All Forum Posts by: Richard Jeffries

A lot of great advice has been given already and I second everything that's been said. Great job getting out there and taking action,  but you're missing  one of the key actions in wholesaling.  No contract, no deal to be assigned. Any work done beyond this point with out a contract is pointless.  Without an assignable contract a wholesaler is insignificant. You need to sit down with the seller have the tough conversation and get him to ink the dotted line. If you can't do that you need to just walk away because you'll just be wasting your time.

You can think of a contract as simple terms that are agreed upon by two parties.  Whether you're looking to wholesale, fix and flip, or buy and hold getting a property under contract is simply putting in an offer and it then being accepted. Based on the way you're stringing the questions however, it sounds like you're referring to wholesaling. There are a couple of contracts here on bp, but I recommend having an attorney look over it to make sure it's compliant.

Welcome to BP Keishee,

I'm a investor in the southside of Chicago and the south suburb area. I focus on fix and flip and buy and hold. Feel free to reach out I would love to help in anyway possible on getting your business started, lending ect. I also highly recommend reading the book on house flipping as well as the book on estimating rehab cost. 

Best of luck to you

I have a Series LLC myself. That way I can separate my flip business from the buy and hold. I also can break it down further and separate each property to minimize systemic liability.

If you're setting up an LLC or any business entity for that matter you have to register in all of the state's that you do business. As far as IL is concerned they charge the same fee to register an existing business as it does to form a new one. For LLC's it's 600, 850 for Series. The| charge an extra 100 for "expedited" fee. (I.e. doing it online). When you start getting into registering in different state for its tax advantages that's definitely something that you need to talk to a tax professional about. As far as what professional partners you choose, I usually recommend professionals that are in the area you're doing business to my clients. I say this because not only are they Usually more familiar with the law and regulations, but they can provide great referrals.

I definitely understand what you're saying Bill, but from a financial planning stand point a HML can have quite a few advantages:

Limits Risk- deals go bad all the time "guru" or not so why lose 100% of the funds you put into a house when you could just lose 20% and the payments you made to date.

Opportunity Cost- I manage accounts that average returns in the high teens or low twentites. These are things that you see achieved through leveraged funds, hedge funds, options trading ect. So why would someone with "guru money" throw that away to save 4 points and 12%.

There is also the thought of just leveraging  your money to do double digit flips at a time. Thus exponentially increasing your cash on cash return.

So its all about your available options and your opportunity cost. So if you are looking at one deal at a time and you have available cash that you have stashed under a mattress then by all means. Every product has its place. Whether its conventional lending, hml, cash ect. its all about how we leverage it to our advantage as investors 

@Kevin Taylor welcome. Like it's been said many times before, BP has a wealth of knowledge available. The podcasts and blogs are great, but the best part would definitely be the people. People are incredibly generous with there time, knowledge and insights. So leverage the community to the max to assist with the learning curve. 

But make sure your landscaping is on point and that it showcases the best parts of the properties. 

It's out of your hands for the most part. Sorry to say, but your at the mercy of the market

 Definitely, I'm not sure if you're familiar with tax sales in Dupage county but I have partners who have benefited greatly from properties with tax liens. I know I'll be acquiring this year's scavenger list.