All Forum Posts by: Pat G.

Jay:

First get the addresses of each subway that you want to use as a starting point. Then search Google for "maps for plotting locations" or "maps for plotting several locations" and the following listing will appear - 

How to pin point multiple locations on Google maps

The 2 miles may be a guess, but you can be close enough. Compare the addresses on the tax roll and delete the rest. 

When you do it for one location write out each step on a sheet of paper so that when you are done you have step-by-step instructions that you are going to use to go over to Fiverr.com and hire somebody to do it or all the other locations. 

Hope that helps. Without GIS mapping software it is going to be labor intensive. 

Pat Gage

Ryan:

I had the same question the other day. The best guy by far for Private money is Alan Cowgill his site is: http://www.privatelendingmadeeasy.com and he just came out with an eBook for crowdfunding - http://www.privatelendingmadeeasy.com/crowdfunding...

Alan is the only one I know that has taken all his information to an SEC attorney and has his SEC attorney on speed dial for students. 

Disclaimer: I have partnered with Alan in the past and he has sold products into my list. We are business associates and personal friends. We were introduced through a mutual friend and mentor Ron LeGrand.

That being said his materials are very good.

Hope that helps,

Pat Gage

Jason:

Great question. First you can refuse to sell to anybody. An agent is there to get the best possible deal for their client. If the agent works with you, yes he/she will get paid. Now you can have the buyer pay for their realtor or have them pay your closing costs to make up the difference in the added expense of a realtor.

Because I am assuming you are selling your own home because lack or equity or just like to? Either way you can have that commission go on the Buyers side of the the HUD agreement.

Get an agreement in writing with the Realtor before you move ahead. You can ask to only deal with the seller, but they will probably say no (then why would the buyer need the realtor?). 

Hope that helps.

Pat Gage 

Derrick:

Awesome on the opportunities! 

I have lived but this rule - Trust but verify everything!

Make sure that the value is the value, not off of Zillow. 

First is that the market or going rent in the area for both homes? Meaning if both tenants left right after you bought the homes what could you really rent them out for. 

Are the taxes the new ones at your purchase price? If you can pay cash, try for a bigger discount say 50% or $40K for both.

Ask for the process that the current landlord used to place the tenants into the home - the background checks, credit checks, etc. If none, best look out!

Last but not least check with the city these houses are in about any special yearly inspections or permits you need to have rentals,  quite a few cities are cracking down on landlords. Make sure the numbers work with these numbers if any.

Best of Luck

Pat Gage

John:

Congrats on the new house. You can do this two ways. 

1. "Pool" your money with an operating agreement for the LLC that spells out everything (who does what, who invests what %, etc.) then find private lenders who will loan you the money to purchase the homes, not banks.

Use your pooled money for down payments and the like, if you have to, but use the bulk of the investors funds to purchase and rehad the home

Make your friends have non-voting rights in the LLC and say that they can't touches their money for X period.

You are correct on the additional loans from banks.

2. Create an LLC and build business credit for it with a Duns Number and then get lines of unsecured credit in the name of the LLC and off your and your friends credit reports. This way is slower and could take up to 6 months. - This is how the pros do it.

Good luck

Pat Gage

Brandi:

I used to do foreclosures and pre-forclosures here in MI and I used a service called the Legal News, by law they have to post the foreclosure notices in a public paper. Go down to your local court house and walk around and see the brand of calendars that are hanging in the offices - everybody loves free calendars. Also ask people in the court house where legal notices are posted. 

Using  a source like this one you get the info from the horses month, no third party. Also depending on who actually holds the sale - court or sheriff you may want to check at the sheriff's office to. 

I did my letters to the homeowners before they got the posting from the sheriff. I loved that! :)

Hope I was able to help. 

Lenny:

When I was RE investing with my now ex-wife we placed no more than 5 homes - valued at around $150K each into LLC and then we had a S-Corp that was the management firm which took payments and all the admin stuff. Now, is that the best way - need to ask your Real Estate(investor) lawyer and a Real Estate (investor) accountant.

The largest reason I placed each house into a LLC that on public record I owned nothing, but controlled it all. Now, yes with a little digging you can find out who owns an LLC, but 99% of the population doesn't know how to do that.

Even an LLC, C or S corp in the eyes of the courts is a separate entity from you and your wife, plus I love all the things you can write off against an entity that you can't against your W-2 wages. I am not a lawyer, broker, or giving any legal or accounting advice, only 20 + years experience and know how in the RE business.

- Given our plans and circumstances, does it makes sense to form an LLC for RE investments? YES

- Does it make sense to transfer our existing duplex into LLC (not sure if Wells Fargo, our lender, even allows it) - I am not familiar with how a duplex is coded for taxes - I am assuming non-homesteaded so transferring it into an LLC would not be a problem. Wells fargo won't care - they already have your names on the mortgage anyway. 

- Should we consider buying our next duplex under LLC? - Seeing that a duplex is seen as residential the mortgage company may not let you buy it up front in an LLC unless your LLC has a credit history and a Duns number. (more info than you need now). Definitely buy it and then transfer it at the closing table into you LLC - just have your closing agent create a Quit claim or Deed from you personally to your LLC. 

Later

Pat Gage

Mike:

I know Jay Conner personally and he is a stand up guy. He also does allot of JVing with Papa - Ron LeGrand. I don't think that Ron would JV with people who are not creditable.

As far as the credit card builders guys I don't know them, but know that they have been around the RE industry for a while. 

Let me also add - most all things in RE of whatever field you are in, you can perform these steps yourself. The reason there are "gurus" out there is because I like a lot of people don't want to spend hours/days/weeks/years figuring a particular system out. 

I sold a Credit Building course several years ago that I used in my RE investing business and it helped me gain several lines of credit, so upon suggestions of friends I developed into a course. Having technical training and writing in my background it was easy and fun for me to do. My point is I did take several years learning the system I put together and the whole reason for selling it was to reduce the learning curve of other people. And to make money -not going to lie there! I would rather follow the advise of somebody who has done it and can show me the land mines instead of me stepping on them.

Point is use a forum like Bigger Pockets to ask questions and for referrals. 

Scot:

Run the numbers on the tear down and then add 25% more and see if it will have legs. Also, are you financing this or is a local bank? Take it to a local bank and have them run their numbers, if they say no - there is your answer! 

See if the city has monies in the economic development fund for this type of project. 

If all else fails - Find another deal, walk away sounds like a lot of work for little $$$.

Pat

Jerron:

Need to ask the investors what do they mean by "in the process of becoming tax foreclosures". How far behind are the taxes and how much is needed to bring them current, you just need to pay one year to make that happen. Double check in the county where the homes are located in for that.

Next, find out what the houses are worth, remember to wholesale a property there has to be enough meat on the bone for the next guy. Ask the investors what they were looking to get out of the deal and see if it worth it. To be a good wholesale deal with repairs included it should cost you no more than 50% of the Selling price in that area. Again, meat on the bone for the next guy. 

Ask the other investors for the story on the homes, why are they selling, etc. That will tell you a lot. 

Get set up with a local title company to close the deals in and perform what is called "title peeks" - which is a quick title search to make sure there are no surprises before you place it under contract. A full title search will be done at the time of closing, but this peek is go for knowing how to proceed or not proceed with the opportunity. Title peeks should only cost $25-$35 well worth it.

Hope that helps, good luck.