All Forum Posts by: Ray A Delfi

@Edd Newkirk no, as long as you are only assigning the contract. But if you plan on holding properties, going in with a partner, or scale it into a business then I would suggest it. When you are the sole member of an LLC it's no different than you doing it with out one. You income still gets rolled into your personal taxes. Bottom line, It's an expense that you can do with out. Next time you do your taxes ask your tax professional or CPA what benefits it would provide once you explain the operations of your business and who if any will be conducting business with you. Remember you can always 1099 employees as independent contractors to avoid the Human Resources requirements and salaries and wages. Hopefully the information I provided was helpful, but wanted to be as general as possible as every state is different and you should always conduct research with in the specific laws of your state, county and city.

@Kelvin Duen what’s up man, small world. Give me a call on this one. But to provide some advice, remember as you said, you have to think about the end buyer, is it something you would buy yourself or offer to friends or family. When you walk through spend as much time with the seller ask open ended questions and really strike up a good conversation with them. Make sure you ask what’s their next step after they are able to close this chapter in their life, you want to know what is really motivating them and what are some other options/exit strategies that they would be able to agree on if the price isn’t right. During your conversation with them mention that you are going to circle back and take pictures and make sure they are alright with that. This will give you a chance to take your time and take some good quality pictures with out any distractions and also be able to be attentive and present during your conversation with the seller. If they don’t live at the property go early and take the photos and inspect the outside. Print out a inspection checklist and memorize most of it, but take it with you to keep you on task. I have one I could send to you. Remember also keep your mindset as helping the seller out of a situation and also providing an opportunity for a buyer, balance is important. Be honest!

@Maxwell Fontaine lease option is pretty straight forward, but have your attorney draft the documents. Make sure to separate the Lease from the Option to buy contracts. If they default on the lease you can handle that case separately and ensure you have the Option to buy contingent on them being in good standing on the rental lease.

@Danni Catambay the key to wholesaling is finding properties off market (properties that aren’t listed or represented by a listing agent). This is done by finding certain key traits in a home, Vacant, owner that lives out of state, pending foreclosure, etc, these are most likely owned by motivated sellers (people who would do just about anything to get out of the property). The whole dealer finds these properties through several resources, but too many to list here, however almost every “Guru” on YouTube explains where they find these properties but really don’t show you how, it’s something I learned myself being computer literate and awesome at google. One way I found interesting was going to the town municipal office and request a list of properties that had their water shut off (most likely vacant). Find their owners through public records and skip tracing sites that you would pay for them find their contact information. Send them letters, or call them and negotiate a deal. Then sign a contract with them and assign that contract(or sell to a buyer who doesn’t have the time to chase and dig for these leads. It may sound easy but it is really hard and rather reach out to a experienced wholesaler for my leads. There is a guy “MaxMaxwell” that I followed for a really long time you can watch some of his videos, they are pretty dry, but he literally walks you through some wholesale deals he made from start to finish. Besides the art of finding deals and tracking down owners, you really need to know everything realestate, the language, the process, and what makes a good deal to be at all successful.

@Maxwell Fontaine great job! What’s your plan now with the property? What are the holding costs and the balance of the note?

@Andrew Schuster so the owner owns the land? What happens to insurance? How much does he want to walk away? Is there a note on the property? If so how much does he owe? How much to clear and drop a new MH?

@Cristina Ortega sounds like you were their agent... be careful with that but congratz!

@DeVora McCoy "if you build it, they will come" use the calculators on BP bring it here on BP to get feed back on your analysis and join a few REI groups on meetup or Facebook. If the numbers are good you won't have a problem selling/assigning the contract. We all know what the assignment fees are and we don't care, if you find a good deal you deserve it for all the hard work getting the deal under contract. I went to a meet up the other night and mentioned a property I was thinking of selling an they all stopped their conversations and flocked over to me and asked me to run the numbers. Then they asked how much do you want, then they said your crazy for giving that up... and here's why... They totally changed my perspective on my property, but if I was really ready to sell they would have snatched it up, after a good fight amongst themselves. The bottom line is networking and knowing a good deal.

@Jack Barnett by chance are you driving around in these areas? It's so much faster to find them. Take a picture and note the address and then search the public records to find the owners. I'm sure you will know what distressed or vacant by looking at them. Google street view is another option, though the images may be a bit dated but if you look them up on the MLS/Realtor.com and it's not listed or improved chances are it's still vacant. People also use Uber drivers or delivery guys to do their scouting for them. They actually use the DealMachine app and add them in their account it's a good way to track them and you get most of the public information of the property right away but requires a subscription. Hope this helps get the juices flowing. Good luck out there, wholesaling is tough, so feel free to reach out if you see something promising.

@Everett Schulte subject to the existing mortgage is a good way to take down a property if there is decent cash flow usually find these through tire landlords or owners trying to get out of the realestate business or out of state investors. I’m willing to take a property for 20k, with the loan in place with at least $200 cash flow (after expenses) for me to be able to refinance down the line with my own mortgage or lease option. The 20k is we’re you would negotiate the asking price with the seller and your fee. I can go in a bit more detail on this, but that’s the gist of it.