All Forum Posts by: Zachary Lynn

Interested in doing a flip in the next few months.

On for example, a 400,000$ purchase here in suffolk county NY, there could be greater than $15,000 closing costs.

Is there a way to minimize these costs to minimize breakeven -- would paying cash eliminate a lot of the lender fees -- is it even worth it? Would buying from a town directly prevent the 3%-6% closing broker fees?

 I will do my best to keep the post updated every few months as progress is made. Your message was received well. I'm excited to execute, I know that it's just about go-time and am looking forward to this upcoming journey of making mistakes along the way and learning all different angles how to avoid and perfect the process. Imitate, then innovate...I really like it. Thanks Tim

Thank you Steve for taking the time to respond. All very good ideas that I will try to implement. This support is making me feel excited that I joined and am not going in completely guided from my research alone. 

 Thanks, that is an idea that took a minute to really register, but I like that advice.

Thanks for the reply! Good point. I used the wrong terminology (newbie! sorry). I mean people who are having serious trouble paying their mortgage or haven't in a few months but their house is still worth at least greater than the current payoff of the mortgage.

I am somewhat new to the wholesaling side of real estate.

After dozens of hours of research, this is how I plan to open up my business.

Step 

1) Create an online presence / storefront for a company who helps offer options to underwater mortgagees. 'come to us for a free analysis of your mortgage situation. This is just one of my planned marketing angles.

2) Get leads through all the ideas i've found on here such as absentee owners lists/ local govt filings / postit signs/ driveby/ etc (the etc is expansive)

3) Create a database of the potential clients we may propose buying their house to after they call or call them and detail every step.

4) Take down details of house after speaking with owner and explain how we work and eventually what we can offer and how we came to those numbers. Do comps, and estimate repairs, and make them a 'cash' offer.

5) Get a lawyer (probably step 1 lol) and get a contact written up which is assignable and gives me outs if need-be.

6) Unload contract to whoever offers best or bites first at reasonable profit. 

--Obviously this is a basic guideline I have in my head without all the details, but does this sound good? Am I missing steps? How much should a lawyer charge to write me up a general reusable contract for this purpose? 

I have an investor ally who said don't even get the thing contracted up, he'll lawyer up and sort out the details for me. I know it would generally be in my best interest to get it contracted up myself--but I was thinking to let him negotiate their price and give me just a commission on the first few ones so I can hear how it's done.

Should I open up an LLC or is acting as a sole-proprietor better?

I am somewhat new to the wholesaling side of real estate.

After dozens of hours of research, this is how I plan to open up my business.

Step 

1) Create an online presence / storefront for a company who helps offer options to underwater mortgagees. 'come to us for a free analysis of your mortgage situation. This is just one of my planned marketing angles.

2) Get leads through all the ideas i've found on here such as absentee owners lists/ local govt filings / postit signs/ driveby/ etc (the etc is expansive)

3) Create a database of the potential clients we may propose buying their house to after they call or call them and detail every step.

4) Take down details of house after speaking with owner and explain how we work and eventually what we can offer and how we came to those numbers. Do comps, and estimate repairs, and make them a 'cash' offer.

5) Get a lawyer (probably step 1 lol) and get a contact written up which is assignable and gives me outs if need-be.

6) Unload contract to whoever offers best or bites first at reasonable profit. 

--Obviously this is a basic guideline I have in my head without all the details, but does this sound good? Am I missing steps? How much should a lawyer charge to write me up a general reusable contract for this purpose? 

I have an investor ally who said don't even get the thing contracted up, he'll lawyer up and sort out the details for me. I know it would generally be in my best interest to get it contracted up myself--but I was thinking to let him negotiate their price and give me just a commission on the first few ones so I can hear how it's done.

Should I open up an LLC or is acting as a sole-proprietor better?