All Forum Posts by: Josh Bakhshi

Adrian,

I am not a CPA, but this is a case that you can't have your cake and eat it too.  I would discuss this w/ a mortgage broker and a CPA to see if it makes sense to amend your taxes and the pros and cons of doing so.  If she has more than 2 years of 1099, the mortgage broker should be able to make a case for her.  

Tim,

The three most hated letters in the RE world isn't IRS, It's HOA. Stay away if you can.

I would agree w/ Paul on this one.  I have a property on a lake by hoover dam in MO.  I thought I would get mostly families on vacation.  In the summer, it's been mostly people that are working on the dam.  Best thing is that they stay for 2-3 weeks at a time instead of 2-3 days on the weekend.  They also booked reservations in Sept-Nov when I thought it would be mostly vacant.  If it is about business, that should be your target client and have places where short-term contract employees need a place to stay for weeks.  If you want a place for your own vacation, then still stick to my plan and use the proceeds to rent a house on the beach for yourself.

Dennis,

Before you sign anything, you would need to pay a lawyer to review it to make sure everything is kosher and you know what you are getting into.  

That being said, I did one owner-finance deal.  I was the seller.  I got 10% over asking, 7.5% down, 12% interest and a balloon at 5 years on a 30 year loan.  Buyer was happy b/c it was still better than renting and gave him 5 years to fix his credit and improve his income.  I turned around and sold the note to another guy at 92.5% of the face value (minus down payment that I kept), which means I got my original sales price plus the 10% premium.  And the guy I sold it to got 5 years of about 12% on his money.  

It was a win-win-win situation.  That is how you need to sell it to the seller

Welcome Alla. As far as flipping Mobile homes, it is very hard b/c people needing the credit to purchase.  On the other hand, you can get great rate of return from renting them.  The cons are park fees, dealing w/ tenants that need to rent in a park and not being able to sell it easily.  Look in your state for the rules of selling it via Owner-Financing.  That way you might get the best of both worlds.

Good luck

Dave,

I have used them for a fridge, two dishwashers, washer, dryer.  They will try to deny claims and then low-ball you on value.  You just need to fight them.  I know in their contract HVAC is covered so that is the main reason I got the warranties.  

I have mixed opinions on PM.  As I see some of their invoices, I know they are cheating me and I know that is part of the business.  But I don't like dealing w/ tenants either.  Good luck.

Depending on the area, he is probably getting calls and letters all the time to sell.  I think FB is a creative idea and might work.  It also may not be a bad idea to seem like a beginner.  Worst case is that he under estimates you and you play him.  Even if you don't get the property, you'll get exp dealing w/ a pro.  Good luck!

Not in Daytona, but I do have one in SC.  I see you're from OC.  I wouldn't advise doing it unless you're there to manage it.  Paying a PM along w/ all the other things like cable, internet, power...., it isn't worth it.  Not to mention you're income is only 6-7 months out of the year.

Three of the most dreaded letters in RE isn't IRS. It's HOA. Stay away from them. The cost, restrictions and penalties are a horror. Not to mention they are usually run by a bunch of seniors that don't have much to do with their lives so they want to push their power onto you. Stay w/ the SFH

I would think 10-25% is typical.  Remember, GCs get better pricing from the subcontractors b/c of all the business they are giving them.  They are also making about 5-15% on the materials.