All Forum Posts by: Ronald H.

A deposit is usually always customary. It could be a Car or Bonds or Stocks, as long as it explicitly states what it is on the contract.

WHO HOLDS THE DEPOSIT>?  A Real Estate Lawyer representing you or the seller, or it can be a title company. I am sure there are instances where the Seller would hold it, but it is not recommended, especially with larger deposits. 

If you are the Wholesaler/Middleman then you would produce the deposit, earnest money and you would need to fund the purchase with either a Hard Money Lender, Private Investor. 

The good faith and earnest deposits would show up as a credit on the HUD.

NOD = Notice of Default NTS = Notice of Trustee Sale

Thank you Ann and Phil.

I guess that I will start with Ann. Yeah, Ann the primary and really sole purpose of the business is to make a profit by "Buying, selling, leasing, renting and joint venturing with partners to make a profit." That is the simplest way I can put it.

To let you know the aggravation I had today I will say that when tried to get an estimate for an LLC, I had to choose a Real Estate Broker profession, and their was NO option for anything else. Later on into the online quote process, they would ask me a question, such as "What is your Real Estate License Number" or something else that I could not provide. Aggravating!

Since my main focus is to wholesale, distressed properties, which could be vacant properties, out-of-state owner's, preforeclosures, short sales and probate leads, setting up an LLC for each one would not make sense, unless I were in the position where I was hiring the Contractor and he and his employees would be on the job site for a couple months, then the liability issues may warrant the extra expense, even though I would want the Contractor to have his own liability and workman's comp insurance. Am I correct?

In addition, if I later decided to rent apartments as a Landlord, I might also want to seek the protection of an LLC, along with the additional Insurance Expense. Please feel free to correct me if I am wrong, because networking is what it is all about.

NOTE: Yes, I do know that some Individual's purchase every property under a different LLC. I guess my question now becomes, "what is the trigger that pushes one to do this?" I guess it warrants a good hard look into the consequences.

Buying low, and selling low to make quick cash is the main objective and I want to do it right.

Again I ask, How much, are other 1 member LLC companies paying these days in Massachusetts for a 1 year, limited coverage, liability insurance plan. Most here are in similar businesses, so it shouldn't be too hard to discover.

Easiest way for someone to answer would be if they have formed an LLC already that is similar to what mine will be. A 1 member,

Tried to get a quote online for Liability Insurance in advance of starting an LLC. Well so much for that. Does not seem to work, unless you're already incorporated. So much for the 5 minute online quote that they promise on the wen everywhere.

The LLC will start out as a one member, manager managed company. I need the Insurance to conform with the Mass Law 211CMR24 regarding minimum liability coverage for llc's in Massachusetts.

I have already read the State's mumbo jumbo down below and I am not clear as to how much the state of Mass wants.

Any members here in Mass that can give me an idea of how much it will cost for a year's worth of minimum liability insurance?

Not related to this post but below shows the Mass requirement for the minimum. How much are they asking me to have, because I cannot understand their way of putting it.

24.04 (a) Says I need errors and omissions. This is an extra cost deal. I am clear on this.

24.04 (b) My interpretation of (b) below How much does this mean. It is a 1 member LLC, so multiplied by the members it should be $100,000.00 for each claim of at least $100,000.00 At least, I think. Since there would not be any other members in the beginning I would not need an aggregated amount of $250,000.00 for 2 or more members. Am I correct?

(2) Below, I think they are saying that I must keep a policy that will cover a claim of $500K for each claim. The Aggregate part below is confusing to me. What is it Top Limits on claims each year $1,000,000.00 ??????? for a 1 member LLC? Does aggregated amount have to do with more than one member?

http://www.lawlib.state.ma.us/source/mass/cmr/cmrt...

Below is the Mass way of describing the law

24.04: Required Insurance and Capital Program
(1) An LLP or LLC must maintain in good standing professional liability insurance which meets the following minimum standards:

(a)The insurance shall cover negligence, wrongful acts, errors and omissions and insure the LLP, LLC and their respective partners and members (M.G.L. c. 108A,

 Please have a Construction Supervisor's license and Liability Insurance.

All the great guys are booked up and I have had to look elsewhere to find good reliable Contractor's.

Been stood up waiting at a property and I am sick of it. Need serious minded Contractor to submit Bids on Rehabs.

Have Business Cards coming in on or about Friday. I probably should print some temporary one on my computer, although I am having issues with the computer.

I am working with a partner who can and does want to buy properties. I am finding properties and approaching the seller's and I have not got anywhere.

One seller is an Investor and he asked me who my funder was. I told him, but he is NOT answering my text messages. I made an offer by text message, which is not valid, but I figured it shows my interest. We also had a conversation about Contractor's and I told him that I was not previously able to verify some Contractor's license status. I already had previously looked others up, but I am thinking that perhaps he thought that I did not know how to do that.

HOW CAN I GET THIS SELLER TO ALLOW ME TO INSPECT THIS PROPERTY?  PLEASE HELP. I already have gotten a funding approval for this property, and now I am sitting here in LIMBO.

Another seller I have contacted owns a house that will probably need to be torn down. He wants $130K for it. I went into the house and took all kinds of pictures and tried to use the Spreadsheet that comes as an extra when you buy Joshua Dorkin's book called Estimating Rehabs. Very difficult to use when you're a newbie. I think the bet way to learn is going to be by watching the Contractor's carefully.

I have made 2 appointments with 3 different Contractor's and I sincerely thought that I would be able to get the right to inspect, but I didn't and I am hoping that I DO NOT lose these Contractor's interest in my proposals to get estimates for Rehabs for me.

My partner said that there is a New Posting on Biggerpockets that talks about "How to get a Yes from Seller's. I cannot find it. Anyone know where it is?

Thanks guys!

" In this case absolutely not."  Unless you have the comparables and the area in front of you, as well as all the details of the transaction, why are making that statement, Mark?

The comps, I have already are showing a lower ARV. When I finish them, I am pretty certain by my info already, that the ARV will be inflated.

Does anyone else offer at full price with an Inspection Contingency just to lock up the property and after the Inspection's and Estimates for repairs barter with the Seller. 

I know that the more EMD you put down, the more serious people take you, but the 10K request is out-of-the ordinary. Incidentally; he called me about a half hour ago. I told him I would put up 2%. He said he would work with me, however now he has a buyer going to look at it.

In this game you need to get the property under contract fast, fast, fast, or elso "Goodbye." I had this seller saying that we were going to sign off on the contract tonight, but when he countered my EMD of $500.00 with $10,000.00, I hesitated for an hour and a half, and now I am behind someone else.

Would you offer full price, contingent on inspection? I know very well already that this seller's ARV is out-of-line with the area. I know that I will never want to buy at his price. I just was thinking of using this to tie up the property, and I might do this again and again. The one problem that comes to mind is that I could be tying up my money with every property I make an offer on. It's a pain, but the price we have to pay to play.

I am working with someone who will buy with all cash. I would like to just find props that I can assign them to my recent partner's.

There offers include a lot of real estate commissions to sell. I do realize that selling by a broker has some advantages, I am wondering if the offers we can make can be competitive with the Real Estate Broker commissions always built in?

What is everyone else's thoughts on this?