All Forum Posts by: Lior Golan

@Tyana Blackledge

1031 exchange has nothing about business credit.

You need to speak with a CPA if you want to make 1031.

Everything else sounds like a normal flip. Just don’t count on 1031 exchange

Secondly, I will continue Eric's response, Go buy a book or two about real estate and learn the basics. I would suggest "How to invest in real estate" by BiggerPockets publishing. 

After that, you will start to get an understanding of what route you want to go, maybe it's rentals, Flips.. SIngle family or small multi family...

Gather some money because if you have ba bad credit (less than 620), you will have to bring at least 25% to the table, plus money to start rehab.

Then you will need to learn all the world of hard money lending, search for hard money lenders, how they terms works...

And yes sir, There are people who started it n their 50's... 

it's really a general thing what you are saying here. You basically cannot 1031 a property if you own it less than a year, unless you rented it out and then you need an exception to accept 1031 before 1 year.

After 1 year, regardless of the status, you can do 1031.

I would suggest you learn about credit, lending for flipping, flipping itself...

Lenders don't look at Business credit, they look at your personal credit. if you have low credit, the recommendation is to increase it but not mandatory. You can start investing without even credit at all, you just have to bring more to the table.

After increasing your credit, score, forming LLC, opening a business bank account, start searching for your first flip.

Find something that is not a big rehab, start with a small-medium rehab, earn a little money and then after your experience, go and take a bigger project.

Good Luck

 Good idea to use these apps. And about the local stores, I am foreign national so it's harder :)

@Gary Siver @Ken Naim

Good ideas.

I’ll offer him 50% for every every project but first I’ll ask some more investors who worked with him to ask them about his job (I’ll ask from him to give me).

I’ll update

@Manuel Villegas

Nope

Hello everyone.

I have a dilemma and I don't know what to do. I have this property that I bought on February 2020 and I found a contractor to start rehabbing it for me.

he eventually did me a ****** job but I got a tenant in place. after 3 months of lease the basement, that was finished by this time, flooded because of pipe bursting. I had to cancel the lease, let the tenant move out and start remediating the mold and re-finish the basement. 

Now because I had insurance, I used it, and eventually just after 4-5 months of back and forth with them, I got money to start doing all this. I found a different contractor which I got some recommendation about him from a plumber that I have used, decided to take him. But was turned out that he is too angry sometimes and he also bailed me on 95% of the job and got away!

Now, it has been passed 15 months since the acquisition, I thought that I will sell the property already but now I am stuck. I have a lot of little things to do and a contractor won't help, only handyman. So I started the pursue after a one a got one really nice, two brothers. He came by, talked about the job, talked about the terms... Which I want to pay every 3-4 days for the job that HAS BEEN DONE and not money upfront. I already got hit too much on this one from 2 different contractors and now after this 3rd one seems really really nice, has good reviews, has a certificate of insurance (Which is not fake, I have checked).... but he wants 50% down!!

Why I need to 50% down?? I am afraid that he will take the money and getaway. But I see his job on his Instagram, He and his sister has good reviews and just can't find other different people that are free in the next week or two :\ I had so much calls and I just can't find someone good that is free.

What would you do instead of me? Take this guy for 50%? or keep looking? 

(I already trued to lower him down to 25% and he didn't except)

Thank you

@Michael Orlando

It’s a small to medium project. Sending you a dm

Hi,

I am keeping to meet contractors/service companies that asks 50% down before even start the job!!!

I am trying to understand why??

Now I understand sometimes that in big projects they can ask for 10-15% down to gather some materials but other than that, why people don’t accept to be paid let’s say twice a week on a part of jobs that is DONE and not BEFORE DONE??

It’s really hard to find contractors, I have found some realtor nice siblings, good people… but they want 50% down before even start! And tried to explain them that I don’t work like that and they just said “50% or no job”. So I said bye….

I have a good experience with an other contractor that I have who I am paying him ONLY FOR JOB THAT HAS BEEN DONE! And this is how I think everybody should do.

What are your thoughts?

haha well I won't tell his name here as being a good person even though he is really not a good man