All Forum Posts by: Michael R.

I use a s-corp to do my flipping from. The reason I will never by in my own name here is because the city likes to go after owners of properties with code violations. If you own in your name they may issue a warrent for your arrest if you dont fix violations and may go after you financialy as well. If your incorporated you have much greater protection and they might not bother you as much. First 2 houses I owned in my own name but now I have a llc for my hold rentals and s-corp for flips. I would not stress about it on the first deal. If you flip it and do well and want to do another then I would Incorporate.

Thanks for the reply Rob! I know I am always trying to save money and looking for things to cut. After studying how my attorney drafted deeds for the last few years I decided to do the last few myself and they worked out ok.
The only real problem is the cheapest attorney I found will be 700$ to draft a deed and record everything. I am in the process of looking for someone cheaper but cant seem to do any better.
I think if I go ahead with this deal though I will use an attorney anyway just to cover myself. Thanks for your help

In my markets its much easier to aquire directly from sellers. More than enough out of town landlords here that are looking to dump their houses.
I tried to by from banks when I started but by the time I would hear back from the bank I would have already found and closed deals with private sellers. Plus I get much better prices on homes from private sellers.

Hello,

I do not wholesale (yet). Usually I buy a property, take title, then sell it and transfer title to new buyer. I have a few deals a seller called me with and I would like to make some money off them. However I do not want to take title to these houses and am considering wholesaling them. My question is if I wholesail it can I make the deed for the transaction myself or do I need a lawyer? As long as I am not charging to prep the deed then I am not acting as an attorney correct? I prepare my own deeds for my usual flips but I am the recoreded owner of the property. I am not sure of the legalities of this being just the guy in the middle. Thanks

I love it. Probably would be some sort of code violation here though.

You really dont have anything to gain by cutting out the realtor. If this is your first deal maybe you can get an agent to represent you also being it wont directly cost you anything and you might learn some things.
Only time I went around an agent was when I suspected he was not presenting my offers to the seller. Sure enough he was not giving her my offers so we cut him out. Deal did not close anyway due to title issues so I do not know what the legal repercussions would have been.

I started in lower priced neighborhoods. First 2 properties I had financing but paid to much. After that I just bought really cheap and paid cash. Most of my rentals I paid less that 7k for and rehabbed myself. I recently sold a few after renting for a few years and I made decent money on them. If I were to start over I would buy in lower priced areas all cash rent for a few years and then sell.

I would not pay that much for that rent in my area. Also if the owner is not motivated I cant see him holding the note at 0% for 30yrs especially since you said hes getting older. You really are not offering him anything appealing. If he is older he probably would want more cash now or just hold on to it since he will make more than your monthly payment if he just keeps it and rents it out. My experience is with older landlords they prefer to get more cash up front and shorter owner financing terms. The younger distressed landlords give me the best deals as far as owner financing terms. I have gotten young landlord (around 40ish) to give me 15-30 year owner financing with no ballon- I have yet to get that from a long term landlord whos ready to get out of the game.

Only thing I will pay is trash, water, and sewer. If I opt to have the tenants pay these utilities and they dont pay they will add to my tax bill anyway. For that reason I will charge extra rent each month to cover these costs and I will pay them directly myself.

Cant give away empty lots here and it sounds similar to my areas. Most of the new properties are build by habitat for humanity and I think they mostly build on city owned lots so I dont know if who you would be able to retail to