All Forum Posts by: Jake Kucheck

$10K/door might be too much or too little, depending on the MSA.

Karen Margrave I'm curious- would you consider an equity deal for 30-40 SFRs to be "going big" or "going home"?

Karen Margrave- not sure what you're asking about LTV... everything I do in the flipping world is cash or a wrap, no conventional financing.

As for Matrix... Matrix still sucks.

I'm not a member of one per se, but there are several. Only a few worth going to. Angel Bronsgeest and Shawn Watkins put one on the last Wednesday of each month, which happens to be two days from now. You'll find that some of the more seasoned investors attend their club frequently (myself included).

I'd post the info, but I don't know if that will be considered spam by the moderators. PM myself or Angel/Shawn for club info if you're interested.

The one thing OC flippers are starved for right now is deals. Plenty of cash sitting on the side lines (its easily in the 7 or 8 figures for most serious flippers).

Find deals, and the rest will come. But they have to be actual deals... no smoke and mirrors.

The info you'll need to provide is very simple: The address, and the price I can buy it for. There's a 90% chance I'll know whether I can buy it or not based on those two things.

K. Marie Poe I'd probably be more likely to answer directly if I didn't feel like I was being baited to say something explicitly that you think I shouldn't be saying publicly. The truth of the matter is, I have no legal or IRS issues with this approach, which has been confirmed by several attorneys and CPAs. I just kind of don't like your tone.

To answer your question though, read reason #2 in my full thoughts on this strategy from earlier in this post. You should be able to figure it out from there.

I don't really need any help with analyzing this strategy, but I do need help aggregating some data to help me implement it.

I have two questions:

1) Is there a place where section 8 rental voucher amounts for all major MSAs throughout the country are already aggregated, or would I have to search for this information on all of the individual MSA housing authority websites.

2) Is there a place that has aggregated data on median prices for homes with different bed/bath counts for all major MSAs throughout the country?

Any help with either of these queries would be greatly appreciated.

K. Marie Poe- of course there is a financial benefit outside of a manager's salary. To structure it any other way would seem to miss the point entirely.

Kama Ward- If I hear what you're saying correctly, it is that the biggest problem with raising funds in this manner is the accountability and transparency with which you must utilize any funds raised. Really? The lady doth protest too much, methinks.

Took a look at that other thread. Between that and my conversation with an attorney and CPA yesterday, it seems like the regular 501(C)3, with a traditional fundraising model, would be more effective initially. Then, once the idea gained some traction, the B Corp stamp of approval would enhance the ability of the entity to raise money from PRIs and the like, but would not be an advisable launching pad for the entity itself.

Here are my full thoughts on the topic. As I anticipated, no one has actually answered my question, so I thought I would be a bit more specific.

From what I can glean, B-Corps were created specifically to provide a vehicle for private foundations to allocate their funds to assets that generated revenue, but whose primary purpose was not profit.

If that's the case, it seems like a B-Corp would be a terrific entity for raising investment capital from private foundations for two reasons:

1) Since the primary purpose is not profit, far more properties can fit the model used to qualify properties.

2) Since many properties in C/D neighborhoods are not profitable but if repaired would increase the value of the surrounding properties that are profitable, utilizing a privately funded B-Corp in combination with a for profit enterprise would, in theory anyway, be a damn good way to improve a neighborhood, house by house, block by block.

I guess you guys are right though... I'm just silly and naive. This will never work.