All Forum Posts by: Kevin Yoo

Ann Bellamy,

I really do not care if you know who the beneficiaries are and would tell you if asked. But do you know if by some law (in CA) that I must divulge the identity of the beneficiaries or tell a lender that the beneficiaries have changed?

Will Barnard,

I am curious to know how you use trust differently. Can you share that with us if it is a better way?

I am not in disagreement with the responses to the original post about the differences between an all cash offer and an offer with financing contingencies because technically the responders are correct. However, their ultimate advice not to make an all cash offer or to make offers only on certain sales like private or HUD flies against the spirit of the original question and the intent of providing advise to budding real estate investors. I disagree with the responses and I do so based upon my experiences of having bought many homes in my area all cash but then closed with hard money.

Edward, you need to get a hard money lender to provide you with proof of funds, then make an all cash offer with the proof of funds and a check for earnest money of a small amount like $5K if possible. You need to buy it as is without any contingencies, 5 business days for due diligence period after which the earnest money goes hard, then 5 business days to close. If you do not make an offer like this, no bank will take you seriously.

You must make the offer not in your name but in the name of a trust with you as a beneficiary. Otherwise, you will not be able to wholesale as you will have to close in your name and no rehabber is going to give you their money to have you buy it in your name. You can, however, sell your beneficial interest to anyone without the bank knowing this.

In the end, the closing will happen quickly and it will be all cash even though it came from a lender. This way you can put in offers on any type of property. But the most important point I cannot stress enough is know your buyers, i.e. the people you are going to wholesale to. You must buy what they buy and at prices they buy it at. If you cannot determine that a particular home at a particular price is a good buy, you will fail as a wholesaler.

Shannon,

I lend money for real estate projects around the country. I am not in North Carolina. I would lend you money but your post like so many others who ask for private money is short on details. I am most interested in what I get out of working with you. You have given no information on what the cash investor would be getting from working with you. Perhaps your post would appeal a lot more to me and others if you can as best as possible explain the returms would be for investing with you.

I have another home I want to sell in Sharpsburg, NC. I wonder if those that have sold a lot of homes in and hear this area could send me names of attorneys or escrow companies that they have used and like.

I am selling a SFH rental in Atlanta, Georgia. I need referrals to good closing attorney/escrow company. Please give me references based on experience.

So, Karen. Can you describe a typical deal for you in buying a mobile home park?

You should have an S-Corp to do your flips. Pay yourself a reasonable salary and take the rest of the profits in distributions. You have to pay self-employment and other income taxes on your salary and the capital gains tax only on your distributions. You are then not a dealer but an owner of a legitimate business and doing everything legally in the eyes of IRS. From this run every legitimate business expense through your S-corp. You are then getting 30% discount on your expenses as this is before taxes.

You should put your rentals in LLCs for asset protection. You can deduct any legitimate expenses in your LLC prior to any profits. The profits you will have to pay tax on.

I hope this helps but talk to good CPA.

YOJ Holdings, LLC has 606 Garfield, Oceanside CA under contract for $217K (71% ARV) and is offering this property to cash equity investors for joint venture partnership. It is projected to have conservative ARV of $305K. YOJ will provide the LLC corporate structure, the hard money, the construction crew, and the agents needed to complete this project successfully. We are looking for either passive or active cash investor.
Please refer to the spreadsheet below for the following points.
• The cash investor will need to provide all of the remaining capital needs which is projected to be $56K
• The projected time capital will be deployed and project finished is 4 months.
• The projected rehab cost is $18K and time to complete rehab 2 to 3 weeks as determined by contractor’s bid.
• The profits will be split 50:50 between investor and YOJ which is projected to be $15K each or 27% or annualized return of 83%.
• However, the cash partner will be paid guaranteed 10% cash on cash return and then preferred return of 5% first to the cash investor for a total return of at least 10% but more likely 15%.
All information and documents pertaining to this deal is available to you for review at https://www2.ibackup.com/qmanager/servlet/share?key=mbrx301291.

Zak,

I am looking for properties in Orange County. If you ever get a property you want to wholesale or want an equity partner, contact me.

Jesse and Raymond,

I have been wanting to get together with Raymond and have sent him some messages on another forum. I am looking to invest in rehab projects in San Diego. I will PM both of you so that we can get together.