All Forum Posts by: Justin Morris

Bloomfield

Thanks for the feedback gentlemen, I am not going to set up a business entity at this point. I would like to do one successful deal before doing that because I don't want to create something until I see some real results. I would be doing my first flip under my own name, I'm assuming that doesn't make any difference in terms of taxes?

Looking for a CPA or accountants advice about the tax implications of fixing and flipping a single family home. When I resell the home do I just pay standard income tax or do I pay capital gains tax as well? Can I deducted the purchase price of the home, plus all the rehab costs from the money I would be taxed on? I am trying to understand in detail what percentage of the profit I expect to loose in taxes from flipping a property.

Does anyone know any decent and reliable contractors in the Great NYC/Northern NJ area? I am looking for a couple of referrals, if anyone could help I would appreciate it. I'm looking for someone who will do small rehab jobs(20k MAX) on single family homes.

I've been posting a lot through my beginnings in REI and I'm trying to firgure out what the best course of action is at this point. I have two investors that are willing to invest in me but want to see a plan. The issue is I'm not sure if a business plan per say is the best way to present this idea to them. The reason I say that is I haven't done any deals and I don't have team of people behind me. I don't feel like I can build that team before I have the real capacity to do a deal. For instance I cannot go to a realtor in my area and say hello so and so I'm a wanna be investor and I want you to be on my team. Would you be willing to help me sell houses and pull comps for me when I'm buying? Because they will say ok do you have a house to sell now? I'll say no and they'll hang up on me. I feel like I need to do a deal first so my future team that I seek out during this first deal will know I'm for real and will want to create a long term relationship with me. That being said I think a better idea would be to come up with a plan to present to my investors on how I would do my first deal, my profit numbers and exit strategy. What does everyone think? I'm thinking maybe finding a real deal first that I could base the proposal around maybe the best plan of action for me. I'm open to all advise and suggestions. Thanks.

Hello all

Does anyone have a business plan they would be willing to share with me? I am looking to create a plan that I would present my investors that ate interested on working with me. I am looking to start flipping properties to build up cash reserves and then begin to build a rental empire that will bring us long term returns. I have a pretty clear of my ideas I just want to see how other people have prepared their plans and what I need to include.

Thank You Kindly,

Additionally what are the taxes on my profit when I flip the property? Is it just fed and state income tax, plus transfer tax? Someone just told me its a 45% bite out of total profit!!! Is that correct? I thought it was around 20%

So if there is only one comp that fits that profile you spelled out Julie on Realtor.com where can I go for more?

Thanks Julie!! How much is an inspection?

First off I would like to thank everyone here on BP for all their insight so far. I've been fortunate to have found this forum! I have secured two private investors that are willing to invest in deals that I found and execute. I am interested in doing fixes and flips and I feel that the best way would be to start out small of course. I'm looking to do a single family home 60k max with 15k max repairs and flip it for a minimum 25k profit. I've come across a few potential deals but they have all been to good to be true. Deals isn't what this post is about though, I just wanted to give you an idea of size. These investors want a very detailed plan once I find the deal with a solid exit strategy and figures on how there investment will be returned. I am very familiar with the overall fix and flip concept but I need to make sure I am clear on everything so I can move forward when I find a great deal.

My understanding of the process is this, once I find a deal, run comps, visit the property with a contractor and do my due diligence. A purchase contract is signed between myself and the seller, at this point I give them my downpayment. In this case since this deal will most likely come from a wholesaler it'll be a cash sale and 10% will be due. Then the purchase contract is sent to the title company along with a copy of the check and we wait for a closing date to be chosen(it'll be within 10 days, the investors I am working with would be paying cash and there would be no financing involved) Then I show up to the closing with a real estate lawyer and the reminder of the principle plus closing costs in a check. In return I receive the deed to the house along with all sets up keys.

Now I own the house, I immediately bring in the contractor that I brought with me to look at the house. They do the work that is needed and I check in on the project every coupe of days. Once the work is done, I get the home cleaned by a professional cleaning service and I put it up for sale. I would be selling in on my own, using online services to get it on MLS. I figured I could so this easily since I would putting this home up for less then FMV. When I accept an offer from a buyer I bring a real estate lawyer to closing and they take care of my side of things. At closing I had over the title, keys and I receive a check for the agreed on price.

Questions I have:

How much do R.E Lawyer cost for closing services?

Do you get a home inspection on every property you flip and how much are they?

Can you get a contractors bid on a home before you've purchased it? If so for a small job like 10 or 15k would you just find a smaller handy man or contractor to do it then going with a general contractor that will be more expensive?

What is the best home owners insurance for flips?

What about title insurance, is that part of the closing costs or an extra cost?

How much are title search services?

What is a good exit strategy? Making sure there is at least a 30% cushion when you buying?

Is there anything I am missing or have forgotten?

Thank you all in advance for your help! In excited about doling my first deal and I just want do it the right way.