All Forum Posts by: John Fossetti

You should consult with a CPA and Tax Professional. I am not sure where you are going with this, but I will chime in and I hope this helps.

I have a decent size house on a Lake. Once a month, my LLC rents a portion of my house for a day event (cookout or whatnot). The LLC pays the trust that owns my house $1,000 per an event. I have 12 events a year so I am renting out my house to my business for 12 days out of the year. .

According to IRS code, you don't need to claim any rental property if you are renting your property for less then 14 days of a calender year.

Since renting my home and having the functions at my residence, it is cheaper than renting a local hotel which has sometimes cost me a couple of thousand including food and everything. My business gets to claim an additional $12,000 of expenses but I don't need to claim it personally as it is only for 12 days out of the year.

I am not giving tax or legal advice just stimulating your thought process and sharing what I have done!

I hope this helps.

Hello Jeremy Collins, welcome to BP, there are two things an entrepreneur has to get their business going. Either TIME and MONEY. If you have the time but not money, do things like Door Knocking and Cold Calling. If you have the Money, you could hire people to do that for you.

Drive for dollars and find those houses, then do online research to find the owners information. Simply call them!

Welcome Suzette, there are many experienced investors here that are willing to help. I am on the other side of the country (Massachusetts) but I do know some investors out in the Seattle Washington area.

Welcome to BP Latarus Thomas and Jay Hill, I do have some investor friends a little south of you in the Fort Myers area in FL.

There is a wealth of knowledge here on BP. Keep asking your questions as there are many experienced investors here willing to help!

Welcome to BP Rory C., there are a lot of people here to help you out. Starting out in Wholesaling means you should get a business plan and marketing plan together. A good and reputable wholesaler gets properties that don't have an agent selling it. I see a lot of new "wholesalers" bringing deals to people that are listed on MLS. That isn't a true wholesaler unless they get it at the right numbers.

If you get properties directly from sellers, that is when you will see more rewards, in order to get them, you need to market them. I always tell people to get your face in front of your leads. Every seller wants as much as they can get, so you have to create the deal, they aren't going to call you and tell you that they want to sell their house at 65% of the ARV minus the repair costs. It is up to you to get them to accept the amount.

So a good wholesaler is a good marketer and a good negotiator!

Hello Ruslan Khachatrian, welcome to BP! Like Paul Timmins mentioned involve yourself with the local real estate groups here in Massachusetts. There are multiple REIA's / Real Estate Groups as well. Check meetup.com as well as there are many other people who get together for a mastermind group. I know Ann Bellamy Has a great group called Black Diamond in Waltham and Worcester and Mike Hurney has a great group in Peabody.

Utilize BP to ask the questions you have, there are many experienced investors in here willing to help. Good Luck!

Hello Tinna Li, welcome to BP, you will definitely get the education on here. Check out the Podcasts and blogs as well.

When you become a wholesaler, you want to put together a marketing and business plan, you know if you fail to plan you plan to fail. There is a lot to know and it could get a bit overwhelming but don't be afraid to ask questions.

Hello Nicolas Pretelt, I have copied and paste my questionnaire, It is not formatted but should give you an idea of what I ask.

Name:_____________________________________________________________________________ Date:__________________
Address:____________________________________________________________________________________________________
Home Phone:________________________________________ Work Phone:_____________________________________________
Cell Phone:__________________________________________ Fax: ___________________________________________________
E-mail:_____________________________________________ Lead Source:____________________________________________
Owner(s) on Title:_____________________________________________________________________________________________
Are you most interested in? [ ] SELLING [ ] REFINANCING [ ] KEEPING
Do you currently live in the home:____________________ How Long:_________ Style of Home:_________________ Sq. Feet:_________
BEDROOMS BATH RENT
UNIT 1
UNIT 2
UNIT 3
UNIT 4
Garage:_________ Lot Size:___________ Special Features:___________________________________________________________
____________________________________________________________________________________________________________
Any Repairs Needed:____________________________________________________________________________________________________
__________________________________________________________________________________________ Repair Cost $:_________________
Is the Home Listed:_______ How Long:________ Starting Price:_________________________ Current Price :________________
Any Offers:_____________ How Much:_________________________________________ Listing Expires:____________________
How Much Will Property Appraise For:_________________ Realtor:_______________________ Phone:_____________________
Reason for Selling
Is there a particular reason you are looking to sell at this time?__________________________________________________________
____________________________________________________________________________________________________________
How quickly are you looking to sell?______________________________________________________________________________
What are you looking to sell the property for?___________________ Is that price flexible?__________________________________
How did you establish that number?_____________________________ Bankruptcy? ________ Foreclosure Sale Date? ________________
What are you going to do if the property does not sell?_______________________________________________________________
Mortgage Information
What do you currently owe on the property?_________________________________ Loan type: [ ] VA [ ] FHA [ ] Conventional [ ] Other
Mortgage Company 1st: ________________________________________________ 2nd: _______________________________________________
Are you current on the payments?__________ Months Behind?_______________ Amount Behind? $_____________________________________
What is your monthly payment? ___________________ Does that include Taxes and Insurance?_______ Taxes:____________ Insurance:______
Interest Rate: 1st_______ 2nd________ Fixed ( )_____ Adjustable ( ) ______________ Prepayment Penalty:_____________________________
Any other liens or Mortgages?_________ Other Lien Amounts:_________________________ Back Taxes:_________________
Follow Up and Discussion Notes/Needs
Evaluator:________ Appointment Date:__________ Time:__________________ Exit Strategy: _____________________________
As Is Value:_____________________________
Repair Cost:_____________________________
After Repair Value:_______________________
Likely Purchase Price: ____________________
NOTES:

Welcome to BP! And you are correct, Market and Market often!

Wholesaling is the first stage of any Real Estate Transaction. Most people are afraid of Renovations off the bat because there is a lot more money at risk and it isn't as quick of a pay day than wholesaling is.

Market and Network and do it a lot and do it consistently.

I have utilized Yellow Letter, Postcards, Flyers, Cold Calling, Door Knocking and everything else in between . You need to split test what works in your area.

I definitely do not send Postcards to Pre-Foreclosures. You don't want the whole world knowing they are potentially going to lose there property.

I always carry a Seller's Questionnaire with me. I have a bunch at my desk, in my car, and pretty much where ever I am .

When someone calls me and tells me "I'm facing foreclosure. How can you help me out?"

I will respond: Thank you for calling, I am here to help, every situation is different so if you don't mind I will ask you a few questions and then I will let you know how we can proceed.

I do that to get to know the caller, make them feel more comfortable with me. They don't know what is going on and who to trust, so by asking them questions about them and their situation I am calming there nerves and hopefully get them to like me.

People will do business with people they like and trust.