All Forum Posts by: Courtney McCoy

@David Smith

I am working with them right now. Things have been going great thus far in the coaching and conversations we've had. Give them a call. They have a special process I am not sure I should post. You can get your LLC setup and get an EIN, but they have something else you can do to get funding easier than having an LLC. You still need an LLC to run your business, but they will set up another business entity in your name that you do not have to file or pay taxes on to facilitate getting the funding. Our Real Estate entities are considered a high risk category for banks and credit card companies, so we have to work around that to get funding. They will do this at no additional cost outside of the membership fee (it's $3995 if you go straight to the website, but if you watch their ~1hr+ webinar video, at the end they will give you a link to get it for $3495). All others (Seek Capital, Finance Factor, etc... all charge a 7.9-9.9% fee on the amount of financing they give you). So if you get $70K in funding (business credit cards, lines of credit, personal loans, etc...) from these other companies, you will pay $5530-6930. Fund and grow is flat rate and the fee isn't tied to the amount they get you. I am also working with Finance Factory as they have the lower fee. They are working on only Personal Loans for me as a start-up business, so not affecting my business dealings with Fund and Grow they are working on. To get the big stuff as a real estate investment company, you need to be in business for 2 years or more with 2 years of tax returns. So personal loans is the way to go. Each of these services offer credit repair help to remove stuff off your credit if needed. I only needed to have some hard inquiries removed to boost my score, but they helped to facilitate that. Fund and Grow also has a service they use to help with this for low cost, I hear it's worth it if you need it. After 6 months or so, both of these companies will work with you on a "Round 2" of financing, meaning they will go back out to help negotiate higher lines of credit for you on the existing accounts and try to help keep the 0% financing rolling for yet another 18-21 months.

Actual cash I had to bring at closing was $29,486 for hard money loan (12% interest, 3 points, closing costs, 70% LTV, ARV of $240,000, Purchase Price of $133,500, Renovation Budget $55k, 100% of the 55k renovation budget funded by hard money lender)

I am shocked no one has responded to many of these posts talking about Flipster. I am contemplating it myself and can't find much of anything to help me make a decision. 

Investment Info:

Single-family residence fix & flip investment in White House.

Purchase price: $133,500
Cash invested: $36,000

House is sitting on 2.9 acres. Approx $47k in cosmetic repairs - adding 800sf in basement, reverting garage area back into a garage (getting rid of patio doors and putting in garage door and opener), new roof, new gutters, new appliances, redo master bath and hall bath, paint cabinets and put handles on them (none are there presently), building out a laundry room area in basement. ETA 5 weeks renovation time starting February 15, 2019.

What made you interested in investing in this type of deal?

Wanted to buy something to get some skin in the game! This is my first flip!

How did you find this deal and how did you negotiate it?

Real Estate Agent found the deal for me

How did you finance this deal?

Hard Money via Longhorn Investment (3pts, 1.6% origination fees, 1.6% closing costs, 12% interest only - 1%/month). Offering 3% commission for my agent, 2.5% for buyers agent on the sale (5.5% total).

How did you add value to the deal?

Added 800sf of living space in unfinished basement. Added garage (most homes nearby do not have garages)

What was the outcome?

Work in progress - to be updated soon!

Lessons learned? Challenges?

I will post some as they arise.

FlipComp is $149/month. However, I do not like it's interface (disclaimer: I am a former IT guy). I also do not like its numbers. There are a lot of holes in the data. For instance, I am seeing the ARV coming in at like $60-80K below list price in the HOT Nashville RE market. Not sure where the data feed is coming from, so I end up having to do more work to find the right number. The concept of this software is good, but they need some Data Clean Up big time (Bad data in = Bad data out). One thing I do like about it is I can put in search words like "needs work, investor, investing, TLC, settle estate, etc..." and it searches the listing description for those buzz words.

@Drew Shirley

I am looking to do a few "subject to" financing deals (if I find the right people and I can help) and a few flips in 2016 (maybe 2 flips). I am still holding down a corporate job while trying to get this business started.  LegalZoom items they give are listed here: http://www.legalzoom.com/business/business-formation/llc-pricing.html (I am not sure what you get here less/more vs an attorney, but would think I'd get more customized documents with a local real estate attorney helping me.

@Matthew Kreitzer

Thanks Matthew!

I think I have it narrowed down on how I want to initially structure my new business (an LLC with S-corp destination so that I don't have to pay both Personal Income Tax on profits + Business Corporate Income Tax; I would only have to pay Personal Income Tax on profits).

It's quite a bit more expensive ($1,000-$1,500) to use Real Estate Attorney to get business started vs using LegalZoom for approx $350+State Filing Fees (for their Express Gold Service).

Two questions:

1) Do you think my structure is good (LLC with S-corp designation for tax purposes)?

2) Is it best to have an attorney do the paperwork or is LegalZoom easy to work with and won't drive me insane trying to take the lower cost route?

@Mark Nolan

Thanks Mark. I have setup some keywords. I am also going to research the Solo-K area if I decide to leave Corporate America soon