All Forum Posts by: Carlos Ramirez

Hi there,

I'm really sorry to hear about the challenges you're facing with your contractor. It sounds like a tough situation, and I'll do my best to help in a simple way.

Firstly, it's important to know that you're not alone in facing issues like this. Here are some steps you might consider:

1. Seek Legal Advice

Reach out to a lawyer who can guide you through the specific laws in your area. They can help you understand your rights and figure out the best course of action.

2. Documentation is Key

Gather all the communication you've had with the contractor, records of payments, and any information about the work done. This will be crucial if legal action is needed. Looks like you've done this already.

3. Negotiate and Clarify

Try talking to the contractor calmly. Ask for a clear breakdown of costs and details about the extra expenses. Explain your budget constraints and see if there's room for negotiation.

4. City Permits

Find out what needs to be done to address the permit issue. This is crucial for the project to move forward and for your property to remain safe and legal.

5. Protect Your Property

If there's a threat of a lien, you should act quickly. Consult with your lawyer on how to protect your property and navigate the situation.

Remember, it's okay to ask for help, and seeking legal advice will provide you with the best steps moving forward. Hopefully someone else can add to this too.

Wishing you the best in resolving this issue.

Kind regards,

Carlos

Hey BP community!

Hope everyone's doing well. I'm exploring real estate wholesaling and would love to connect with those who've automated their businesses on a budget.

Curious about:

1. Budget-Friendly Tools: Any recommendations for low-cost software or tools to automate aspects like lead gen and deal analysis?

2. Scaling on a Budget: Tips for scaling on a tight budget while keeping things efficient and reliable?

3. Networking on a Shoestring: How can someone effectively network online and offline in the real estate and wholesaling community?

4. Overcoming Low-Capital Challenges: If you started with minimal funds, how did you tackle challenges when moving towards automation? Any practical tips for someone in a similar situation?

I believe in learning from others, and any advice or shared experiences would be hugely appreciated. Drop a comment or connect directly—I'm eager to hear your thoughts!

Best,

Carlos Ramirez

• -Look for at least 20% ROI as a good minimum goal. This covers all your costs.
• -Factor in expenses like loan interest - this may increase your target ROI.
• -Higher risk flips need a higher target, around 30% or more.
• -Set goals based on your strategy. Flipping part-time may only need 15-20% ROI. -Full-time flipping should aim for 25%+.
• -Run the numbers for each deal to maximize profitable returns within your risk comfort level.

The key is understand all the costs, and aim for a 20% ROI minimum in most cases. Let me know if you need any help number crunching!

Hi there! Congratulations on your first investment property - that's exciting!  

As for taxes, I'd recommend connecting with a CPA or tax attorney who has experience with rental properties held in LLCs. They can ensure you maximize deductions and handle taxation correctly.

Propstream! Let me know I might be able to help you run numbers

This is something I had AI write up. Let's connect we're looking to close 20 deals by the end of the year.

Joint Venture Agreement

This agreement is made on [Date] between [Wholesaler 1] and [Wholesaler 2] to establish a joint venture for the purpose of identifying, marketing, and assigning wholesale real estate contracts.

Responsibilities:

• [Wholesaler 1] will locate and evaluate potential wholesale deals and bring them to [Wholesaler 2] for consideration.
• [Wholesaler 2] will evaluate deals brought by [Wholesaler 1] and provide marketing assistance to promote deals to cash buyers.
• Both parties will jointly facilitate showings, offers, and negotiations with the seller to assign the contract.

Profit Split:

• Net profits from assigned contracts will be split between [Wholesaler 1] and [Wholesaler 2] on a [50/50] basis after any marketing, transaction, and holding costs are deducted.
• [Wholesaler 1] will receive [40%] of the profits and [Wholesaler 2] will receive [60%] of the profits.

Exclusivity:

• This agreement is non-exclusive and both parties are free to enter into other wholesale deals independently.

Term:

• This JV agreement will be valid for a period of [1 year] starting from the date signed below. The agreement can be renewed upon mutual consent.

Governing Law:

• This agreement shall be governed by the laws of the state of [Your State].

Signed by:

[Wholesaler 1 Signature] _______________________

[Wholesaler 2 Signature] _______________________

A land trust gives you extra anonymity and protection compared to just using LLCs.

With a land trust:

- The public records show the land trust as owner, not you. This adds privacy.

- You transfer the property into the trust, but your LLC is named as beneficiary.

- This separates legal and equitable ownership for extra protection.

- You can easily change beneficial interests behind the scenes.

- Only one entity to maintain - the land trust. This saves costs and headaches.

So land trusts are great for valuable properties or if you want maximum anonymity. They complement a WY LLC by adding an extra layer of privacy and flexibility. The trust holds legal title, while you control things privately as beneficiary.

Let me know if this helps

Hey Apoorva, here is some advice I'd like to share based on what you said

- Look at mid-sized cities in the Southeast and Midwest instead of big coastal cities. Some examples could be: Columbus OH, Indianapolis IN, Kansas City MO, Louisville KY, Oklahoma City OK.

- Research cities using census data and real estate market reports to find ones with 1.5%+ population growth, unemployment under 5%, and positive job and economic growth.

- Drive around potential neighborhoods and look for B grade or better properties that seem well-maintained. Look up owners on assessor sites and send letters expressing interest.

- Run the numbers on potential properties.

At today's rates something around $80k-$120k purchase price that rents for-

$1000-$1250 could cash flow 

$100-$300/month using 20% down and 30 year fixed rate.

- Expand your search radius if you aren't finding deals within an initial area. Be open to looking at both SFH and small multifamily properties.

- Have a real estate agent or turnkey company vet properties and provide numbers if you are searching remotely. Use services like Roofstock to browse vetted rental properties.

Great job! Let me know if you need help with anything

I'm sorry to hear you're facing this situation with your real estate investment. 

suggestions on how to potentially mitigate loss:

• -See if the lender is willing to extend the hard money loan to give you more time to find tenants and potentially get the property reappraised later when the rental market may be stronger. This would avoid having to refinance right now.
• -Negotiate with the lender for a lower refinance amount based on the appraisal. See if they will agree to a loan-to-value ratio of 80% of the $235K appraisal, rather than requiring the full $80K cash to close.
• -Consider bringing in an investor partner to provide some of the cash needed to close the refinance loan. Offer them an equity share in exchange.
• If there are aspects of the property you could improve for relatively little money, do so and then request another appraisal. Even minor fixes or staging could potentially bump the value.
• -As a last resort, you may need to sell the property, even at a loss, to avoid foreclosure if refinancing is not possible. This may be better than taking a larger loss down the road.

The key is likely buying more time and negotiating with the lender. Don't give up hope yet - bringing in an experienced real estate attorney may also help represent your interests in discussions with the lender. Wishing you the best in navigating this challenge.