All Forum Posts by: Christopher T

Hi Bill,

I found that direct mail (specifically yellow letters) is a good way to find deals. I use sources like foreclosure radar to find my deals. I recently got a house under contract for about 30% under market value. The owner didn't know how to sell a house and was just going to let the bank take it from him. I sent him a letter and he called to ask me about it. After a few days, I presented an offer and he accepted. The owner is able to preserve their credit score and I got a good deal.

Most of the calls I get from my letters are from people who need to talk to a realtor about a short sale. But every now and then someone with equity will call and that almost always turns into a sweat deal!

Hello everyone. Quick question on options. I plan on talking to my attorney about this but wanted to get some ideas from my BP friends first.

I put a house under contract last week (house is pre-foreclosure). After signing the contract, I found out the owner has cancer and isn't expected to live for more than a year. He is an alcoholic and a hoarder and doesn't work as he suffers from depression. When he moves out of the house I am purchasing from him, he is going to move into another house he owns just down the street which he pays mortgage on.

I was thinking of ways to help him out so that he doesn't have to worry about the bank taking his second house away. I thought of purchasing an option to buy his house to put a little extra money in his pocket to help pay his mortgage (I don't want the bank to take his 2nd house and have him live his last days on the streets).

I haven't dealt with this before and was wondering if anyone on this forum has experience in this. If so, what would be the best way to proceed?

Thanks!

Karen / Sean, thanks for the response.

Karen, where can I check the zoning on properties?

Hello everyone. I am negotiating for a property that has two houses on it. The other properties in the area only have one. The main house is about 1000 sqft and the back house is about 800 (has long term tenants paying $1,500 a month). Comps in the area for 800 sqft are about $420,000. How do I account for the extra house in the back when I make my offer and, if accepted, when I advertise it to buyers (planning on wholesaling it). Thanks!

James, here is the breakdown:
($75.00) - Nevada Filing Fee - (Domestic Profit Corporation)
($99.00) - InCorp Services, Inc.'s Service Fee
($39.00) - Prepare IRS Form 2553 (S-Corporation Election) - We will Prepare IRS form 2553 and include the completed form with your final package. Upon receipt, all shareholders must sign the completed form and submit it to the IRS for approval
($99.00) - Registered Agent Service Fee (1 year)
Optional fees:
($49.00) - Compliance Service (1 Year) which will make sure annual reports are submitted on time and that my business is kept in good standing
($35.00) - Nevada Certificate of Good Standing for a S-Corporation
($69.00) - Obtain Federal EIN Number - We apply for EIN using client's social security information
($35.00) - Prepare IRS Form SS-4 (Federal EIN Number)

Total is about $500.

Also, I was going to incorporate in NV but do business in CA... is there something else I need to do in order to do business in CA?

Thanks!

Josh, John, James, and Glenn -
Thank you all for responding. Copy all on getting finances in order and building credit. I met two reahbbers / flippers at my local REIA that have offered to spend time with me and have already made themselves available for questions. I asked for homework and they both recommended creating my "entity." I have been researching starting an s-corp out of NV and using a company called Incorp to help me with the process. As for my REI team, I have my wife as the RE Agent and she has her contacts through her job. I also have access to investors/buyers through my contacts at the REIA (although I will be developing my own buyers list as time goes on). So, my main effort (after creating my s-corp) is to make efforts to get leads and to get my phone to ring.

At this stage, is there anything else I should be thinking about? Again, thanks for the time you all are taking to respond.

-Chris

Will, I just joined BP and am catching up on all of the reading. Looks like in 2009 you had a discussion about finding an agent in CA who will do a double closing with the "C" buyer's money. I wanted to check with you to see if you were able to find a CA agent that will do this. I've also been told that I can't do this, but I cannot find any legal documentation to support that claim. I look forward to your response. Thanks.

First, thanks Joshua Dorkin for this forum... I am addicted! I've been brainstorm for a few months on how I should get started. I'm currently in the military and am going to request to get out as I am tired of saying bye to my family for 6 months at a time. So, I'll have about 9 - 12 months before I separate. In that 9-12 months, I'd like to get started so that when the time comes, I feel comfortable. I've been reading a lot, listening to pod-casts, and just joined a local REIA. I was thinking of starting my s-corp (out of NV to do business in CA and eventually NV) and then get my feet wet by bird dogging (a few guys at the REIA told me their criteria). As I learn more and feel comfortable, I'd like to get into flipping (wholesaleing and fix & flip). Eventually, I plan on getting my RE license. My wife is an agent, so I am not going to rush into that just yet. I just wanted to see if I'm going down the right path at this stage. I really do appreciate any guidance and mentorship.

Thanks Steve. It does help and thanks for the quick reply. As you can tell, I am new to this. I've been listening to REI pod casts for the last few months (mainly Sean Terry) and have done some reading as well. I live in Riverside County and would like to work in this area. What tips do you have for someone just starting out like me.

I am currently in the military and am looking to separate in about 9 months. I would start part time with the goal of making my real estate hobby into a career. Thanks!

Hello everyone. Ive been reading a lot into wholesaling. Specifically double escrow and assignment transactions. I wanted to know if anyone is actively doing this in California. I ask because I've been told that it is illegal in California. I just wanted to check on the legalities before I start working on this. Thanks!