All Forum Posts by: Daniel Raposo

Also, you could operate as a DBA, just not an entity like an LLC or Corp, so that may be a work around for you.

CT licensing law doesn’t allow for entities to collect a real estate commission unless they are licensed as a real estate broker. So even if you are a licensed agent under a broker you can’t have your broker pay commissions to an entity unless you and the entity is a licensed broker. What you could do is form a team under a broker like KW and have commissions split among the team. I know KW has a bunch of teams but they all operate a little differently depending on the splits and setup of the team. If you are licensed agents and want to keep working as a team as agents, your best bet is to talk to a brokerage about how they can make that happen but I just don’t think you could have your broker pay commissions to one entity for all of your team to have you guys then split the up as you see fit. Disclaimer, I’m an agent at the KW office in Stamford and also teach principles and practices classes for new agents and continuing ed for current agents. Let me know if you want to talk directly.

It’s definitely worth the extra paperwork if you don’t have the money to put down at least 10% plus closing costs, escrows, etc and are looking to get construction money to fix a place up. If you can put a larger payment down up front there may be other construction loan products that might be better suited for you, although most construction loans are going to require extra paperwork. You should really talk to a mortgage broker to figure out what loan products might be best for you.

I own a couple properties in Hartford, and one of the reasons I like the area is exactly what you said in the beginning; the availability of mid size properties which aren’t as common in other areas around here. If you go to any city in the Northeast it will have it’s good areas and bad, just know which are which and try to stay away from areas you aren’t comfortable with. More importantly, the big distinction that needs to be made is that lower rent areas don’t always mean lower quality tenants. There are good and bad tenants at all income levels, one of the keys to success is finding the good ones and avoiding the bad ones. If you’re lookin to hire management for your properties, you should know that companies typically charge more for these smaller properties and lower rent areas, and you will need to be careful at keeping an eye on them and your property. With smaller properties you have a lower margin of error so empty apartments or unkept maintenance can quickly add up.

Thanks Jerryll Noorden So essentially you’re getting money back from the contractor for work he didn’t perform, so your rehab costs will be lower than the $120k and actually closer to $95k once you get that money back? How long did the deal take from close to close and where was it? Just interested to hear more since I’m also in the area. I’m also glad to hear you found someone willing to do the 50/50 split despite the haters telling you otherwise. That is exactly how I structure my deals, the money is only half the deal and therefore only half the profit. Just because someone else is willing to give up more for their time and effort doesn’t mean you or I should.

Hey Jerryll Noorden Congratulations on your first flip!! It’s been a while, but I’m glad you stuck with it. I know you said it was complicated, but if you sold for $325, rehab and house cost $184.5 how did you profit $165? Not accounting for closing costs, carrying costs and such, it would seem you profited $140.5 unless there is some math I am missing here? Not trying to be a downer, I just like to see people including all expenses and such when talking numbers. Either way, great job. Congratulations Dan

I have a bought properties off Hubzu.com and Auction.com and the process is certainly a little different than normal. They both use standardized documents and typically have these documents available on the property page. My suggestion is to have your attorney review these prior to bidding because once you have won the auction they move to contract and deposits very quickly and don't give much time for document review and such. 

Also, both sites will bid on behalf of the owner and allow bidders to set max bids and do an auto bid so a lot of times the prices just seem to be going up automatically and it is because they are... One interesting trick is that the sites will typically relist properties if they don't reach the reserve price. However, if they receive many bids they will either relist the property at the same or a higher starting price. If the properties don't receive any bids they will typically lower the reserve price, so sometimes your best strategy is to sit on the sideline and not bid when the properties first hit the sites. This helps to bring the reserve and starting prices down to more reasonable levels. I bought a property in December off Hubzu that had been on the site for months, getting relisted week after week after week, but I didn't bid on it until about month 2 because the prices were just two high and I didn't want to show a lot of activity on it. 

Hey @David Noskiewicz

I think what you are experiencing is pretty typical for new investors trying to get into the business. Wholesaling is the most difficult type of real estate investing you can try to get in to from the ground floor. I won't walk you through all the incredibly difficult steps of actually completing a wholesale deal as I'm sure you're completely aware of them all. Just saying, it is the hardest type of basic investing. What you're hearing from attorneys and agents and such is also typical, as not a lot of people actually wholesale properties so not a lot of these people ever interact with a wholesaler or wholesale deal. Don't worry too much about it, if you really want to wholesale just keep trying to find a good deal. 

Hey @Account Closed

There is a meetup in Fairfield tomorrow night if you're free. There is typically a really good turnout and mix of investors. Hope to see you there.

Dan

https://www.biggerpockets.com/forums/521/topics/33...

Welcome to BP! It is a great site to learn all about real estate investing. Take the time to set up keyword alerts and you can find some great meet ups and other investors in the area. Dan