All Forum Posts by: Gabe Cole

Wow, awesome Will. Congrats! Looking forward to seeing the photos!

Just got their 10k finder fee letter today. I was curious on what their angle was so I watched their short webinar. I was totally turned off when they started in on the "we can only work with a select number of people" BS so they wanted $1000 so they only get serious people. Then they call it a deposit that you get back when you find them your first deal. It is crazy to me that people would pay to sign up to bird dog properties for anyone.

Hi Tony,

Congrats! The house looks great.
How long did it take you from start to finish?
What was approximate cost/ft to build it?
Maybe you could walk us through some of the number, what you bought it for, cost to build and what you expect to sell it for.

Good luck!

@Chris Clothier
Thanks! That sounds like a great system. I have heard of salesforce before, but never used it. I will definitely check it out.

For those that have replied they are doing multiple rehabs at a time, is there any particular software or computer program you use to keep track of all your properties and rehab status?
Thanks.

Dash,

Do you have a CPA that does your taxes? I flip all my properties in an LLC and I think most investors are choosing to flip in an LLC or corp. In California I pay $800 a year for an LLC tax. The first year I had it setup I had to also pay an LLC tax based on the gross revenue or sales prices of the properties I sold, not even the profit. My CPA then informed me that he could file differently and have my LLC treated as a corp so I wouldn't have to pay this gross receipts tax. Check with your CPA for your state and he would be able to best guide you.

Personally, I wouldn't want to flip a property in my own name as I like the added protection of the LLC. It also shouldn't affect things if you use private money vs. your own as your tax liability should be on our profits after you pay out your lender fees. Hope this helps.

Thanks guys. I did speak with my broker and we will just have another agent in my office write up the offer and represent the buyer and I will pay them a small fee. I appreciate the feedback.

I am a licensed real estate agent and I am currently acting as the listing agent on a property I am flipping. I have never double ended one of my own flips before and a buyer is coming to me direct without a buyer's agent.

I am curious to know what other agents in this situation do when they double end one of their own flips. The question pops into my mind if I am duel agent how can one really be representing the best interests of the buyer when they are selling their own property?

Any feedback or ideas of what other licensees do in this situation is appreciated.

Thanks,
Gabe

Ned,

Thanks for the reply. Yes, he is familiar with the SEC regulations and he would be the one creating the PPM.

I agree on the 50/50 between the investors and the managing partners, I'm just trying to figure out how to split our 50%. I don't know how much ongoing work the attorney would have to manage once everything is set up. I know it would become a full time commitment for me. I am assuming we would have a CPA preparing all the accounting reports. The attorney may have some other management responsibilities with the fund, but I think it wouldn't take up too much of his time. I could be wrong though since I'm new to this type of structure.. At first look if the attorney and I split 50/50 he would be getting the better deal since it would be more passive on his side. Does that make sense?

Gabe

Hi everyone,

An attorney I know has approached me on starting an investment fund with him to invest in residential properties. He knows I have been rehabbing REOs, trustee sales and short sales with success and wants me to run the acquisitions and manage the rehab and sales of the properties. He has several high net worth clients that he knows would be interested in passively investing in the fund. Since I am also a Realtor I would also be able to list and sell the properties as well.

I wanted to see what some thoughts would be on a fair setup for this type of deal. We will likely offer some sort of preferred return to the investors and then a profit split along the lines of 50/50 on the net profits, but I would like your thoughts on what is fair between me and the attorney that would be setting this up. I am assuming we would both be managing members, would we split our side of the profits 50/50? Once it is initially setup he won't have much to do as far as day to day operations go as I will be the one doing all acquisitions and management of the deals.

Any feedback is appreciated.

Thanks.