All Forum Posts by: Ramsin Jacob
Ramsin Jacob has started 19 posts and replied 159 times.
Post: Can a licensed agent, partner on a JV fix/flip deal?
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Natalie, thanks for the information and sharing your experience. Sorry that happened to you. I was actually just ripped off by a investor out here as same result but led up differently. Usually investors here will agree to let you represent them to double end the property (purchasing the fixer > flipping the fixer) it makes sense and I believe it adds to the longevity of the business relation IMO. An investor who had agreed upon this in writing, pulled some shady strings and forced me out of the listing when we closed escrow on a flip. Lawyer fees to go after the listing commission wouldn't have been worth it. So just had to bite the bullet and move on. Definitely makes me sick to my stomach. Not to mention I negotiated $105k off from the original contract price. SMH. Because of that experience I am doing my own flips. Too much work goes into getting good deals and a lot of people will snake their way into the deal. So yes, definitely agree, everything in writing. Great points with the questions, funny you brought them up, was creating questions very similar just a few hours ago. Transparency is definitely key.
Originally posted by @Natalie Schanne:
Ramsin Jacob - you may need to talk to the lawyer who does this for the real estate agent/ wholesalers in your community.
I JVed my LLC with another LLC on a flip where the other LLC had 100% property ownership. I paid for and managed repairs in exchange for a % of profit (calculated x way, interest on my money and the listings. After I had spent $15k cash and almost two months full time and the listing was almost ready to sell, they said we don't need you anymore. I didn't get the listing and commission. I didn't get paid until after I filed a lien and the house sold. I didn't get any profit share. I got my materials money back and everything I paid painters, etc.. I could have sued to block the sale but that would have delayed me getting some money back. I couldn't sue as myself their LLC to get the listing commission promised and my broker wouldn't do it.
My main takeaway is GET EVERYTHING IN WRITING before you start because that’s when people are the happiest. What happens if you lose money? What happens if it takes too long to sell? What happens if one wants to spend more for better improvements than the other? Are you the GC or who will manage the GC? I didn’t have any “what happens if this agreement ends before the sale of the property” terms because that didn’t occur to me. Person initially said I work full time. I don’t have the time to do this. Please take this house and make it ready to sell, then sell it. (Later it was like... why are you spending $$ to fix curb appeal, painting, repairing doors? This old furnace without warranty I got off the back of a truck should go into my brand new Flip. But I don’t know anyone who installs. No... we replaced the roof, why put in a crappy hvac?)
Post: Can a licensed agent, partner on a JV fix/flip deal?
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Talking with my lawyer, he tells me there are implications where a licensed agent can fall into legal trouble and possibly lose their license if they are involved within the fix/flip deal? Is this true? I have a property under contract with my LLC entity, so technically, it's my LLC purchasing, not me. I have a possible partnership on the table where the partner funds the deal 100%. If any replies, please focus on the aspect of boundaries on licensed agent involved in the deal, versus the 100% funding aspect. Any words of wisdom is appreciated, thank you.
Post: Fix/Flip Under Contract - Downtown San Jose
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Send me an email if interested for further details. Property is currently under contract with my entity. Ready to be assigned.
Post: How Do You Have Time to Be So Active on BP?!
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Post: SFR Fixer or Develop into Multi-Units
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Looking for an investor who wants to take on this project. Property sits on R3 zoning, which is ready for multi-units. Next door was a SFR converted into multi-units. There are more multi-units on this block already. Please e-mail me immediately if you have interest, so I can forward all the information. Sellers are looking to sell quick.
Thank you.
Post: Risk associated with going with a Private Lender?
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Post: Self Directed IRA LLC/ Solo 401k for Real Estae investment
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Post: Lawsuit Protection & Legal Structuring for the RE Investors
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Post: Beginning Real Estate in California
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Post: Pool in flip house - fix or demo/fill?
- Realtor
- San Jose, CA
- Posts 184
- Votes 71
Haha exactly "Selling Vanilla is better than trying to sell mint chocolate mojito with lime."
Originally posted by @Frank Wong:
I would fill the pool for a flip. Most buyers do not want to deal with a pool which means they don't want to buy a house with one. When you are flipping you want to cater to the masses and get as many buyers to like the house. Nothing extreme. Selling Vanilla is better than trying to sell mint chocolate mojito with lime.