All Forum Posts by: Brian Tome

@Frank S.

Welcome to BP Frank!  Good luck in the windy city.

@Chris Daliani

One of the Podcasts I recently listened to said "go to Home Depot or Lowe's at 7 am and see who is standing at the contractor's desk."  I haven't used this tip yet because I have a partner who has solid relationships with lots of great contractors in our area, but it makes perfect sense.

Good luck!

@Jose Torres

In this business, a couple of nice button down shirts and some khakis will be just as useful as a suit.  Save that money for your first deal. 

@Peter Forrest

Technically you need a lawyer who practices in the jurisdiction where you set up the LLC and or Trust. For a number of reasons, you should consider incorporating an LLC in Delaware. It is far and away the most favorable jurisdiction for incorporating any number of business entities. I don't know any Delaware attorneys in the DC area, but all of what you will need can be done via telephone/mail/email/fax.

For this kind of work I would recommend Scott Swenson.  His integrity and expertise are second to none.  He is a highly respected member of both the Delaware and Maryland bars and recognized as one of the best lawyers in America within his field.  His contact information and credentials can be found at:

http://www.connollygallagher.com/attorneys/scott-swenson/

Also, I would recommend removing the term "exploit" from your vocabulary.  It has too many negative connotations to be useful in negotiating.  Instead, use capitalize, develop, cultivate, etc. and always focus on the potential benefit for the other person.  People will be happy to see you make money when they know you cared about their needs first.  That does not mean you have to work for charity, it just means transparency, honesty, integrity, and kindness will get you far more deals than cunning strategy.

Denny,

I would encourage you to develop a referral relationship with this guy because he is a professional in the industry and may come across some deals that could help you.  However, I would stress that you only want to do what is completely above board.  If the bank that trusted him with the keys does not know or intend for him to give you the opportunity to inspect ahead of the auction, don't do it.  There are plenty of investors who will.  There are also plenty who will crawl through windows, pick locks, etc. to get early access to a presale/auction foreclosure.  If I were you, I would not be one of them.  It is a shady practice and you will likely get a reputation if you do.

Instead, focus on finding great deals that are not in the process yet.  If you are the only investor looking at a home someone inherited and no longer wants, your negotiating strategy just got a whole lot simpler.  It may take you a while to find the first one, but be conservative in your numbers and once you make a little money, put it into marketing for your next three.  The more you do, the more people will know and refer you, so start with a good one, then repeat. 

You seem conscientious so I have little doubt that you will be successful in no time at all.

Best regards! 

Total agree with Linval.  Very often we want to work hard to make a deal work.  If you have to work that hard, it probably is not a deal.  Let that one go to the next guy and spend your time and money looking for lower hanging fruit.

@Heath Thomas Jr

You will want to talk to a realtor or appraiser for the ARV on such a property. I would say a 6.5" finished ceiling is almost useless and not worth investing any money in. In addition, I think you would be prohibited from advertising the space as a bedroom unless there is an easily accessible fire exit from the bedroom itself (ie. large window with dry well that a person could crawl out or an exterior door). If you end up with a bedroom you cannot advertise, only people looking for a smaller house will even see the listing.

@Annette A.

Maybe after a timber harvest you could contact a small unit solar investor.  If they can establish a long term power purchase agreement from a user who requires offset in the nearby city, they might be willing to establish a long term lease with you.

Same possibility for a cell tower if coverage is needed in your area.

Definitely not "talking into nothingness" Ben.  I have benefited greatly from your insight.  I just have not been a regular contributor to the forums.  I will try to post more often.  Please keep the advice coming.