All Forum Posts by: Louis Van Der Westhuizen

@Wayne Brooks thank you for your response. 

@Patrick Sweeting thanks for your response. Just to be clear, if I'm looking to purchase a deal offered to me by a wholesaler, I am still at liberty to request a contingency period! But to be competitive, that period should be as short as possible to make it attractive to the seller. That makes sense, thanks again! 

Hello BP community

When you purchase a property wholesale is there a period of time during which you can do inspections, some sort of contingency period similar to when you buy from the MLS? How would you know if there are foundation issues and other hidden issues?

@Leslie Pappas thanks for the input and links to your blog. From my quick read, it looks like DST as referenced in your blog is a concept of fractional ownership in larger commercial scale properties that are managed in a DST. I'm not there yet. In my situation, I would be acquiring properties to flip or to hold rather than "invest" funds for fractional ownership of the larger pie. If I'm not mistaken, what

@Scott Smith is telling me is that I would have the option to use a DST similar to how a series LLC is used, I believe option 1 in the excerpt below.

Delaware statutory trusts are formed as private governing agreements under which either (1) property (real, tangible and intangible) is held, managed, administered, invested and/or operated; or (2) business or professional activities for profit are carried on by one or more trustees for the benefit of the trustor entitled to a beneficial interest in the trust property.

This is getting way over my head. :)

Thanks both for the kind input.

@Scott Smith Thanks for this thorough answer. I will look into this further. I have read about land trust so I assume the DST is somewhat similar. Thanks again,

Hello BP colleagues

I live in Southern California and from what I hear series LLCs are not recognized by the state of CA. I've also read (various sources) that it's a good idea to create a separate LLC for each investment property (buy and hold or flip), unless of course you have the option to create a series LLC. The min cost payable to CA each year for each LLC is $800 so you can see how quickly that would wipe away any positive cash flow. As far as flipping homes, assuming you create an LLC for each project, what are you doing with that LLC after you sell? I hear you should keep it going just in case there is a lawsuit related to that flipped property, but that would be really cumbersome and in CA really expensive, $800/year at the least. I would love to hear your thoughts on this, and of course, ultimately this is something I would discuss with a legal professional but until then, what are your thoughts.

@Cam Jimmy

Thanks for sharing, enjoyed this thoroughly. On to the next one!

@Mai Vo thanks for your input Mai, interesting stuff. Sounds like you have things in order.

@Caleb Rigby

Thanks for sharing and inspiring others that are just starting out. I have some great take-away lessons! As someone just starting out, with a passion for DIY and some experience using a hammer, I am struggling with where to start in getting financing for a first flip. I have a decent amount to invest in rehab cost, but not enough to outright purchase a place and we all know that to make it work in the flip business, you need to get the property way below market. So without enough cash, and never having done deals, do you know of lenders that would finance my first flip (do they exist)? And that said, from what I have read, getting a place from a wholesaler without cash in hand is pretty tough? Any advice? I am in Southern California.

Thank you that's helpful. 

@Jay M.