All Forum Posts by: John Ingram

I think it makes sense if you run the numbers for your area. I own my home. Nice little home. Needs a little TLC but certainly livable. Obviously. In my area my mortgage, insurance, taxes, all that gravy stuff is equivalent to renting. At this point, for me, it makes sense to rent. Not only is it almost the same but in certain parts of where I live it can be CHEAPER to buy. AND I can LEVERAGE what I own in future deals if a prospect comes my way. But, to be honest, if it is cheaper to rent... makes perfect sense to do that. Run your numbers and see where you fall in your area.

Welcome to the Real Estate investing! I'd recommend you take a look at "The truth about wholesaling" sticky. Very informative.

As a wholesaler your numbers need to be SPOT ON! Your reputation will be on the line and a wholesaler with a shoddy reputation won't get very far.

I'm a firm believer of some money is better than no money so I haven't quite quit my job yet. Like @Doug Woodville said it's very possible but it's time to get to work. My advice? Get a hold of a contractor that will not mind coming out to give free estimates of repair work.

Do you know how to run comps? Do you know how to find ARV? Do you have a buyers list? Do you know where your local REIA is located? Have you gone to a meeting there? Really good questions that as a wholesaler you probably should know the answer to. Keep reaching out and posting on BP. Use them search figure.

We will help as much as the community can.

@Pedro Jimenez

I'm kind of new myself... but I do have some limited knowledge. Here's my take:

Its possible, but also difficult to find wholesale deals on the MLS because EVERYONE has access to it. So to be able to snag a great wholesale deal from the MLS is not impossible... but unlikely. Unless your realtor would give you some insider heads up information. A lot of times they know when property will be hitting the market well before its posted on the MLS. Is it illegal or unethical I couldn't tell you. Like I said. Newbish myself.

The sells pitch dilemma is essential where you put your knowledge to work. Did you do the math for the deal? How much rehab does the property need? All that is leverage when you talk to a potential seller about their property. How motivated are they to sell the property? If you did the math and they simply refuse to sell at the price that is REQUIRED then walk away. Revisit if the property is vacant a month later.

It's not really about the finders fee, assignment fee, etc. It's about the deal. Work the numbers on the deal and let them speak for themselves. There is nothing wrong with making $10K on a wholesale especially if when all is said and done your end buyer is making $30K. When wholesaling your numbers NEED to be on point.

I hope this helps!

@Gary Wyatt

I think I'm taking your advice and going the PENN file route. I've signed up for an account and I'm already underway. I'm nervous but I think I can do this.

I will have to be comfortable guaranteeing the debt. That's fine either way I just wasn't sure if there was some sort of protection. There probably is but nothing I think I need for my current situation.

One last question... Is the Operating Agreement filed with the state or is that just a personal file I keep on file?

@Chris K.

Thank you for the reply! A lot of questions that I had still you touched based on. This is such a new world, new territory, for me that it's somewhat overwhelming but not enough for me to stop. I just don't want to make a major mistake.

I will begin working on an Operating Agreement. I look forward to learning about this process.

I suppose if somehow something goes sour I just didn't want them to "take my house". Though I feel confident that won't happen it never hurts to be prepared. Doing some research I see what you mean about guaranteeing the debt. In a sense if something does go wrong they could sue me personally. Hmm. Some things to consider. May I ask what's your personal take on this?

@Brandon Sturgill

First I want to say thank you for this wealth of information. I believe this is the document I need then:

http://www.dos.pa.gov/BusinessCharities/Business/R...

I think there were some other forms in the instructions that I needed? I'll do some digging on that form and see what to do, not to take up anyone's time.

I always thought that a business, or LLC, would be able to secure its own credit. You also mentioned creating an LLC for each property. Isn't that expensive? Well as I get more savvy in this world I'm sure more will come to me. At any rate thanks for the very useful replay!

PM sent.

Hello to all you fellow entrepreneurs! I have a few questions about possibly starting an LLC. I was reading through some of the FAQs from the stickies in this forum as to not create another thread that was posted 32 times but I think I'm at a lost. I apologize.

I suppose first things first. I reside in PA. The real estate I'm investing will, more than likely atleast for now, will be in PA. I'd like to incorporate here in PA. At first I thought just incorporating was enough for my personal protection. So here's my line of question for you savvy business men and women:

1. Does anyone know exactly how to incorporate here in PA? Now I tried to do this somewhat on my own but I traveled to the Chamber of Commerce, to the Courthouse, to another destination that I can't quite remember, to the county website, and I have yet to figure this out. I know it is a simple procedure. I know it cost about $150. I just don't know where to file any paperwork or find any paperwork to fill out. I kind of want to avoid LegalZoom and website's such as these due to my inexperience but also because it seems cheaper doing it on your own. I didn't think I would need an attorney for a simple LLC but that leads me to my next question.

2. As I mentioned above obviously I'd like the LLC for my personal asset protection. Do I need an Operating Agreement? The only person on the LLC would be me. I suppose to keep things "tidy" I could have one. What would I need to have in order to ensure my protection of my personal assests?

3. Afterwards when I do incorporate I'd like to build the business credit as quickly as possible. What is an efficient way to do this? How soon would a new business qualify for a mortgage? I guess I'm curious and also trying to gauge how quickly my business can get into acquiring capital from investment properties. I was thinking it was something like ones personal credit. Open up about three cards, maybe a secured CD just for the installment line, I'm not sure. That's why I'm asking you fine ladies and men.

I just wanted to say thanks to all those that read and those that respond. It is truly a blessing having a community like this.

Much success!

John

Second post Duane so I'm not 100% sure how to use forum functions lol sorry. But I would love some information from you about which closers you use. I've had a deal fall through because of this...

Feel free to PM me or if I find out how to do it I can PM you.

Thanks!

From my understanding you can't assign contracts in the state of Pennsylvania. Your going to have to double close. So your going to need funding for your section of the transaction.

You might be able to find a couple of funders on here. Or just google a few and look for reviews. The main thing from funding is there is a fee associated with that. So find a funding company that your comfortable with and recalculate your numbers to include the fee and see if it's still a deal for you and your end buyer.

Good luck. I'm also in Pennsylvania, not too far from Pittsburgh. Feel free to reach out to me.