All Forum Posts by: Account Closed

@Patricia Steiner thanks Patricia for the detailed response. Approx how much are those fees?

@Ken Calvin Both properties said about 15,000 in profit and I went about seven grand above on rehab on both. 212 loans is a continuous disaster to deal with. Poor account servicing and not very customer focused.

I plan to get my real estate license NOT to become a realtor, but to aid me in writing multiple offers to buy properties to flip. Anyone have experience in Florida doing this? Do you have to sign on with a broker just to buy properties?

I bought 2 homes from NetWorth Realty, one in Brandon & Plant City and rehab budgets for both went thousands and thousands more on a medium sized block home. The contractor that used to do THEIR estimates and the one they recommend to my wife and I didn’t complete the job and the homes could not pass inspection. Both homes came out to be about 18-20% over their "estimate" with the licensed general contractor.

Obviously they market to the novice investors with calculated ARV's and estimated rehabs built in. But because they require you to use 212 loans within the first 48 hours you typically have to move fast.

This is not some fly by night wholesaler.  They have built a national reputation. Here's the thing-  Don’t trust their non-stop marketing emails. Your rehab budgets will almost certainly go over, sometimes by the thousands and sometimes by the TENS of thousands.  Feel free to PM for additional details. Be very very careful when dealing with this company.

So I have a partner that is willing to put up a large amount of down payment on a hard money loan so we can flip a house. I will be doing all the work under my own LLC and physically running the rehab, my partner is solely providing the capital.

How do you recommend splitting the profit? What about tax applications?

Excited to do my first JV deal. Thanks!

@Alex Kamunyo congrats! What a beautiful house!!

Question- Because of capital gains taxes, how did you and your partners split the profits?

@Christopher Brainard yes, I’ll use this loss as tuition for rest of my years in the business. We are attempting to settle it. I’m still perplexed why this large legal group is convinced they can attached deadlines based on good faith after all this- Obviously they want me to hire them, but is there any merit to this strategy?

@Salvador Jimenez you make a very valid point to get an architect involved prior to giving it to a GC

@Christopher Brainard thanks for the reply. Option 1 - It’s the city of Tampa, and because they submitted two sketches and it was denied over a 10 week period because of simple issues like they forgot to include a window in the plan, the attorney seems to think they send a demand letter and can then attach deadlines based on incompetence. Option 2 - A different attorney thinks to go a more mellow route and send a legal notice stating that the contractor can begin and will do exactly the $14,700 worth of work stated in the agreement (they itemized it on their agreement) on their own timeline - for example, complete demo, rough in piping and replace A/C and remove walls —- and then we are simply going to terminate the agreement.

@Christopher Brainard thanks for the reply. Option 1 - It’s the city of Tampa, and because they submitted two sketches and it was denied over a 10 week period because of simple issues like they forgot to include a window in the plan, the attorney seems to think they send a demand letter and can then attach deadlines based on incompetence. Option 2 - A different attorney thinks to go a more mellow route and send a legal notice stating that the contractor can begin and will do exactly the $14,700 worth of work stated in the agreement (they itemized it on their agreement) on their own timeline - for example, complete demo, rough in piping and replace A/C and remove walls —- and then we are simply going to terminate the agreement.