All Forum Posts by: Raj Patel

@Doug Bainbridge,   

No problem Doug.  If you ever have any questions  I will do my best to answer to the best of my knowledge.  My biggest challenge was my own personal fear of the unknown since it was all so new to me.  But the trick for me was to power through it as i met new challenges.   One tip that i think might help is make sure to let your passion guide you.  Don't let friends or family persuade you otherwise.  As i met challenges along the way, instead of worrying about them, I pushed myself to just figure it out.  We have so many resources these days at our disposal.  One example is "Bigger Pockets".  :) 

Best of luck!

Dear BPers,

Today, I can finally say, I've taken the plunge and completed my very first real estate investment transaction.  I can honestly say that it probably wouldn't have happened if wasn't for Bigger Pockets and it's community.  Yes, that means all of you.  A huge thank you to Josh Dorkin, Branden Turner, and yes, Mindy Jenson.   I have been pumping myself up by listening to the BP podcasts every chance i get.  

So, today, I closed on a great flippin deal. :) I bought an 1800 sqft SFR HUD property near my home. The intent is to rehab and flip. The asking price was 60K. I won the bid for 55K. To the best of my knowledge, the estimated ARV for this home is apprx. 150K.

I am extremely excited to get started on this project. Most of the repairs are pretty cosmetic so I hope to complete and sell it within 90 days.  

I've learned everything I know about Real Estate through Bigger Pockets.  Between the forums and Podcasts there is a treasure of information and knowledge.  I found my first flip deal in my local area.  I will be closing on the property in two days.  Once i complet my rehab and sell the property, i expect to make at least a 40K profit.  Fingers crossed! :)

Thank you everyone for all your insights!  I wasn't terribly stressed about it but just wanted make sure i wasn't being ripped off.  Maybe I can negotiate this with a discounted commision when it comes having her sell my flip after the rehab.  :)

Is it typical for a buyers agent to charge a $500 compliance fee?   Any feedback would be much appreciated!

@Greg Scott, @Jason D.

Thank you Greg and Jason for your insights!  I already have a contract amendment that i need to sign.  I had hoped that i should be able to change the name.  I will pursue that first.  

For the future, I still hope i can figure out if a multi-member LLC would be ok without causing headaches down the line regarding taxes.

Thanks again!

@Greg Scott My current dilemma is that I already have a HUD foreclosure property under contract, with existing name. Can i continue with closing and worry about new name later? Or will that complicate things?

Hi @Greg Scott, did he mean to create a new operating agreement or a new LLC?

Hello all!
I was preparing for my first fix and flip investment. In the process, i decided that i should create an LLC. I went ahead and set it up as a multi-member because i have my cousin as a partner on this first one.Then, after some sole searching, decided that maybe it would have been better to set it up as Sole-Proprietor. That way, each of us could have our own entities and still work together. Then later, when we are ready, we can easily split up and continue on our own. Unfortunately, it doesn't seem like there is a simple way to change the LLC from multi-member to single-member. I feel like I'm stuck with the multi-member. Will that be an issue during tax time?  I believe that i can file a form 8832 to classify it as sole-proprietor.  So, the question is...  Will I be ok if i leave it as a multi-member LLC or should i try to correct it to a single-member somehow? Any thoughts? Much appreciated!

I just won a HUD bid for 91% of asking. I was under the impression that there would be multiple bidders out there. So i bid a bit higher than I normally would, with an inspection contingency, just to get a better chance at winning the bid.

@Noreen Eddy, is it true that the agency fees come out of the bid amount?  My agent gave me the idea that i would be paying them the fees directly.  Maybe I should have her double check the facts?