All Forum Posts by: Shawn Holsapple

Thanks Monti appreciate the input. I am not planning on moving to NW Indiana, I just want to invest out there. Another 5 years or so when I retire we are planning on moving to Colorado where are retirement money will go a lot further. Heard more good things than bad about the solo 401K so that is the route I am taking and going to invest from there. Not fond of the stock market dictating the growth of my money.

I've been able to grow me & my wife's Solo 401k exponentially through REI and love the check writing feature.

Let me know if you ever end up investing in or around Indy.

0 Votes

Welcome to BP @Jack K.!

All good points above. As you can see, taking it slow is very important here! For now, just leave it in the bank [ugh,shiver...] and sit on your hands until you have a solid plan. Don't be tempted to take down the first "deal" that you see or that is presented to you.

Don't forget: "The Deal of the Century Happens EVERY Week"!

I love the mid-west to invest in. One can enjoy solid returns without the worry of wild swings in values.

Another thing you should consider is taking a portion of the funds and becoming a lender. It's not hard to turn a strong double digit return doing this. Of course, like everything else, this can and is risky. Be sure to do LOTS of due diligence before doing anything - IMHO.

Don't hesitate to post more questions and ideas - we all love to help out when we can here on BP!

- it's always good to see another investor utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/ - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast -I hear #136 is exceptional!

Wholesaling101 You Tube Channel

Kent Clothier – You Tube Memphs Invest channel

0 Votes

@Jim McCabe - all good points above. I've been involved with several flips in BG and all but one had high def laminate. I think anything under $180k in this market would not be a good ROI.

Menards seems to have the best prices on laminate counter tops since they have their own counter top shop. I've found them to be around 30% less than everyone else.

0 Votes

Indianapolis, Indiana

Welcome to BP @Danny Taylor!

I grew up in Mitchell and have been to Washing many times.

I own several rentals/rent to own assets around there as well.

I love the small & rural communities to invest in. There are plenty of renters or tenant buyers with little to no competition on the buying side.

- it's always good to see another Hoosier utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-... - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast -I hear #136 is exceptional!

Wholesaling101 You Tube Channel

Kent Clothier – You Tube Memphs Invest channel

1 Vote

Originally posted by @Jim C.:

@Shawn Holsapple- Thanks for your feedback. I too, met with a corporate attorney in Indy near Allisonville Rd and 465 and they recommended what you mentioned. The issue that I brought up with them is that land trusts, especially if the property is already in my name or company name and I transfer to a Land Trust really doesn't 'hide' the assets as they claimed, since they were originally in my (or my company's name), any litigious attorney can easily find out that I once owned the property and then go forward with suing the land trust as well. Land trusts are only good if you buy directly and place the asset into a land trust for ultimate anonymity. In addition, converting to a C corp causes double taxation and becomes very expensive if you have alot of properties. I'd be more than happy to share with you what I learned from that attorney with you if you are interested. I'm in Indy quite a bit and we can meet up sometime to discuss further if you're interested.

Several "experts" say even though the asset was purchased in your name before switching to the land trust, it can still stop or slow them down from finding out who the current beneficiary is - especially if your trustee has a PO Box [preferably out of State].

Yes, the C corp can be double taxed...but - the first $50k is not. That's what I plan on doing is running the first $50k or so of profit through it and then the rest through my S Corp. The C Corp allows be rent my house 14 times per year to my company, write off medical expenses not covered by insurance, travel, entertainment, etc.

Feel free to PM the next time you're in Indy, I'd be glad to dig into this deeper.

1 Vote

@Jim C., I'm in the process of rearranging my corporate structure as well.

My local Indy corporate attorney advised against using the series LLC option since it's brand new to our State and there is no precedent yet with them to see if they stand up in court as expected.

For me, this is the way I'm leaning:

Convert my S Corp to a C Corp as the holding or management company, then use LLC or Land Trust for each property or set of properties that is then all held by my Living Trust.

As far as the comment above about having your CPA setup your LLC structure - I've always been a firm believer of paying the right professional for the job...I'll gladly pay more now to the attorney to setup my LLC vs. saving a few bucks to have my CPA [bean counter] do it [unless the CPA is also a real estate attorney] - just my two cents...

2 Votes

Originally posted by @Todd Krzeminski:

@Shawn Holsapple I'm curious if you have PM recommendations. I'll say I'm less than enamored with the PM I'm currently using in Indianapolis and possibly looking to make a switch.

PM Sent!

0 Votes

Indianapolis, Indiana

Welcome to BP @Jason Gruber!

All good points above. Going with a TK to get started is a good way to get instant cash flow. This, of course, comes at a price.

There are ways to buy a TK asset without the "Turn Key" price. I'd be glad to help you with that.

BEFORE you buy any asset, though - you need to interview a few/several property managers and get their blessing first before making any offers - IMHO.

4 Votes

Indianapolis, Indiana

I've been using a Solo 401k [which has check book control] over over 2 years now and love it.

My wife & I had two small IRA's that had nearly the same amount as they did 20 years ago sitting in the stock market.

I was able to triple them both in less than 9 months doing wholesale and a flip or two.

As mentioned above, be sure to weigh the pros and cons of "check book" control.

A good resource here on BP is @Dmitriy Fomichenko with Sense Financial.

And of course, if you end up in Indy, feel free to reach out to me with any questions!

0 Votes

Welcome to BP @Brent Roberts!

Yes, Indy is a great market AND very active at the moment.

As a general rule of thumb, one can't really filter by zip code here since it's very street by street.

I would suggest [as always] start off by interview several property managers BEFORE looking at any property. I see so many out of State buyers purchase an asset on a whim and then talk to a local PM to only find out they paid way too much and it's located in a rough area...

I'm a fan of LLC's and lots of asset protection. The Rich Dad Education series of books offers some good ways to do this.

I hope that helps.

- it's always good to see another investor utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/ - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast -I hear #136 is exceptional!

Wholesaling101 You Tube Channel