Washington DC, Washington D.C. · Member since 2011 · 25 posts · 25 votes
I wholesale deals in the Washington DC, Maryland, Virginia, Market, I enjoy doing deals and helping others get started. Just wondering if anyone is running into roadblocks starting thier wholesaling business. Lets start a discussion
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Even with an S-corp, this SET avoidance may or may not work, and may or may not matter.
If you make, say, $10K a year from your business, and a reasonable salary for the job you're doing would be $20K a year, then you won't get away with paying yourself $1 in salary and distributing the other $9,999 as dividends. The salary is subject to SET, but dividends are not.
OTOH, if you make $40K a year from your business, and a reasonable salary is $20K, you could distribute $20K as dividends and other $20K as salary and pay SET only on the $20K salary.
Yet another factor is there is a limit on the amount taxed for social security (the bigger portion of SET) of $110,100 in 2012. If you have a good day job, and make that much or more, you won't be paying the social security portion of SET on your RE income in any case.
My response in your other thread, Cara Smith was more general. New investors often get wrapped up in setting up LLCs, thinking up company names, building a "power team", designing business cards and other minutiae. Doing all that stuff makes you feel like you're accomplishing something. But it really doesn't mean squat. What matters is looking at properties and making offers. Get out there and buy something, or at least work toward making deals.
Jonathan E., if you're paying tax on your gross earnings, regardless of your entity structure, you need a new CPA.
Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
13y
Hello. My name is Rashad. I am desperately trying to get back into the real estate investing profession. I lost everything in 08 and I have a full time job now riding around all day inspecting homes for a hedge fund. I am trying to utilize my time wisely and figure out what I can do to inch my way back to what I love. I have absolutely no money since i live from paycheck to paycheck. .Im thinking I can start off looking for good deals and things should fall into place from there. My question is, what do you all think is the best method for finding out property info on an abandoned house? Is there software out there that I can buy? Or would I have to go to the courthouse to look that info up? Your opinions are welcomed as well as far as if you think I am starting off correctly. Thanks!
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
13y
@Rashad Shaheed - suggest you start a new thread to post your question(s). Your post is sort of like getting on a moving bus without knowing its destination. In order to get more benefits from other BP members, post your query in such a way that others see your point clearly and your objective.
I'm happy to respond to the abandoned house query when re-posted.
Real Estate Investor · Piscataway, NJ · Member since 2012 · 167 posts · 19 votes
13y
What a awesome thread this is! Thank you Account Closed for starting it. I see genuineness and honesty shining through in all your posts on this thread. I applaud you. Thanks again.
Houston, TX · Member since 2013 · 1 post · 0 votes
13y
After reading about marketing strategies I have some questions. I see you recommend yellow letters, if you were going to start a campaign targeting only absentee owners on homes purchased prior to 2000, how large of a list would you star with? Assume you are one person answering phones, and money is not a limiting factor.
What would be the response rate be?
You mentioned 20-25 leads results in a deal, how many letters do you need to produce 3-4 deals a month?
And how many times would you send out letters to that list and what frequency?
What kind of general population do you need to comb to find the list you need to start with?
Wholesaler And Coach · Springfield, VA · Member since 2011 · 169 posts · 75 votes
13y
@Jeremiah B. - finding a buyer for a true deal is like finding sand at the beach. I get calls from wholesalers trying to sell other wholesalers deals. Always a waste of time as if it was a true deal the original wholesaler would have found a buyer and wouldn't need to peddle it to other wholesalers.
@Douglas Rath - why get title work before you have buyer? You can wait. As a wholesaler you need to figure out when you sign it up whether or not it is a deal.
Wholesaler · Newport News, VA · Member since 2012 · 32 posts · 5 votes
12y
@Account Closed I have a quick question...I'm out driving for dollars and I find a vacant property. Upon doing my research I find out the bank owns this house. The property is boarded up and needs some work, how would I go about making an offer on this?
Once the bank ties it up there isn't much you can do but wait for the bank to list in the MLS. You could try calling the bank and trying to find out who the asset manager is but I've found this to be more work than it's ever been worth.
You have to find them before they go back to the banks control.
Investor · Windsor, CA · Member since 2013 · 22 posts · 6 votes
12y
@Account Closed
My brother works a job where he's a lot of free time during the day. He wants to start partnering with me on some wholesaling. How can we leverage his time and my capital? Where would be a good starting point for he and I? He can drive he can call he can network. We just need a direction for him to start.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
@Dick Rosen - considering the number of questions you've answered compared to the MIA OP who was offering to answer these questions - you should get some kind of award :)
Investor · Norfolk, VA · Member since 2014 · 164 posts · 51 votes
12y
Hey Bruce,
Thanks for this post and I'm Glad I came across it because I just made a post about a wholesaling REO properties in Maryland.
I currently target all of P.G. County, some D.C. and Charles County. My marketing needs to be ramped up ridiculously but my budget has really started dwindling away because I took the leap fulltime.
However, can you tell me how exactly the process should work when trying to wholesale a reo with a LLC in Maryland? I was told I have to come to closing with a whole bunch of different paper work. I planned on putting offers in on the properties with property address + LLC. Then once the offer is acccepted go to Bmore and establish the LLC and pay the rush fee so I walk out with what I need. Will this work this way? Is the articles of organization all I need to come to closing with to sell the LLC? Or do I need more paper work? Also have you used quite claim deeds recently? Do they still work? because that seems Like a easier process to me.