All Forum Posts by: Bob Floss II

@Bill Dengler Are you trying to say banks spontaneously change the rules when it benefits them?? That's crazy talk!

As a practical matter, I deal a lot with Auction.com properties and if you have a property you really want, be prepared to bid on it a dozen different times. They are required to bid it up to the sellers reserve and it can take months or maybe a half dozen auctions before the seller lowers the reserve. It's a game of persistence and waiting for them to lower their bottom line.

@Jeffrey Rowland Welcome Jeffrey, I hope you a good investment.

@James Bitakis Do you plan on using cash, hard money loan, or private money to purchase the property? 

If you PM me the address I can do a quick estimate of how much you'll need to bring to closing on your purchase and give you a rough idea of what you'll get at closing when you sell. It only takes me a few minutes to put together the anticipated closing costs. When I run numbers I like to know the actual cash on hand to close and profits after everyone has been paid.

@Stephen Neto The day before Thanksgiving I had a contractor give me a sob story he was out of money and his wife was texting me they didn't have money to buy food for Thanksgiving. I felt bad and paid the guy for doing all the trim work in the house and told him I expected it all done on Monday. Do you think he set foot back in the house to do the trim, NOPE. He finally came back on Wednesday, did about half the trim, then let me know he underbid the job and left. He didn't seem to mind the money when he was getting paid. 

Lesson learned: NEVER pay a contractor up front for ANY work.

@Nick Schumacher What kind of returns are you expecting? Maybe give a price range for agents and sellers that find this post.

@Chuck Dangar Write a Note to loan the money to your new LLC with a balloon date.

@Dan Miklosz If you are looking for a turn key rental, you'll have to go pretty far to find a rental property in that price range. You can do the City but you're looking at a condo. Any buildings at that price point are going to need significant work.

@Jay Hinrichs The scam with huge insurance premium was new to me until about a week ago. There are a few people running around every message board they can find in Illinois offering rehab loans. I talked to them and they offer to get the borrower a 5% purchase and rehab loan, the borrower just has to agree to pay a $10,000 premium at closing for the insurance policy to cover them for loss. 

@Jerry W. Wyoming is an underrated state for LLC's, investors don't realize the protections it offers. Everyone wants to have one in Delaware, which is also a very good state, but I feel like it's more of a status symbol.

I typically produce this for the title company. I can't think of the buyers lender ever requesting an operating agreement.