All Forum Posts by: Robert Campbell

Hello All:

I am looking at this property at auction and I like many things about it and can work with it, but this is my one red flag - this tank set back about 25 feet from the house.  What is it, oil?  The walls are brick and it tapers out to maybe 8 feet wide, and its 8 or 10 feet deep but who knows because of the water.

There are 3 or 4 rusty pipes going in and out, mostly towards the house.  House was built in 1930.  Yes those are garter snakes.  This is in Illinois.  Whatever this tank is, if it costs me somewhere between 0.00 and 2000.00 to deal with on this project, it should be fine.  Much more than that, I may have to pass.  This is an Auction, so I took these pictures walking the outside of the property - can anyone offer some ideas on what this is and what Im looking at cost wise?

Thanks,

Rob

Thank you @Peter M., what great / clear answers.  I have a follow up question - note I own these (3) properties outright - 2 have tenants in them, 1 we will start rehabbing tomorrow:

Regarding 2): So I will create these (3) series first, and the three properties I have now will General Warranty Deed over to these Series? I believe that is what you are saying but wanted to confirm. Also, would you suggest using the suffix "-Series A,B,C" or was that arbitrary? Should I consider "Xesturgy LLC - 215 Woodcrest" for example? Thats the LLC name / space / dash / street # and name...

All:

I have two active rental properties in my area, both are in my own name. Rehab starts on #3 this coming week. I recently formed a "Series LLC".

1) What is the process for transferring my properties to the LLC, Quit Claim Deed?

2) Is anyone familiar with the Series LLC and how does that affect 1)?

3) Do I need an EIN?  Research on irs.gov so far does not make it clear.

4) Do I just go to the bank and tell them I want to create an account for the LLC? Referring to 3), do I need the EIN to open the bank account?

Sorry for such newbie questions, I have just done my flips and these couple of rentals under my name so far and need to make the transition.

Thanks

Fully move in ready over mostly move in ready adds a lot of value...

Jeremy - I do not have the exact answer, other than get multiple quotes on remediation.  I have one waiting for closing day that has some basement mold, I will tag along in this post and offer any info I find out, and learn as well.

Its incredible!!!

All - I just wanted to say thank you for the input.  This has changed my perspective significantly...

If you flip because you love the excitement of getting started on a new project only, go for it.  If your doing it to make money, I would advise against it.

All:

I have been combing through Zillow and Auction.com for several months for my area (Southern Illinois / Belleville) and I am having a hard time finding properties that have good Value in them.  By Value, I mean that Projected Sales Price - Cost of rehab - purchase price leaves a reasonable amount of profit to make it worth it.

On Auction.com, I participate in Auctions every week where I have physically gone to properties, tracked down previous owners, done all kinds of analysis to get an understanding what the rehab cost may look like.  What I find is that the banks just want too much money for houses that need too much rehab.

Is there some way other investors are getting access to properties that aren't on the MLS, or these common sites I mentioned? Keep in mind Im new at this, about 2 years, but I have made money with two flips and two rentals so far...

It does seem to me like in the fall of last year, there were more properties out there with Value in them - maybe its a time of year issue.  Final Note, my area is about 20 minutes from downtown St Louis across the river here in Illinois, investors from STL are picking off properties over here adding further scarcity.

Just hoping to spark a discussion that might help me and others - where do you find your good buys?

Thanks!

Rob

I have wondered about this so following along... Good question Randy