receptive to adding additional considerations/clauses. Seems like the only way would be to get it under contract agree up on it, find an investor and pretty much double close.

Would be interested to see your experience/perspective.

@Joshua Blond

Go for it. Get a P&S with an assignment clause saying you can assign and I agree, let your buddy know your intentions, friendship gets messy but better to be honest. Find the buyer and go from there. Or maybe work out a deal with your friend. I duno, get creative. If you know there's a deal to be made then no excuses make it happen. Real estate is about making calculated leaps and taking action. Don't think for too long, just do.

@Rob L. I'm not sure of any other way, I'm sure people could chime in and offer their two cents but if you're doing two to three separate properties a year with different investors, it just makes sense to create an LLC for each, although maybe a bit more expensive. Just the right way to do things. Don't do each one through a lawyer, maybe the first one to get an understanding but the creation of an LLC is pretty straight forward, simple. They upcharge for free services like applying for an EIN number. I got a few quotes from lawyers in MA and each was over $1100.00 including the state filing fee.

After some research, about 5 minutes of my time instead of paying $1100.00 I paid $603.00 through setting up through mycorporation. The most important thing is the operating agreement here. Again, I would sit down with a lawyer just for the Operating Agreement pay a little bit, as it's the most important piece of paper in a Multi-Member LLC, get a firm understanding of the language and that's it. From there on out, make your own and never be charged for it again.

Good luck.  I'll be interested to see if anyone else chimes in here but from what I understand, this is the best, safest way to do things.  What's a few hundred bucks extra if your making thousands.

@Jennifer Griffin

 thanks for the insight.  Thinking about it, I think that could work for me.  Thanks again.

Figured I'd get peoples insight here.  Has anyone successfully had their address verified by Google Business guidelines but do not have a physical business location? A goal of mine is to have a physical location in the coming year or so but for now, we are shying away but would like to still reap the benefits of what Google and SEO can do for us.

@Matthew Gallo

 Any initial rehab? 

25% is quite the amount, if the numbers support it, maybe not put down so much retain the equity and use it expand your portfolio down the road?  Alot of times putting more down isn't always the best, you should balance cash flow with potential future productivity. I'll upload a document for you that might be nice for you to review.

@Matthew Gallo

let's get specific. What percentage are you putting down, is their PMI? Are there initial rehab costs? If so, how much? Did you account for 5% vacancy? Are you buying and placing in a entity or just buying and placing in a trust? That adds to closing costs. Before you do anything, know every single bit of detail about this property and the surrounding areas.

Thanks,

Kyle