All Forum Posts by: Sherry Lewis

Tameka, welcome to the BP community! I am considered a newbie as I have only had my business running for about 3 months and spent 3 months prior to that doing nothing but research! Happy to help any way I can!

Can someone explain a JV to me?

Thank you both. I actually purchased all with cash. Two were at auction with investors and 3 were county foreclosed on properties. All previous liens etc against property extinguished when county foreclosed them. Only thing that could hold is IRS. Full deed ownership. The other 2 title searches were good, no suprises just the county taxes as expected.

I don't know that I was asking for these particular properties on wholesaling, but wanted to understand the concept to see if that was an avenue I may check out as a branch of what I plan to do in the upcoming months. I am working at building equity at this point to be able to fund fix and flip and rentals. Great deal I believe on all properties. Have local realtors looking at the properties for me now, securing, estimates, comps etc.

Hi all,

Can someone please explain wholesaling to me? I have very little info on the concept. I have purchased 5 properties in the last 2 weeks and I am thinking I may want to flip 2 or 3 or them to another investor. Is this where wholesaling would come in? Any info/education on this topic would be greatly appreciated.

With the llc, if anything went wrong it could not affect either of us on a personal financial level. It also gave him controlling interest and position within the llc since it was his money on the line. I am not very familiar with jv agreements so I cannot speak to pros and cons, I just know that it seemed to be the best way to protect his assets and give me re-assurance in writing that the labor I was going to put in would pay off as long as I stayed within our budget and we would profit.

I agree with Rob. I did a rehab for investors back in 2003 with very similiar circumstances, only I was the one with no money. I did all of the work and my partner put up the money. We formed an LLC with him as the managing member. He owned 51% of the llc and we did the profit split 50/50. It all worked out nicely. Of course I guess he was even more trusting as he would send money in increments for repairs. I kept an accounting of all the receipts and sent him original receipts and accounting monthly on expenses paid. In the end, we purchased a property for 56k spent 85k fixing it up and sold it for 185k. The property was completed in 4 months so it all work out quite well. I do know he made sure to have the property appraised before we began to assure his money would be well spent.

If you decide to do this again with someone let me know. I loved it!

Mubasher,

I just wanted to follow up with you today and see how you faired with the property. What did you decide to do?

Welcome to BP Peter!

Ok I just noticed up top that it looks like Michigan. With all of the tax auctions going on right now in Michigan I think you could walk away with a much better deal. PM me if you want to discuss them. I just purchased 3 in Kalamazoo. [SOLICITATION REMOVED]

Mubasher,

I am also a newbie but I have purchased my first 5 properties. It sounds to me like the cost of rehabbing this house or rebuilding this house; you could end up pricing yourself out of the market. The house next door sold for a substantially higher price because of the size difference in the properties. I read back, but could have possibly missed it; what state/city is this property in?