All Forum Posts by: Katy Yanda

HI

The previous poster has had success with "hands off" appoach. So have my husband and I. We live in CA, do our RE investing in MO. We have built up a team of reliable people to work with us from the the beginning to the end of the process. We go out 2-4 times a year to connect with them.

Every person came recommended to us through other people we worked with. The first person came recommended through a friend of a friend.

OUr front runner (bird dog) finds REO's and bids low on our behalf. We have a mortgage company we deal exclusivly with. We have 2 RE agents who handle the buy/sell process. We have learned who is a reliable contractor and who isn't (and trust me we ran into the bad ones).

We bought an REO last year for $33K. Put $40K rehab costs in. The listing price is $105K. We staged it and expect to sell it within 3 months for about $25K profit.

We have 3 other houses that are on lease option, coming due this year.

It's possible to do this but you must be prepared for things taking longer than you expect. I can't imagine doing a rehab in 3 or 4 weeks like on that TV show Flip This House. Just doesn't work that way.

Don't over extend yourself financially - there'salways something that throws a little monkey wrench into the deal.

Bird

Howdy

Yup I had that same question a while back - where do you get insurance on non-occupied rehabs?

Well, it's hard. It IS doable but be prepared to pay a high cost.

My husband and I own 3 houses in MO (we live in CA though) that are not occupied. The insurance on 2 of them was $1100 for 6 months on 1, 3 months on the other. Yeah, not a happy thought.

I'm certainly going to be involved in the insurance issue on the next set of houses (my sister-in-law and husband are overseeing this rehab business while I work a day job and harp on business and tax issues).

BTW if anyone in MO wants to chat about investing there I'd be interested. Although my time here is spotty due to wildy varying work hours.

Bird

Hi

In California, no matter what entity you create, there's always going to be the franchise fee.

A general partnership? Only if there is more than 1 partner. Whereas a single person can create a c-corp and pay him or herself a salary oiut of the corporate earnings. A single person can create an LLC which is disregarded by the IRS but offers some liability protection.

Again it's good to get the input of a CPA who is familiar with real estate investing and tax returns to determine what the best business entity is for a particular person and type of real estate.

I personally have run an S-Corp, a C-Corp and an LLC. Each entity was geared for a different kind of business.

Bird

Hi All

You know, all these guru's talk about getting the title, flipping, how to get or sell the property. I've been to expensive seminars, affordable seminars, read on line articles, books.

But no one seems to talk about practical things like how to get your rehab house insured if no one is living in it. Yup, any one out there doing multiple short term rehabs? Got hazard or fire insurance? I'd really like to know how not to pay through the nose to insure these properties for the short time (less than 6 months) I'll be owning them. I do have insurance on the properties I have and it's twice the normal HO insurance rate.

Counting the costs,

Bird