All Forum Posts by: Matthew Hull

Yes - jump in! How you do it is a big question, but whether or not to do it is not. Start now. 

I hear on podcasts about getting a title company on your team… what benefit does this give you? Don’t sellers pick their own title company? Or what would a title company be able to provide outside of transactions? How are you working along side title companies?

Great. Thanks, Jonathan!

Ok - thanks, guys! Super appreciate it! That helps reorient me - future deals will be written appropriately. :)

Thanks - those are great thoughts. I just listened to episodes 219 and 221 on the “Flipping Junkie” podcast and they talked through the same thoughts you two just shared. Thanks for the additional resources for me to follow up with!

Does anyone have a set of questions or things they think through or scripts or anything that helps them approach, talk to, and close on deals with homeowners when they approach them directly (whether through mass marketing, driving for dollars, or otherwise)?

Or maybe there are some resources you could point me to?

What are the steps to closing a deal with hard money? Does it go down like a traditional mortgage (funds requested at closing, checks written, etc), or do they hand over the funds to your account beforehand so you can put the money up as if it is cash? Or does it look different?

How are you writing your offers when they are funded with hard money?

My realtor and I recently put a cash offer  on a house, but in reality I plan to fund it with hard money. There is no “hard money” purchase option in the realtor offer forms, so cash kinda makes sense, but there is a spot for “other,” which maybe is a better spot?

The problem with a cash offer using hard money is it still has to go through their underwriting and there is a 3 week turn-around, so the deal would fall through if something didn’t work out. Or, I’d have to get an extension of the closing date, which kinda defeats the purpose/competitive edge of a cash offer. Also, if they are expecting I have the cash to back up the offer, but I turn around and say, “Hey, my funding isn’t ready yet,” or it falls through completely, they’d probably feel a little bamboozled and unhappy. 

If the underwriting goes smooth and I can have the cash on hand at closing, then maybe the owner wouldn’t care how the cash offer is funded. 

What do you do for this scenario?

What else is there to do on the house? What’s your total rehab estimate? Is this a $25k, $40, $70k flip?

Can you estimate the holding and transaction costs?

If you can get it at less than 50% of its ARV, you're probably in a decent place to sell it to an investor, but it's hard to say without more insights.

Guys - I was just quoted $5000 for the Trust package (Trust, Will, Living Will, and Power of Attorney), plus $1660 per LLC, which includes one holding company in WY and however many other LLC's you want to start. They provide significant discounts for Bigger Pockets members. The totals come down to $3000 and $550 respectively.

Red flags yet?

1st, I’ve had the Trust package quoted by a local attorney for $1700 in the past. That’s half the cost of Prime’s reduced rate.

2nd, like everyone is saying, the cost of setting up and LLC is less than $100… closer to $50… if you just do it yourself through the state (not complicated).

3rd, if you want someone to help you draft your operating agreement, hire a local real estate attorney and it will be significantly cheaper than $1660… probably cheaper than $550.

4th, if you want someone to do your taxes and help you get your max deductions - talk to a CPA who specializes in real estate and they can review your operating agreement to see if you’re setting yourself up properly, and they can do your regular taxes… and be cheaper than Prime. 

5th, a separate CPA can work with you regularly to review your investments and strategies to determine good tax strategies as you look to execute any deals. 

6th - don’t lock yourself into a crazy subscription model before you start making money!!! And then don’t do it after. Pay yourself regularly. Pay others when they’ve provided value to you.

7th - Prime is not smarter than your local folks who you can have real relationships with. They might be smart, but they aren’t the only smart people. You don’t need them.