All Forum Posts by: Chinmay J.

@Dave Holman - In Virginia, everything is done online. Are you still using manual method of registering for LLC and such? Is online registration not available in Maine? I can do setting up LLC, getting EIN number, and opening checking account in literally an hour. It will probably take me longer to drive up to the bank than creating the entity. The only funding in my case has come from my personal account is initial money put into the LLC bank account.

@Russell Brazil - Are you saying that because I am an agent. BTW, no transaction has taken place yet other than offer being made.

@Andrew Michael - Thanks for your advice. That's what I ended up doing. Added two addenda and struck out the irrelevant parts. Also got OK from attorney of the Title company that I plan to use that this is an OK method.

Background information on this post. - I have found a property that I like, but may not want to go all the way through with rehabbing it, and would like to see if I can wholesale it.

Typically, in Northern VA area, we use standard NVAR form NVAR – K1321 – rev. 07/16 to make an offer on the property. However, if you are trying to make an offer on the property with the intent of assigning the contract to another party, will you still use the standard form that realtors use.

There are quite a bit of clauses in the standard contract that I would not know if the assignee will agree to or not. For e.g. Section 2  PRICE AND FINANCING. If I put all CASH here, the subsequent assignee of the contract  will have to abide by the terms that I initially agree to. Is that correct? Another example would be various contingencies like Lead Based Paint and Radon contingency, Termite inspection etc. Assignee might want to have a little bit of say in whether they are keen on contingencies. 

So my question is what contract do you as a wholesaler use, so  it gives your assignee enough flexibility. Should I run the contract by Title/Escrow company before signing off on it to see if they are OK with it or not.

@Jeff Gagnon - Good job.. At 27 that's quite commendable. I hope you are accounting for capital expenditure on big ticket items, as sooner or later you will need to replace some of these. Also, vacancy needs to be accounted for. Typically 8% is what investors use. If your area is not great for cheap properties, then look in other areas.

@Timothy Metra - I don't have much to add in terms of advice, as there is already some great advice in this thread, but kudos to you for realizing that for most people college is a waste of time. If you can make it in the real world without college, by all means go for it.  Most of the clowns that teach in colleges have never held a real job in their life, and most of them have never owned even a lemonade stand.  Unless you have ambition for something like a top notch lawyer, doctor, scientist etc, most of the people don't even use anything they learn in college.   

@Naveen Kumar  - If you rent to students, make sure you have the parents co-sign the lease. You can cashflow well with students if you are thinking of putting 3-4 students in say one townhouse and have individual leases for each one.  You can still have one person responsible for writing you the check (Pick the nerdy kid with glasses).

But remember students do have crazy parties (good ol' days). Might want to put in the lease that you need to be invited for the party...just to make sure they don't get too much out of hand. LOL.

On a serious note.. Its a lot of work. Also, if you live out here (in Ashburn), don't try to manage it from here. Hire a PM. 

@Account Closed - That would do it. Smart way to go about.

@Michelle B. - I said both the statements, and perhaps "living" is not the best choice of words. Strike # 1.  So let me rephrase it. Given the fact that they still own the property and bank has not started the foreclosure process......  

For all of those who are advocating that they look at the bank statement, lets take a step back. Which bank statement should the dad look at? I personally don't get any bank statement at home, as I am signed up for e-statements. Its 2017 people; not 1987. The son can't communicate with anyone. So how is the dad going to figure out where to start.  While it doesn't hurt to ask the dad to take a look at one (provided one is sent to the house), for someone who is saying that they DON'T KNOW, would have already exhausted that possibility as long as they really intend to sell the place. 

Given the fact that they are still living in the house leads to only two possibilities. A). Either the mortgage is paid off or B). The payments are current. The son being disabled and all could be getting payment through government, and that could be enough to satisfy the mortgage if its the latter case, so there is no adverse action from the lender. 

@Troy Durrette - I would start with title company and see if they can help you out with a quick title search to see all the outstanding liens/mortgages on the property. Good luck.

All that being said, it does seem a little sketchy. How the hell you don't know if your own damn house is paid for or not.