All Forum Posts by: Malik Welch

I wouldn't Buy based ONLY on a P&L from a seller of a Business or a seller of Real estate. An established business with a management system in place is what we are referring to. Example the owner of a Two location Day Spa passes away. Based on the tax returns the business Nets 145,000 -150,000for the last 4 years after all expenses including the manager handling day to day operations .. You purchase it at 2x SDE that allows you with reason an immediate income of 145,000-150,000 of net income . You take that immediate cash flow and dump it into Buying rentals cash . The investment of 300,000 into that business would provide greater cash flow up front to fund you're rental property acquisitions (which can become very cash intensive) and because the business was semi absentee you can keep you're day job and fund the REI purchases from the biz. Vs buying rentals with that 300,000 and tuning out quick.

I think you'll frustrate you're self looking for good deal in the CSRA on the MLS . Deals are still readily available off market ! very plentiful ! Not so much if you're looking for the same Brick 3/2 on a slab in grovetown like everyone else !

@Branden Kline depends on what type of rental you have. If you're rents are 850 & below I'd . Check with Auben Realty 

Specifically Noah . He's a great guy .if they will be in that 900-1,000+ range I have a different company I would recommend you. (Although auben does well regardless of price point )

If you need a second referral just PM me I'll be happy to point you in the best direction. 

* Disclaimer I'm not a member nor do I receive  compensation from either company *

Thank you for you're insight ! 

Have you went about it that way with you're private money guys? Instead of a deal by deal basis they just give you the money secured by a few rentals as collateral and you  recycle  the money as many times as you can in a year .  

Thanks . That's a good idea !  

Now it's just about finding a good accountant knowledgable in Real estate investin ! 

Hey BP I have a  scenario question for any rehabbers or Accountants.

If I have a private lender lend me 100,000 for a year at 12% APR for me to use the money as many times as I'd like through out the 12 month period doing deals. Let's say I'm able to complete 5 flips.

To keep it simple let's assume I buy for 30k put 30k into it and sell for 100k on all 5 flips. 

After 10% selling cost I have 90k on each.

The end of the year I give him 112k back and I have 450,000 

(90 X the 5 flips)

Will I be taxed as if I made 450k or the 30k gain on each flip. ? 

LOL !  I'm sure you're tenants won't mind buying you another one. A couple of months of collecting rent will buy you another beater I'm sure. 

@Joel Owen , tag him . I've been curious as well to answers for that same question. Taking money from a few flips and buying  established businesses at 2 times cash flow . Buy a few of those profits from those high cash flowing  businesses into multifamily. 

@Jade S.

REIA is more for networking and sharing deals, contacts or things of that nature .

Aore I would say you can kinda get those same things as REIA however it's much more education focused. Not from out of town investors though. Aore prides itself on bringing predominately local investors who have had success and or failures . To come up and speak about some trials and tribulations they went through to get to where they are now.

@James Stockton 

Thanks for you're viewpoint ! 

I think someone would remember a  memorable tv ad they saw  consistently.  I know this one company who ran about 7 tv ads a day for 3 months straight last year around October. I still remember them & their number. Check out their ad https://m.youtube.com/watch?v=pxn2OLwk-50

However I do understand where you are coming from. How would you feel about radio ?