All Forum Posts by: Account Closed

Hello,

My name is Lee and I am new to real estate investments. I purchased a program on real estate, rehab and flipping recently and one of the "perks" of the program was consultation/foot work for opening an LLC (I of course have to pay the applicable state fees).

However, in my introduction forum I got the impression that an LLC was unnecessary and maybe harmful to start with. (In addition to the impression that I should have never purchased the program, but that is beside the point)

Personally I like the idea of running a business, it makes me feel more accountable then investing as an individual which I feel leaves me more likely to be lazy or slack. I also have become frozen with fear at networking without a business name or "So and So investments" to introduce myself with. I don't know if this is a personal problem or excuse or this is business instincts saying I will not be taken seriously without a business structure in place.

Also I was under the impression that an LLC would help with liability issues and would be more likely to be funded by Hard money lenders and Gap funds. This is a very important aspect for me as I will be and can only be working with OPM. It was suggested by the program that I open the LLC before actually doing any business.

I am very conflicted now. Could I get some thoughts on the subject?

As always thank you so much for taking the time to read my post. I know all too well how precious time is and I appreciate you taking time out of your life to take interest in mine.

Sincerely,

Lee Nicole Salinis

@Bill Exeter

Thank you very much for that incite. That is the fundamental formula that I am being taught in the program I am in is to flip, 1031 exchange, flip, 1031 exchange, flip, 1031 exchange, then hold for passive income. (At least that is what the speaker at my seminar promoted) Is there something I might be missing or explained wrong? Or am I just being taught wrong? Thank you.

@Cal C.

I would like to eventually buy and hold but first I want to wholesale at least one or a few deals then I want to flip and 1031 exchange at least a few deals to fund the buy and hold. The ultimate goal for me is to have property that creates a passive income. My first goal is $2,400 a month, whether that takes 1 or several deals.

@Jean Bolger

No I have not considered that because I would not have the 3.5% down. One of the reasons I was interested in the program I purchased is because they said they would focus on purchasing/flipping real estate with OPM. That is the only way I will be able to do real estate because I do not have the money myself.

By the way it is not from bad spending habits or the like, it is from a poor major choice and low paying work. My credit is wonderful, and my job can be very rewarding, although draining, but it just pays squat. I am an assistant preschool teacher for 3-4 year old's at the moment.

Is it possible to acquire a property like a duplex or multifamily without having the cash to put down 3.5% or is there Gap funding for that sort of transaction for individuals? I am sorry if my questions seem mundane, I am just starting to learn.

@Rick Ford thank you for your comment.

Well as far as the program is concerned it is too late, I have already paid for it. I am still unsure of whether the flipping formula program was a good investment BUT I can tell you I probably would never have found or even looked for a site like this if I had not dropped the money into their program. And for fools note sake I paid $997 just for their tax lien program, then $1,997 for the 3 day seminar then $4,500 for a custom package which included numerous online training's, a consolation to create an LLC, and their propstream software. BUT that's not as bad as the people who paid like $40,000 for the whole package including other seminars and a mentor.

The reason I did it is my problem with just looking stuff up on-line. I know it is possible for like every subject now days But you never know how much is true, and the sheer volume of information is over whelming. I really need guidance to walk through all that information and a syllabus/course like lay out to be successful with it. HOWEVER, the more I talk to others the less confident I am in my purchase.

Thank you for the comment Karen.

I have been considering looking into becoming a real estate agent but I just cannot convince myself to go that route because it is not what I want to do. I would like to enter real estate as an investor not an agent. Although I am not totally against the idea.

Also, one of the motivating factors of wanting to move into the game as quickly as possible is that my family has a property back in Philadelphia that is in terrible condition and is in dire need of rehab. We have tried to sell it but all deals have fallen through. The property is in the name of 3 family members causing 3 people to be potentially liable to who knows what and I want to 1) protect my family 2) deal with this property as I am the one who has been paying the taxes and bills for the past 3 years of pipes bursting and no one living there 3) use this as a launching pad for my business. However, all 3 above goals need to be done quickly and getting a job becoming an agent or working in construction tacks months or years onto that agenda. Please let me know what you think, and again thank you for your comment.

Thanks for the comment Jean.

I am creating the LLC for both liability purposes and because I am under the impression that Hard money lenders and Gap funds are not interested in lending to individuals. It is both the recommendation of the program I am in and it seems legitimate that people will be more likely to talk seriously with a manager of an investment business rather than a person poking around at properties. Also I was under the impression that I could create a separate account for the business and apply for a business loan that way. If I am just applying for loans personally with my own income I will never qualify for anything because my income is severely low at the moment. I am a total novice so maybe I am wrong or have been misinformed or have it backwards but I was under the impression that if I was serious about real estate and wanted lenders to take me seriously that I would need an LLC or S-Corp to work with. Please let me know what you think. Again thank you for the comment.

Hello everyone,

My name is Lee Nicole Salinis and I am new to the world of Real Estate investments. Originally, from Philadelphia I moved to Hawaii 2 years ago after graduating with a B.A. in Psychology, because my mother needed help. I have wanted to find my way into the game of Entrepreneurship and Real Estate investments since I was a girl but lacked a path and the inspiration to find one.

Recently I went to a seminar on real estate investments.. I had read mixed reviews about the program but decided to join as I felt it would be a good starting point for me. The dream of opening my own business, owning property, and making my way in Real Estate has always been there, but recently it has become a more focused desire (well before the seminar) and I needed something to help push me into the game NOW.

I plan on opening my first LLC in the next week. I am excited and a bit nervous as I have only just begun my education on the subject, not to mention this is my first business.

For those that would recommend I take my time, I have found that with my personality, if I just continue to read about it I will never do it. I need to dive in and start getting my hands dirty, learning as I go if I truly plan to enter the world of real estate. Having said that I do not want to enter blind and am looking to associate with as many successful individuals who have walked the path before me as I can find.

I welcome any comments, especially on the LLC (I plan on completing the paperwork by Monday) and hope to hear from others soon. If you have any questions about me, my goals, my plans, the program I purchased and the prices (as I am sure people are curious) please let me know, I am happy to share.

Thank you so much for taking the time to read my post. I know all too well how precious time is and greatly appreciate you taking time out of your life to take interest in mine.

Sincerely,

Lee Nicole Salinis