All Forum Posts by: Richard Wormwood

I am assuming you plan to buy and hold since renting is the best long term income game. Especially if you are talking multifamily units.

In the next twelve months, we have the goal of 10 flips/wholesales netting an average $20k profit.

That should double every twelve months and once at the point of seven-figure liquidity, we have our eyes on commercial and massive multifamily units.

With the growth rate of North Texas and the lovely business friendly state governance we have, it should continue for the foreseeable future.

I was upfront and honest.

I approach every property with the intent to flip if it doesn't wholesale.

So, the numbers were accurate and transparent. The buyer has just chosen not to do any work to the property and it has sat in a very hot market.

Although the OP didn't get the answer they wanted, I greatly appreciate the info.

Google voice and Grasshopper... Best combo

A fellow newbie here, so I say welcome!

There's a myriad of benefits you can gain from real estate and investing. If you enjoy the work and set your own schedule... you're never really working and thusly, never need to retire.

What are your goals for the next year? five? 15?

You say retire by 40, and do what?

I'm from Texas and don't know what he is talking about either.

Considering that some-one is trying to gouge $20k for a foundation, this is either a HUGE house or he's being taken for a ride.

I'm no pro and I'm definitely not in your area but negotiation is negotiation, world round.

Are you submitting offers in person or secondarily?
Are you dealing with agents or owners?

These can have a tremendous effect on whether your offer is accepted or not.

Also, from what I have gleaned from people DEEP within the business. It's a good rule of thumb to know that one in ten offers will be accepted and even that is HIGH.

Kilz, as good as it is will only cover odors for so long. I know this for a fact from an old house I lived it. It was treated with multiple coats of kilz and within 6 months the previous odors had returned.

If you wish to avoid double taxation then a C-Corp is out of the question.

If you have already filed as an LLC with the SOS then that is what you'll have to file as for the IRS.

But there is hope. 

As an LLC, you can still opt for the S-Corp Election which essentially turns your LLC into a "pass-through" entity. Meaning you pay ALL profits through to the shareholders and the LLC is not taxed at all. You can then funnel your profits into funds such as a Solo-401k and avoid even greater tax liability.

There are limits to what you can do with your earnings and you'll want to talk with a tax professional. I just know about this due to recently forming our Corporation and speaking with MANY a CPA.

You'll need to fill out and file an IRS Form 8832 as well as IRS Form 1120S to file as an S-Corp.

See this page for more details and contact a CPA:

IRS LLC Filing as a Corporation or Partnership

I recently wholesaled a property for a comfortable profit. There was plenty of room in the ARV versus buying price for the final purchaser to rehab and sell the property with a nice tidy profit.

For knowledge and experience reasons, I followed the property on Zillow and saw that within two weeks the property was listed on the MLS and thusly, Zillow.

But there was little to NO work to the property.

I thought, "Maybe he knows it will sell without work. I'll just watch and see."

After over a month I have seen over 2000 visitations to the Zillow listing with less than a dozen people saving the property.

I personally think it is due to the state or certain rooms, general condition of the house and the high asking price.

Would you voice your concerns and observations to the buyer, now seller? Or just leave it be?