All Forum Posts by: Ryan O.

My ARV is based on a half dozen or so comps 2 of which are the same model on the same street or a couple of streets over that sold for over 160K. I think I maybe being too conservative with my ARV, but being my first deal I want to give myself some cushion.

I just made my first offer on a 3/2 VA owned REO. I offered 62.5, the property needs about 32K in reno, I calculated my purchase, holding, and selling costs to be about 20K with a 150K selling price. I left myself some room to negotiate, so If I get it for my max offer price I should profit about 30K before paying my private money lender back.

Andy, that makes perfect sense to me. My investor is not experienced in real estate investing (not to say I'm a seasoned pro either), and there wont be any conditions in the POF letter. The only conditions on the contract I could think to have would be a due diligence inspection condition, and a condition of free and clear title.

Those two conditions are not likely to weaken my offer any right?

Bill-
Not trying to hijack you thread, but I have the same question as you, although not within an LLC.

I have an investor/partner that will provide funds and we will split profits 50/50, how do I structure this so I'm not stuck with all the tax responsibility?

To me a loan implies principle will be paid back with interest, how would the loan be structured if the interest portion (profit) is unknown at the time of the loan.

Should I have my investor provide me with a bank/brokerage statement (account numbers blacked out) and a letter stating the he is going to put up the cash for the transaction. and submit those two documents with my offer. BTW this is for a fix/flip purchase so I plan on closing and rehabbing the property. this is not a wholesale flip.

Dennis thanks for the reply, but my investor is a private citizen. Is any bank really going to consider a letter that says "John Doe is putting up $xxx to fund the purchase of this property" without actual proof John Doe has any money, or am I over complicating this.

-Ryan

I am very close to starting to submit offers on REOs that I intend on rehabbing. I have an investor willing to put up cash for for the purchase and rehab of said properties.

My question is how do I go about submitting POF with my offers. Is it as simple as getting copies of my investors bank/brokerage statements with a signed letter of intent to lend. If so does anybody have an example letter/form that they use.

My name is Ryan and I am a newbie investor from the western suburbs of Chicago. I have been doing a ton of research on this site and others, and I'm itching to get my first deal done.

I plan on concentrating on the fix and flip strategy. Although I am not, nor have I ever been a contractor I have done some rehabbing in the past and I have a good handle on the costs involved in this strategy.

I plan on keeping my full time job as a manufacturing engineer until I feel comfortable that I can make a living real estate investing. I cant stand the daily 8-5 working in an office, so being successful in this game can't come soon enough (even if my 8-5 turns into a 6-6).

I have learned so much already from this site and I look forward to my continued education, and maybe some meaningful contribution now and again.

-Ryan