All Forum Posts by: Rosa Lepore

@John Woodrich what won't matter the tax savings?  So your opinion is that a real estate license for flippers is worth the time and cost?

@Jossalyn Wallace  I read somewhere that as a real estate agent you are held at a higher standard.  I don't understand what that means, do you?

@Bruce Woodruff  yes it makes sense if you are not using a listing agent and your point is you don't need one. 

@Bruce Woodruff I would like to get clarification as to why most people are answering you do not need a license if you are a real estate investor.  Is that for all real estate investing including flips?  Let's say I sell 3 flips a year at $200K each, to sell a $200K house you can end up paying a 4% commission fee and I am being conservative, it's as high as 6%.  For 3 homes per year that is a savings of $24,000.  I don't know much about what the brokerages charge, I am going to assume 1/2 and so that would be a savings of $12K per year.  Am I correct in making the assumption that in this case a real estate license would be worth it?

@Jake Liu

Hi Jake, did you ever end up getting your license?  If so, are you happy with that decision?

@Bruce Runn Hi Bruce, I came across your response because I had the same question.  I am not a GC but I am getting into real estate investing to flip homes.  I thought it would be a great idea to get a real estate license in order to save on commission when selling.  Could you explain your answer in more detail?

I have been asked to go in on a deal as a private lender.  I have met the real estate investor face to face and he has had lots of success in the last 2 years since he started his business (40 doors/10 completed flips/wholesales).  I know nothing about private lending and would like to know more about the process.  This would be for 2 mobile home parks with 8 units and 23 units in each park.  He is whole selling the properties and has his own money plus hard money lenders in the deal.  He would need my loan if he cannot find a buyer in 48 hours.  I don’t have much detail yet but I am assuming I’m funding the full purchase price.  This would not be an equity deal, he would pay points and if loan goes past 48 hours (1-3 months) he would also pay interest.  In this deal, am I the 2nd note?  Am I on the title of the properties as a private lender or is the investor?  Do I get my own lawyer?  Do private lenders have the properties appraised or ask for a report?  I would love a step by step process.  I know there are about a dozen more questions I’m not asking that I should be asking.  What points/interest rates do private lenders usually charge?  My interest is to join this investor as an equity partner after this deal, because I believe in his capabilities.  But I also want to make sure that my investment as a private lender is protected.

@Michael Henry love that idea.  Thank you!

@Evan Polaski

So what I’m thinking is best case scenario is to purchase the house and pay someone to do the work. The only reason I was willing to partner is to share the burden of finding a house and also figuring out more or less how much we needed to spend to renovate and sell. So basically I needed the expertise. My husband is also very knowledgeable in the field so in essence we could always just hire the subcontractors ourselves.

Any tips for first time flippers? Are you flipping in this market?

So what I’m thinking is best case scenario is to purchase the house and pay someone to do the work.  The only reason I was willing to partner is to share the burden of finding a house and also figuring out more or less how much we needed to spend to renovate and sell.  So basically I needed the expertise.  My husband is also very knowledgeable in the field so in essence we could always just hire the subcontractors ourselves.  

Any tips for first time flippers?  Are you flipping in this market?