All Forum Posts by: Rocky Verteramo

Hi guys!

I am looking to by my first for sale by owner rental property. I feel more comfortable going into it with my broker. What is the etiquette of this? What should be the correct questions I ask the seller? Should I ask them to pay a percent or 2 to my broker for setting everything up? And how do I make sure I am taking the correct steps to make sure I'm not getting screwed?

Thanks!

Rocky

Hi guys! Do any of you know about the company Home union (homeunion.com) I just came across it a couple days ago. Not sure what fees and such are, or how legit it is, but sounds like something could be good about it. I always worry without knowing! I'm not saying I would jump at it, but I like the idea. It's how I invest with a friend of mine, where I do the investing and he does the finding and deals, only with this I could possibly find more without having to stay local?

Any thoughts or pointers would be appreciated!

Hi Guys,

I was wondering, on a rental property, are there any tax exmptions? 

For fix and flips, where I will be an investor only, then sell the house to a buyer, then pay my partner his portion of the profit. Do I need to worry about capital gains? If so, when?

Thanks!

Thanks Jay. I am selling a flipped house through a firend that I work with for a total of 25,000. The closing costs are said to be 3,000.00. I was wondering if that sounded high after the broker gets paid plus closing costs. I will do as you suggested! 

Thanks!

Hi Guys!

I live in Indiana and I am in the process of investing in my first fix and flip. When I sell the fix and flip, 

1. what normal costs can I expect? 

2. what are usual percentages of those cost (i.e. brokers fee)? I know these numbers I just want to see what the norm is if at all possible.

Thanks!

Hi guys! I want to get into private money lending as the lender. Any advice on a book or area of BP to help me understand exactly how it works and the best forms of private lending habits I should follow?

I just recently lent a $20,000 to a group in return for collateral of 2 or their homes that were already rehabbed and each worth about 25-30,000/home. Before lending the money I was able to put both quit claims under my name as well as have the titles searched. The loan is for 3 months at 10% of the entire loan monthly, with my lent amount sent back to me after month 3. If I don't receive my full amount back at that time, I will sell the 2 houses for obviously more than my investment.

Other than that, I have no experience on this or where to look to do more of this. I do have a friend who set the above deal up and I will do many more like these in the future, but thought I could pick your brain about this and gain any ideas or advice you may have.

Thanks!

Hey guys,

Update on the above deal. The 10% / month is not annual, it is 2,000 for each of the three months of the loan, equalling 6,000 in total for the life of the loan.

The 2 homes at value of at least 20,000 / home will actually be quit claimed to me, so they will be in my name before the money is handed over.The borrower has 7 homes to sell in a bundle, 4 homes are siting finished and ready to sell, and the 20,000 that I would be loaning is to get the other 3 fixed so the sale can happen. They feel the risk to put up 2 of their homes is better than having to wait to sell all the homes. Should I feel more comfortable now that the two homes will be quit claimed to me in my name before the money is given, as long as I know the value is the 2 homes?

Thanks for the advice!

Darren and Brian, thanks for the advice! I will cover the bases you wrote about! I've since spoken with the people I would he lending to and said the money is there's if my lawyer draws up the contract and I am able to find out from other sources if these homes are of value they say or like you said Brian, ones they don't care to get rid of! 

Julian, I also saw on your profile you are investing while a partner does the managing. I have started the same deal with a friend of mine. We split profits 60/40, 60 going to me. Is that how you have it set up?

thanks

Hello Julian, It's 10% of the 20k, 2,000.00/ month interest for 3 months.