All Forum Posts by: Brad Deffenbaugh

How long does a person have to choose a sponsoring broker/location after the license is attained? Or what is the expiration time on the license to get hired on at a brokerage location?

Is anyone currently attending any San Antonio, TX REI meet up groups? if not, I would like to organize a meet and greet for investors and like-minded professionals in the near future in SA. BiggerPockets is a wonderful way to connect online with people, but nothing replaces face-to-face conversations and discussion.

Anyone interested?

I have heard mixed opinions. Some of my colleagues say that direct mail works, you just have to budget for the marketing expense and be patient and consistent. Others say the same about door knocking and cold calling. In my experience, both are successful methods, but you absolutely have to have a long-term gratification for BOTH methods. Don't expect to find good properties overnight either way.

thanks Steve

Steve,

So is there any security measures with just setting up a DBA?

Steve,

So the quick response: go for it as a sole proprietorship: does that mean jsut filing with the state (Doing-Business-As)?

Well I am branching out from our family company that I have been working with. It is an S-Corp (Headquartered out of state for more hoops for people to go through who try to sue) and the Entity owns a LLC (for cash flow properties).

I think you are correct on your research on the LLC. I read an article not too long ago about creating an irrevocable trust to own each individual flip property (The LLC would own the trust).

The upside of irrevocable trust - 

creates mounds of more protection for each property, so people can only go after the equity on one house. The idea is that since lawyers only get paid if they win a case, they wont represent a case going after a property with little equity.

The down of irrevocable trust - 

I have heard it cost $2,000 - $3,000 to set up one irrevocable trust!!!

I think you are right, maybe just a simple LLC is the right way to go.

Does anyone have any recommendations for which type of company to set up for flipping houses and having rental properties in Texas? Maybe what are the advantages and disadvantages of both?

I am looking for the best ways to avoid taxes on flip profits as well.

Joe,

There are many ways to find properties in you local market or areas. I know everyone always tells you to go with cash to the courthouse steps on tax auction day, but that is by no means the only way to find good deals. Consider some of the following ideas.

-Going to REI clubs and networking with other investors and wholesalers.

-Realtor.com (If you know your market, you can identify older listings that are good listed deals)

-Foundation Companies

 Foundation companies know of individuals who cant pay to fix their foundation, the property owners cant  get it insured and they sometimes look to sell...great lead source

-Divorce attorneys

  They will be the first ones to know of properties that two individuals want to dispose of   before an agent is called to market it.

-Realtors: This is probably the most used. Network with agents and tell them the criteria of house you look for (3/1 1,200 sq ft...etc). Tell them you are a cash buyer with Proof of Funds (POF). Follow up with them once every week  and go ahead send them your POF letter at first to let them know your serious.

Brandon Turner talks about focusing in on "farm areas" in his book on Bigger Pockets. This is also commonly referred to as the "kill zone." The idea is by learning/knowing the market in certain area of a city (what house sell for, house fast...etc) you can quickly identify whether a property is a good deal or not. 

If I had a contract with the owner with a 10 day option period, and (after marketing the house to cash buyers) made a 2nd contract with the end buyer on day 2 of my option period (with same option period time) to close on the same day as I do with the owner...cant the end buyer back out on day 9 of his option period and leave me in a situation of loosing my earnest money?

With my understanding right now, this problem would always exist. Maybe there is a way to remedy this that I am unaware of?