All Forum Posts by: Maurice Smith

@Hector Castro

I'd recommend joining Traction REIA. Look them up. It's the largest REIA in the area and there are investors of all strategies on there. Plenty of good networking and education opportunities. You can learn about wholesaling (and more) and there are investors that can help with a lot of the major challenges for beginners, such as deal analysis, structure, funding, and end buyers. They cover the DMV.

@Jesus Valdez

Facebook has taken a beating with all the misinformation that has permeated the platform in recent years. In response they have revamped their algorithm which flag more posts, pages and otherwise. Since your posts/ads are related to a special category, “housing” nearly all filters and modifications that might be considered discriminatory based on one of the covered areas will be rejected.

I'd recommend requesting a free consultation with an ad specialist and explain your ad objectives and develop a package with them that meets the standards. Also, get an external site as soon as you can and drive your FB traffic there. Also, don't plan on FB as your primary source of ad and lead generation. In my opinion Google Ads will yield better benefits (ROI) in the long run, but FB can be an important component of your social media presence and overall SEO strategy.

@Devon Rollison

I am unfamiliar with how it works in Canada or where your deal is for that matter, but perhaps you could explore using a HML. Many of them provide Transactional Funding for Wholesale deals; further, should you not find a buyer, or decide you want to actually take on the flip, you could potentially be in a position to secure a Rehab loan so you have the capital to perform. Of those that I have dealt with, they do something called "asset-based" lending, which means they will examine the veracity of your deal and the numbers to ensure it's good and limits some of their risk exposure. If you get it, you can request a POF, and with that anyone that wishes to verify your access to said capital could do so with the HML. Just make sure they are reputable. I have received good recommendations through my local REIA and investor-friendly attorneys and title companies in the past. Come to think of it, I've known some RE agents/brokers in my locale to provide some good recommendations too on HM or Private Funds. Perhaps this could be an option for you.

Best of luck.

@Steve Morris It is legal to wholesale in North Carolina. @Tucker Cummings Getting yourself on the DNC list is one step you can take. Additionally, not sure how you are taking title, but I believe if you can purchase in a trust, and I know that if you purchase in an LLC that offers anonimity, that should help because they won't have an individuals name to skip trace. Also, keep the address that you pay taxes on your properties as a P.O. Box or business address that is not associated with your personal name.

@Jack Hritsko

Don't waste your money. Invest in a monthly subscription to PropStream, which will give you access to MLS data, county data, and so much more. All the other information that you need is on here and other platforms such as YouTube for free. Join your local REIA and find a mentor there. There are some good books that are low cost as well. Take the money you were going to use and capitalize your LLC.

I’d also recommend taking your state’s mandated training/education for real estate licensure. Whether or not you choose to take your test and get the license is up to you. Wholesaling while licensed can be more complex, but people do it (and do it well). The main thing is, taking the training will educate you in the foundational aspects of real estate which only helps you.

Wholesaling is but one of many strategies and depending upon the property and situation, you would leverage one over the other.

Best of luck in your investing. Put you money to work for you, not in someone else’s pocket.

@Ethya Lawani I agree with @Basit Siddiqi. Form or "organize" your LLC in accordance with your state laws. You can go to your state corporations division website and access all the instructors, documents, and guidance needed. Most states are now offering online submission of creation documents and corporate filings. You will need to pay the associated fee and you'll be set.

Where any attorney is crucial, is the structuring of your Operating Agreement. Depending upon the provisions you have included within your OA, they have varying risks and mitigation should your company ever be sued.

A CPA can be helpful to consult for determining certain tax elections and other aspects of how you wish your entity to be treated for tax purposes. A tax or corporate attorney should be able to help you out with some of the more nuanced aspects.

Not sure about your state, but in the states where I have incorporated, an OA is not required immediately during filing of “Articles of Organization.” You can have that written and signed later. You need only maintain it on file as it is not required to be submitted to the corporations division.

I hope that is helpful.

@Omar Barazi Get in contact with a private money lender that does asset-based lending. Many provide transactional funding, or if you choose to, fund for the fix and flips. Either way, you have two benefits, 1. they usually have someone that will analyze the deal, which is an excellent way to confirm your numbers, and 2. you can ask for a proof of funds letter, and you'll have the ability to perform in your contract. Ideally, you'll want to coordinate with your private money lender before you make an offer so that you're on the same page with what price you need to get it under contract for based on what they will cover. After that, if you want to assign it and have an end buyer, do so (make sure your contract is assignable); otherwise, you also can close and take on the project. Additionally, if you determine it's in your best interest, you could always use the transactional funding to execute a double-close. We met our primary lender at the local REIA (I’d start there), and they are fantastic to work with.

@Maureen Santibañez I’d recommend sending your contract to the prospective title company/closing attorney you plan to work with. In many instances, they will be operated by or be an attorney. They can look over the contract to ensure all the pertinent clauses and disclosures are in the contract. If something is missing, they will either make recommendations for what else should be included or provide you with a standard contract of their own for single and double closings. My closing attorneys and title companies both provided this service for me at no fee. It benefits them because they will get business by closing transactions for you in the future.

@Jason Hill

I’d recommend having a conversation with a Real Estate attorney and perhaps another that covers cyber activities. Discuss what you would like to do and have them provide you legal advise on any potential legal exposure for your business entity, and or yourself.

I see a lot of people on here stating what is and isn’t legal, but I’d recommend doing your own due-diligence and confirm those assertions with someone that holds a license to practice the applicable area of law for your questions.

Ok @Bri Webster, last one. This one is about how I use Propstream to identify cash buyers in an area. Again, you could do this with any system that gives you the data necessary to perform the analysis. 

1. Pick an area/city/zip code and filter for "Cash Buyers," which will return all the property sales transacted with cash. (Tip: If you are targeting specific cash buyer criterion, you can refine by property type, etc.)

2. Refine your sales date to the last year to get current buyers in the area you are searching. (Tip: Find the hotspots where cash sales are occurring, target the demand).

3. Examine the ownership details; you'll get one of two types, individuals or businesses (e.g., LLCs or Corporations). For the individuals, skip trace them or send them mail at the address listed. For businesses, note the owner's address, which usually indicates the state of organization filings. Search the state corporations site for the entity. You will get one of two POCs from the filings, either the members (owners) or a Registered Agent. You will have to skip trace the members, but the RA must have a physical address in the state to receive legal documents and correspondence. You might attempt contacting them to relay your desire to add the member/owners to your buyer list. Take note if the RA is a registered member of the State Bar/practicing attorney (it is easy to find their contact information; email, phone, etc.)

Note: This is just what we do... For individuals, we click on the linked properties, which shows other properties owned by the same cash buyer. If they have 3-4 or even better 5-10, they are likely more established and could be good cash buyers.