All Forum Posts by: Jessica Martin

Yeah, you're right. I just probably chose the wrong mentor program....

I agree with you already. I regretted the deal the very next day. I can only hope this person comes and blows me away with the information, but that may very well not be the reality... I just had no idea there were so many out there willing to teach... and local.. I imagined current/local investors would look at us as competition and be unwilling to share information, but I see its actually quit different because the mutual benefit that's been created.

@Guy Gimenez @Jeff DeCarlo 

Thank you both for your reply. 

We have actually paid to have a mentor, but we got it through a "Guru" company and we've been told it will be around Feb before this person comes down to work with us. We didnt want to wait to get started in this so we are seeing what we can figure out in the mean time on our own. 

My husband is a go get'er type and he's diving into this stuff and doing great at networking but I'm more the type person that I like to know what Im doing before I do something, so it's a little overwhelming to me the amount of information coming in all at once. More than anything I'm just scared to accidentally do something illegal unknowingly. 

We are finding many people willing to work with us, but one guy asked for 80% of the profit of all deals for 3 years... that seems steep. I assume newbies do require a certain amount of time and hand holding, but I know we are going to learn this and do this faster than the people he is probably used to dealing with.  And maybe every newbie thinks that, but I have confidence that we will get this down faster. All we need is someone to show it to us once and we will have it down. So Im not prepared to sign away that kind of profit for that long of a time span. 

Also, with our mentor coming in February, I dont want to sign anything that conflicts with the deals this person will want us to do. But this mentor will only be here 3 days and probably only phone access after... So we probably jumped the gun on that deal instead of getting one locally(And Im sure we could have for what we paid this guy), but at the time, we didnt know mentoring was as popular as it is.

Thanks for giving it to me straight Guy. That the info I want. Easy to hear or not, but I've def already figured out this does require a certain amount of experienced guidance. I just want it faster than how is coming because we are ready to get things done now.

So Ive read finding a title company to do assignment contracts can be difficult and I just got my first taste of that... The first title company I called had no clue what I was talking about. The second at least asked questions to find out what I was wanting, but came up with questions I didnt have answers to since I am new at this and almost made me feel uncomfortable because she was acting like what I was wanting to do may be illegal, but from everything I've been explained, it is legal... why are title companies so puzzed by this? 

Someone told us that of all people we are dealing with, title companies are the one you can be completely honestin telling them we are new and having no idea how the paperwork works.

So I was honest with the lady and told her I was new to investing. She was asking questions like, "Will you be making money off of this deal", "How much", "So the poperty will never really be in your name"(Explained I do not want a double close),"Are you are real estate agent""When I report this to the IRS, how do I explain to them the difference in the price between what your buyer pays vs what your seller is getting". That last question really stumped me. I don't know how that works... All I know is Ive been told this is legal and I do not need a license because Im not selling real estate, Im selling a contract and my rights to purchase... Can someone help me on this... I want to MAKE SURE this is legal. I mean, it's got to be if so many people do it for a living. It just surprises me that title companies are so confused by this...

@Elizabeth Colegrove 

Thank you for the information 

@Elizabeth Colegrove 

I was reading though this post for my own curiosity on how rentals work as well, but Im not sure I understand your response. I'm new to REI. Ive been studying more on wholesaling and fix-n-flips. Can you explain more in detail about your comment.

What do you mean by "Cash on cash" and leverage?

Thank you!

@Jeff DeCarlo  

I will def do that. I really appreciate it.

@Greg H. 

Thank you for the Groupon info! I did get them to refund the $363 I paid for their middle package and will now get their best package for $199. Thanks so much! 

Awesome Information Jon, Thank you! 

So Im really working to find out about a few things with wholesaling and fix-n-flips.

My biggest hurdle right now is being afraid of paperwork without someone there to tell me if Im doing it right or wrong. Its such a scary concept to me since this is legal paperwork... what if I dont include something that should be included to protect myself, exc... Any tips/advice on paperwork process? 

Can someone maybe give me a break down of the PAPERWORK process of what happens on a wholesale deal from the time you put a house under contract to the point that you collect your wholesale profit? 

Now this may be a complete newbie question, but I want to make sure that I understand this correctly. On lenders interest fees for a fix and flip, say the interest rate is 15% and the loan amount is 100k(just to make it easy)... Lets say I borrow the money and have it out for 6 months... I would only pay $7500 in interest correct? Because 15% is annually and I only had the loan out 6 months... 

And Balloon only really means that I guarantee that if I still have the loan out at the end of 12 months, I will get the lender his money back, either by finding a different route for financing  or whatever I have to do to get his money back to him?

Also, Ive heard a few people say they take out a few extra thousand from their lenders to cover carrying cost throughout the rehab process. How is this done? Is it really "allowed" to be done?

Thank you