All Forum Posts by: Rocky Verteramo

I have sent my info into yellowletters! Thanks! Should I contact you directly? 

Thanks Claire! Thanks for the advice and good to know you are with yellowletters! When would I use yellowletters? After I acquire my lists from list source? What info do I need ahead of time before I really start looking into yellowletters?

Hi Everyone! I am new to investing. I currently only own 1 rental and just purcahsed my first fix and flip with a partner, so we will see how that goes. I live in a college town, student / football weekend rentals are my niche. Most houses in this area go up for sale and are sold with in days, and sometimes hours! There are usually multiple offers and bidding wars are common. I was fortunate to get one plus I rent out my primary in this area during football game weekends.

I really want to start direct mail marketing. To be able to possibly get to a potential seller before a house goes on the market, I feel this is something I may have to try and do.

Question #1 -  Where do I collect lists such as vacant home, absent owner, tax default or divorce / bankruptcy lists? A department of the county city building? Online?

Question #2 - I have heard of yellowletter.com through BP. I haven't done much research on them yet, but it seems like they may help with this kind of work. Does anyone recommend them, or anywhere else that I can get help in this form of marketing?

Questions #3 - Is there any do or don't advice you could inform me of that would better help me educate myself on how to go about this without wasting time and money on areas that may not be beneficial or helpful?

Thanks everyone, in advanced, for any help!

thank you all for your advice! I do meet with my lawyer next week, who also specializes in real estate, so I'll have a lot  of questions and points to bring up thanks to your input!

I would like to get to 4-5 flips a year eventually. Could I still or use an entity for that? Could you tell me what an indemnity is? Thanks! 

Manolo, Thanks! That is how I thought it was. Then I heard because it is a fix and flip it could be taxed more and that I should look into an S corp.  Maybe who told me this assumed my friend was going to be my employee rather than just being someone I am splitting profits with? I was under the impression that it was how you just put it, just as my long term rental. 

Hi guys! So, I am new to the real estate business. I was getting excited about the whole fix and flip aspect but with taxes and confusion of it I'm not sure I am ready without a little advice. I will be meeting with my lawyer next week but in the mean time I was hoping for some clarity here.

1. If I flip a home and make a $10,000 profit, what would my taxes be? I know for my long term rental that i currently have under my personal LLC, that income just flows through to my own income and I am taxed once on my income plus my rental income. Is it way more that just that when it is considered a flip?

2. I am considering doing fix and flips with a friend of mine. I will purchase the home in my name in cash, as well as fund the renovations. He will be taking care of finding the deals, negotiating, watching over the reno, and find / deal with a new buyer. We will be splitting profit after additional costs 60/40, with my cut being 60%. At the end of the year, I will then be assuming taxes on the 100% though, right? To avoid this can we find out what taxes will be on it ahead of time, then take that into account before splitting the 60/40?

Thanks guys!

ok got it! I have it all set up correctly then. Thanks! 

Thanks Gino, What do you mean by an operating agreement? I do have an LLC already, done by my lawyer so I am assuming I have it, but just to be sure, is it something extra to add to an LLC? Or are you referring to if I do work with a partner and use an LLC, to make sure there is an operating agreement for those investments?

Hi guys! I am new to BP and I am loving it! I was hoping someone could help me out with something. I just bought my first rental property a few months ago and opened up an LLC to put it under. I have been doing my research and I feel that I am going to be investing with a partner with fix and flips. So to get my feet wet, I am in the process of purchasing a cheaper home / reno to understand the process better. So I assumed I would just put the cash purchase of the home under my LLC. Then my bookkeeper informed me I should just put it under my personal name for now and then set up a possible S corp for my fix and flips, since fix and flips will be treated differently.

I have contacted my lawyer and am waiting to hear back on what to do, but with all this experience here I was hoping to get a little insight on your opinions and if it makes any sense!

Thanks guys!