All Forum Posts by: Shane Wilson

If it were me I think I would find a place to lease and negotiate an option price for a couple year for a few dollars. When it gets closer to time to move try to sell the property higher then the option and take a fee to remove the option for the difference.

To go into a market you know nothing about, find a place to purchase which is also a good deal, plus completely move which in itself is a task and a large load on you. I would keep it simple. A lease option is less risk yet you can still collect an upside. If you mess up you don't lose your shirt or have a long distance rental that doesn't cash flow well.

Hi Melissa,

Whats your goal with this house once you get it? Rent it for cash flow? Resale? Live in?

Your end goal determines a lot of what you'll do on your offer.

You don't need a legal entity with the money partner. Just write up an equity participation note saying he is entitled to whatever percentage of the profits you agree upon and secure it with a mortgage.

I personally require money partners to put up all the money if I'm doing all the work and finding the deal then a 50/50 split upon resale. I don't think I'd fool with someone only wanting to put up half but if I did I would find an additional partner to come up with the other half and it would be a 33% split for everyone involved.

Wholesaling is dependent upon having a large network of investors. In my area it just doesn't work for a full time basis. There's not enough investors in our area to make it work and if you add in the fact that there are so many deals out there its a tough place to start right now.

I recommend finding a partner. Buying a few good cash flowing properties and sell them on a rent to own basis. See if you can get them cashed out in 1-3 years. Take that money and move forward.

I think there is a somewhat misconceptions about mentors. Your probably not going to find a local investor who will just open up the whole playbook to you right away and be an official mentor.

However, I consider several people in my area who were mentors but they didn't know it. Its more about networking then a formal teacher - student relationship.

Hanging out at REIA meetings, and having lunches with the real investors in your area are informal ways of getting mentored by the experts in your area. If you hang around them long enough you should be able to learn what their doing and how they do it.

I found most of my concrete knowledge online and mixed it in with what I learned from those in my local market.

You would be better off collecting a fee if they buy a property that you send to them.

I wouldn't pay $50 per house for just a report but I would pay a bird dog fee at closing for finding a house that I eventually buy.

However, another idea is if you bundle them up and sell a list of 20 to 30 possible leads at once then you might be able to collect an upfront fee.

Corey if you have a property under contract for 50K and a buyer at 60K you have two options to collect the 10K.

You can do an assignment for 10K or you can double close collect to the 10K.

An assignment is selling the contract and there is one closing with all 3 parties. You collect your fee at closing.

A double close is two separate closings. One with the person your buying from and one with the person your selling too. The double close keeps the amount that your making hidden from both parties.

Check with your CPA. They would know for sure. You can also google the form directly from the IRS website it'll have all the exclusions on it.

If she qualifies she'll only be able to claim up to $4000 or 10% of the purchase price whichever is less. Its $8,000 or 10% whichever is less if its a married couple.

I would buy with cash and refi in a year for 75% of appraised value from a local bank assuming you cashflow correctly.

I have found that with the appraisals for the larger banks they appraisers come in lower since their client is the big bank and their goal is to make them happy and to protect them.

With the local banks as long as the appraiser is respected they pretty much let me use who I like but as was previously said its all about building relationships with those banks.

For mine I use Antique White flat with Semi-Gloss white on the trim for nicer rentals.

For lower end rentals I just a 1 color flat ceiling white.