All Forum Posts by: Mo Sheikh

@Tim Harper Welcome to BP! This is an awesome community with a ton of knowledge and information available!

I'm in Houston as well and am always looking to network with local investors. Feel free to reach out to me if you have any questions! 

Welcome to BP! This is a great community and there is a ton of information available! Feel free to reach out if you have any questions!

I wouldn't split the profit of the deal with the GC if that is what he is proposing. Generally they will just tack on their fee to the repair bid. We have used 2 GC's and both just added 5-7% on top of the repair bid for their services.

We are still experimenting with it. We've done one flip and have been close to two more deals from direct mail, but a lot of the calls we get are tire kickers. 

The key though is to send them out consistently. Our first 2-3 mailings we barely got any response. It wasn't until the 4th and 5th mailing to the same list that we started receiving a decent response. We've spent about $2K total on mailings over the past 6 months and closed one flip for $26K so it has been worth it so far!

One was from direct mail to out of state owners in our farm area and the other was from a referral from a coworker at my day job.

It will depend on whether their is room in the deal and your personal tolerance for risk. I would talk to a few lenders and see if they would be willing to lend to you based on your experience level and cash reserves.

We didn't use hard money on our first two deals but entertained the idea. Ultimately we wanted to get some experience under our belt first, and wanted to be sure we had the cash reserves to pay off the loan in the event things didn't go as planned.

Congrats @Jonathan Bonck, the first one is the toughest! You guys did a great job on the rehab, keep us posted.

Congratulations! It seems like there are a lot of deals out near Spring!

We created an LLC for flipping mainly for asset protection and saving a bit on self employment taxes. We aren't making enough revenue yet to justify electing to be taxed as an SCorp, so haven't realized the SE tax savings.

Another factor is how you will fund your deals. Most hard money lenders I have spoken to will only lend to a corporation (LLC, SCorp, etc). I imagine private lenders would prefer the same.

In my opinion it's worth the money to set up an LLC for peace of mind alone. You should definitely speak with an attorney and CPA about your plans, they can provide the best guidance.

@Deondra Carter We pulled the list ourselves from the tax records and filtered based on property zip code, mailing address, year built., etc based on what sells in our markets. We previously purchased a list from a broker but the data was almost the same as what we can pull ourselves.