All Forum Posts by: Walter Key

Attend local Real Estate meetings, network and ask for referrals.

Garrett, I'm assuming that you're military given the 3 year time frame and the VA loan. If so, thanks! As a fellow military member, I know and appreciate your service.

For a quick snapshot of rental potential, you can plug the address into rentometer.cm and get an idea for the market rents around your property. For a more accurate idea, call around to a couple property managers in that area and ask them for numbers.

Either way, if you can't rent it out the day after you buy it for positive cash flow, you may need to consider your deal. DO NOT count on the hope of decent appreciation forcing the market rents up between now and 3 years from now. That's a recipe for disaster. Best of luck to you.

In my opinion, this is NOT a good partnership for you to get into.

First, good friends very rarely make for good business partners and a bad partnership can easily ruin a good friendship. Second, he fronts all the money, his wife gets a commission when you buy, he reserves the right to sale the property, you split any out of pocket costs (non-contractor cost) and you essentially split the cash flow. There are a lot of moving parts here to complicate the arrangement.

If you were going into the flipping business and he wanted to be an equity partner, then maybe a 50/50 split of profits (after sale and expenses) makes sense.

For a long term rental, why don't you just ask him to loan you a set amount of money at a set interest rate for a fixed term, then buy the rental with conventional financing and own the deal yourself? You pay him a good return for his money (which you use as the down payment); you pocket the cash flow and own the property out right, both sides win.

@Sam Harper If your primary business objective is going to be flipping, I'd suggest an LLC that is taxed as an S-Corp. DISCLAIMER: I'm NOT a CPA, I'm NOT a Real Estate Attorney and I didn't even stay at a Holiday Inn Express last night!

This advice is based on the numerous hours of research that I've done on the subject to include BP forum conversations, offsite CPA and attorney blogs, etc etc. 

The benefit of having your LLC taxed as an S-Corp is that you can minimize your overall tax burden buy paying yourself a fair salary from your profits. Do some research for yourself on LLCs taxed as S-Corp and see if it makes sense to YOU. Then, consult with a professional (CPA or Attorney) on the matter.

Best of luck to you!

YES!! Hope it all works out for you. I'm currently waiting on HUD to review the bids from a property I put in an offer on as well. I offered a couple thousand OVER ask price because I know there were at least a couple other investor eyeing the same deal. Fingers crossed! :D

I second Tom's comment on your strategy to specifically target deferred maintenance. Great thinking.

Welcome aboard CV!

Congratulations! Can't wait to hear how it all turns out!

@Tammy Taglieri, Roberto Gerjoi is the lender with Angel Oak that I'm working with at the moment. PM me if you'd like his details.

A $12,000 mark up takes a big chunk of value out of the deal for a flipper.