All Forum Posts by: Ralph C.

I'm in Florida, but I just got a 1555 square foot 4/2 house painted inside and out for $1250. The guys aren't licensed or insured, but I don't care because I have my own insurance policy. I found them on Craigslist and they were hungry for work. How hard is it to paint? They did a good job and I'll use them on all my flips.

$1250 plus cost of paint. I am of the opinion that contractors will always try to take advantage of you so why use them unless they're absolutely necessary?

@Peter Tverdov I would still be getting a good umbrella insurance policy regardless of LLC or not. Even after I refinanced and pulled my equity out of the rental property, I would still be at risk for my other assets to be per suited such as personal finances, my home, and possible upcoming properties.

I am currently waiting for the bank to tell me what they have for a due on sale clause, I have read that many investors understand that the bank could take the property if you switch the ownership to a LLC after purchase. Although this is rare that they would actually follow through with it.

@Ann Bellamy regarding #4, I feel as though there are many investors that purchase properties using conventional %20-%25 down loans and don't use commercial loans, especially with 2 and 3 family rental properties. I could see where a commercial loan could be necessary if I was purchasing a 4+ family unit.

Thank you @Rick Baggenstoss I learned my lesson a few weeks ago after I spent $500 on a class that lead me no more but to signup for Next course. I will take your advice and explore more on BP! 

Hello,

I am a 24 year old in north nj area, who has been introduced to the real estate investment community. As excited I am to start this journey, I am a little overwhelmed coming in. (who can relate) ?? Someone advised me to start with wholesaling.. My question is wheres the  best place to find properties.. )if there is that secret place...??? please help!!!

@Rick Baggenstoss I have a follow up question to this. I'm assuming the name of the LLC does not matter in regards to which is a parent and which is a baby LLC? I have 4Mconstruction LLC that I have had for years for contracting. I plan to do flips and buy and holds under this LLC when starting. Does this seem fine or I need to create a 4Mhomes LLC as a baby under the original? Any thoughts?

Hi, all! 

@Raymond Northcutt and I are looking into beginning an LLC, and we have more than a couple questions. We've started doing our own research, but have a lot to learn and were looking for some help. Ray just closed on his first investment property, so getting protected is our main goal.

Here's just the tip of the iceburg: 

1. If we set up so that the parent LLC is a member of the "baby" LLC, can funds from the parent LLC be used for the baby LLC? We are thinking of having a number of baby LLCs depending on the region or type of property.

3. I read something about "split equity" between the parent and baby LLCs, and have tried to track down some more information without success. How does this work? The quote is as follows: 

"Try 'equity split' to protect your assets. This is a method to group all or number of properties in #1 LLC, then create #2 LLC that holds the note for all the equity in #1 LLC." (Thanks, Denise NA!)

4. Where should we establish our parent LLC? We currently live in GA, but have plans to move out west in the near future. I see that Texas, Nevada, and Delaware are recommended; what are the advantages of these states?

I'm sure more questions will arise, but this is where we are started. Thank you so much for your help, in advance! 

Hi, my name is Vernon. I'm a newbie in the Atlanta region. Currently, I'm a bird dog for a friend's company in california. He wants mainly wholesale deals and fix and flips. And I find some good deals left and right. Ready to make an offer and sign away. I was told to go through him for contracts, hard money, etc. But, when I call or send a message, I can't get in contact w him at all. And by the time he reviews the deals it's already gone. I'm going to start my own llc in the next week or so. Any advice?

Thanks 

Thx.

Hey everyone.  I'm getting my license around the end of May/beginning of June.  As that day draws closer though, I've been getting more and more nervous.  No matter what I read or articles I find, I feel like I still can't find the right place to start.  I was thinking I would go door knocking in one of my target neighborhoods with business cards and literature.  Do you think this is a good first move?  What did you do on your first day to get the ball rolling?