All Forum Posts by: Brian V.

@Rolanda Eldridge If I'm working with a partner or a lender that is going to provide funds, how do I show proof of funds? Right now my personal debt to income ratio and cash in the bank won't allow me to get another loan unless I can get a loan based on the merits of the property. Is there a way to make an offer contingent upon the approval of the lender or partner within a set number of days? 

I would like to make offers and then scramble to try to find a partner or lender to back the deal...Then if an offer is accepted, I can go back and find the funding.  I guess it doesn't work this way.

I watched the BP webinar yesterday and they said I should create a deal funnel.

-Generate Leads

-Quick Screen

-Analyze Leads

-Make Offers.

Lets say I get 100 leads, screen them down to 50, and analyze 50 to determine I want to make 10 offers.  What is the best way to make offers. Should I submit a "letter of intent" or an actual contract? 

Preparing a bunch of contracts seems inefficient, where as submitting a letter of intent with proposed offer seems like it could be more efficient.

How are you guys submitting offers. Additionally, lets say I was making offers with a Realtor on the MLS...won't that drive my agent crazy having to create many low offers that probably will never get accepted just for me to get one deal. How can we make efficient use of our Realtor's time and our time when submitting offers.

Back around 1999 or 2000, I purchased a comprehensive real estate course with Robert Shemin. It was like $50 at the time for many tapes (before CDs and DVDs were mainstream), workbooks, forms, and contracts. I found it captivating and interesting and he really breaks things down in an entertaining doable way. I used his techniques to locate a motivated seller and buy my first home with $30,000 in equity via traditional FHA financing. That's the only deal I ever did.

It would seem that Shemin has really moved up in the world and he's offering his courses and coaching at a much higher price point. Honestly I think you can learn everything he teaches from the people here on bigger pockets. Additionally if you get pro (which I don't have yet) they have many calculators you can use to analyze potential deals.

I wouldn't pay for his material again. There is a lot of free information available if you search for it. You might even make some contacts here on BP that can give you more specific details, links, direction, etc.

@Brandon Diaz I didn't hear anything from bigger pockets so I bought the course. Its coming in the mail. There is no money back guarantee, but when I emailed questions to the author, he responded in 15 minutes and offered to answer any support questions I would have. Its a gamble, and the quality of these types of things vary, so we'll see.

It is my understanding that if I buy a property and rent it out, that I do not owe self employment taxes. Now lets say that in 1 year, I sell the house and buy another one (or two) and rent it out for a year. The income coming from the rentals are passive, and the sale of the house for a gain is inevitable.

At what point do the activities of buying, renting, and eventually selling after a year or two trigger self employment tax. I have read that if I am a flipper that my income is subject to self employment tax. But if I'm buying and holding, does that trigger the self employment tax? At what point do my real estate activities become subject to this type of tax--about 15% for  social security and medicare.

Hi, I have been scouring the web looking for information on Sub2, Subject to, and Subject 2. My interest was piqued here on Bigger Pockets podcast #2. This lady bought over 150 houses sub2 over the course of a few years.

I have not been able to find any information, contracts, or methodology of how to set these up. There are a few mentions of it on Bigger pocket forums, but I'm still not getting the whole picture.

I found a comprehensive course by William Tingle for $297, but I'm leary about paying much for courses anymore since I've fallen into the trap of paying thousands of dollars on courses, seminars, boot camps, coaching, and mentoring.

Does anyone know if this course contains quality information and resources on this subject? I couldn't find any information on the scam pages and this product does not come with a money back guarantee.

Hi everyone. I'm new to bigger pockets. I live in Victorville, California. I've decided 2017 is my year to actually do something.

I have been studying real estate on and off for 20 years. I have bought several books and courses, attended expensive seminars and boot camps run by "gurus." and even paid thousands on Mentoring. I'm ashamed that in the thousands I've spent, and massive action I've taken that I have been mostly unsuccessful. 

One time I found a motivated seller and bought the first house I lived in and attained $30K worth of equity on the purchase. That is it.  Other times I had deals under contract for rental properties, but those deals fell through. I'm was very frustrated, so I took a few years off.

I keep coming back to real estate. I keep wanting to make something happen, but I don't know where to start. I've listened to many podcasts on the site, read the forums, watched webinars, and read some books. Additionally I read a lot of motivational stuff like Toni Robins.

I used to work in IT, but got downsized, so for the last 14 years I've been "enjoying" a very modest retirement. My credit is good, and I own my house. I have just $25,000 in the bank as emergency money, and I make just $2400 a month. 

How do I get started. I have unlimited amounts of time to leverage because I don't work, but I am spending many hours a day reading, watching, and listening, and hoping it will all open up to me.

I don't even know what techniques I want to focus on. Everything seems so risky, and I don't want something like vacancies or repairs for example to bankrupt me. Other techniques like Sub2 seem like a fast way to get into trouble if you can't get someone in there to make the payment...either that or something bad happens and you get sued.

Does anyone have any ideas in my situation how I can get started, what method I should learn and use? I have the simple goal of acquiring just one property in 2017.

If someone bought a property today and rented it out, they would declare the income on their taxes. The income would be passive.  There for based on my understanding is someone who collects Social Security Disability or Retirement wouldn't risk losing their benefits because they aren't "working." If 2 years later, they sell that house and make $20,000 profit, they still wouldn't risk losing their benefits. 

At what point does your real estate activity become an active business in the eyes of uncle sam where you would owe small business tax of about 15% for social security and medicare as well as income tax. In other words, when does the buying and selling of property become a small business?

In this simplified example, If I bought 10 houses this year, rented them out, and then sold them a year or two later, is that just passive, non small business activity, just personal investment, or is that considered small business activity where I would owe the 15% tax in addition to my income tax?

I hope I've made myself clear. I basically want to know how the government looks at real estate investing for income.