All Forum Posts by: Carlos O.

Based on somewhat I've heard, it costs hundreds if not a couple of thousands to be an REA in CA. Also, can you elaborate on why I would need a license in order to get a shared commission? I was thinking more in terms of selling the lead rather than getting a shared commission, but that you've brought up a good point, it might be better to go for the shared commission once I establish a good relationship with a REA in my area.

Hello all,

I am interested in wholesaling and looking for more information about it. You see, wholesaling to me means more than just than just getting a property under contract and selling it of for a profit. I want to do more than that. I have two main reasons. 1.  I expect to run into a lot of properties that just won't meet the wholesaling criteria. I'm thinking there has to be things I can do to help the client and still make money by helping them.  2. One of my goals is to build a reputation as a problem solver, even if that doesn't involve selling a house.

I've heard of things like sub2 deals, which I am not very familiar with. I can direct the seller to a real estate agent and make some money off the lead. What else can I offer to a client that will provide value for them and profit for me? To put my question in a different way, what do you guys do when you run into clients that don't fit the wholesaling criteria?

I don't mean to hijack Rotonda's thread, but I have a question that falls in line with what she is asking for. Should an LLC be created for a wholesaling company? Put another way, can you as a wholesaler be sued by an individual? Has that ever happened?

@Mark Gruetzmacher 

I haven't come across any videos yet. To be honest, I haven't bought my first rental, and don't really have any business related expenses. Thus, I haven't spent much time in GNUCASH configuring accounts for rental expenses. I'm certainly no accounting expert, so I will learn as I go along and ask a bookkeeper when I run into any questions or issues.

If you don't want to build accounts from scratch, check out this page. http://www.gnucash.org/docs/v2.6/C/gnucash-help/ac.... It talks about how to add accounts. You may want to add the following:

Business Accounts

Fixed Assets

Home Mortgage Loan

Homeowner Expense

This will be a good starting point for the book. I would have 1 book per property, otherwise it may get tricky trying to figure out which expenses are tied to a particular property. 

I still highly recommend that you first learn how the program works, then talk to a bookkeeper to help you set the books the right way and periodically check your work to make sure it's right. That's what I'm going to do when I get my first property.

So, would the approval letter hold more weight? What I am really trying to get at is, what if you have an approval letter with a stated interest rate of 4.5%. Assuming stable interest rates and loan is opened within 30 days or so of the letter, would this rate be very close to the loan rate. What I would like to avoid is having a lender say 4.5% and then bouncing the interest rate up .75% or 1% (or more) during the loan process. I'm asking because I haven't taken out a loan or dealt with lenders much. So I don't have a good idea of what is normal and what isn't in regards to the interest rate I would get with lenders.

@Joshua Dorkin Joshua is such a hipster. I bet they have Macs at home. :P

I'm going to start wholesaling sometime within the next month or two. I don't see any issues with taking photos as long as there aren't any people on the porch, that would just be creepy. At the same time, I don't see a huge need for it. The important thing is marking the location and getting the address. I suggest you use a tablet and a GPS tag app. 

I think it depends on what exactly you are going to be doing. As a newbie investor myself, I want to do an LLC a few months ago, but learned that costs $$$. I'm going with an umbrella policy instead until I get more homes. I'm also looking into wholesaling, I may do an LLC for that, I'll have to see what a lawyer says.

Hi everyone,

I just have a quick question for those that got pre-qualified before getting a loan. The pre-qual letters shows the amounts approved for and the interest rate. How likely is that you will get the noted interest rate or very close to it when actually applying for the loan?

Carlos O.

It's great to get those Home Depot or Lowes CC interest free for 12 months; it's "free" money. Just make sure you have a sound exit strategy when loading up on CC debt, or any debt as a matter of fact. That way you can unload the property and pay down the bills if the crap hits the fan.