All Forum Posts by: Michael V

I think this is their eBay store:
http://search.ebay.com/_W0QQsassZwholesaleac

99.1% rating is pretty good!

Thank you both for your advice!

I already have 2 loans that my parents cosigned for. I also have a unsecured credit card with a 300 dollar limit.

I spend about 30 bucks on the credit car each month and pay it all on time. I pay off every loan on time. The problem was that when I went to get my second loan my credit report didn't show the first loan (which I had for about 5 month) and my credit card just showed "50 dollars". The lending officer at the bank couldn't understand what that "50 dollars" was. That is why I need to check my credit.

I will definitely check out that CD/loan thing. Hope it will work if I do some homework!

Thanks again!

EDIT: TransUnion Credit score is 683. Is that good?

Edit 2:
My credit card company wont report the limit on my credit card to the 3 credit unions. Is that good or bad? It just shows that the average balance is 17 bucks..

I need to find out what my credit score is.. How do I go about doing that? (Pointing to a good info website will do the trick).

Also, what is the best way to establish credit? (19 yo here)

THANKS IN ADVANCE!

Well put. I think I will bookmark this page and look at it whenever I need to focus myself.

Originally posted by "Minna":

Whether you pay them before or after, it still comes out of your profit. But I would definately have it checked out. Everyone says all they need is "some fresh paint". I've rarely found that to be the case.
Not trying to burst your bubble...I made a lot of mistakes on my first rehab, including WAY underestimating my repair cost and it cost me big time. Just trying to pass on some wisdom.

I really appreciate that. I will have some professional contractors look over the property and ask them for an estimate. I will work my budget around the number that they will give me (multiplied by about 2 just to give me an extra cushion).
Anything else I need to think about before jumping in?

Originally posted by "Minna":

I'd have to add 2k doesn't get far. Before you get into this deal get an ACCURATE cost of repairs and take that out of the 70% as a purchase price.

2k for supplies. My friends wont get paid for labor until I sell the house. The house needs some interior paint and finishing touches on it. Everything else is in very good condition.
Edit: The reason why the owner wants to sell so cheap is because he wants it done fast. A couple of previous buyers' financing fell through, and the owner is just tired of paying taxes on the property.
I am going to get a third party estimate on repair and definitely get osmeone to check for mold/termites etc.

Thanks for the advice r2d246!
I am planning on doing more flips. As for the Realtor, I already have a friend of a friend that I talked to and she is on board.
Good advice on the Home Depot card, but will they issue one to an LLC? Or can I do that though me?

Originally posted by "Rehab702":

You can do business with buddies, however make sure everything is spelled out in writing.

If your friends are not partners you can have them give you invoices for their work and/or you could give them a 1099. It would be a good idea to talk to a tax pro.

You can find Hard Money Lenders with a Google search or probably right here on this site.

Go for it!

8)

In writing. Got it!

They are not partners. I will be the sole owner of the LLC.

Will use Google today.

I think I will!

Thanks for all your answers!

Hello everyone!

First, I want to thank everyone that participates in this forum for sharing the information that they know so that everyone else can enjoy the benefits of investing in real estate.

Second, here is a quick story of whats going on:

I'm 19. My credit is ok - 2 loans and 1 credit card for about 6 months. I pay all my bills on time. I have a few (older) friends that know a lot about construction - I basically have a whole rehab crew assembled and ready to go.
I recently found a house that is selling for about 30% below value of what it is worth right now. He wants $90,000. It is not in the best shape cosmetically, but overall it is a solid structure. After about $2,000 (my friends' estimation) of rehab, it could appraise for double of what the seller wants right now (other houses in neighborhood listed at the final (after rehab) appraised price). Best part - my other friends father is the owner, and the property IS NOT LISTED OR ADVERTISED IN ANY WAY!
Now, worst case scenario - the rehab costs $15,000. We still make money.
From what I have read a hard money loan would be pretty easy to get even with my fresh credit, especially for that amount.

Questions:
Am I too young to start doing this?
Friends (more like buddies) and business - do they mix?
Should I start an LLC to cover myself?
What forms do I need to have in order to pay my friends as independent contractors if I have an LLC?
How do I go about finding someone to give me a hard money loan in Detroit MI?
What is the worst case scenario that you see? Please post multiple ways things can go wrong so I can at least know what to prepare for?
What insurance should I get if I have an LLC?

I'm not a lazy person, so for the next couple of hours I will be on this forum trying to answer my own questions.

Oh, 1 more thing - what other websites do you recommend for learning everything about real estate and self improvement in general?

THANK YOU VERY MUCH IN ADVANCE!!