All Forum Posts by: Sam Alomari

Hi @Nauman Shah ,

There is nothing wrong with using your first name in your business name, but I personally don't like the "empire" part! I mean come on, you just started a business and you want to give it that name?

Also, did you check with the state if they have specific rules for a business name?

Did you close on any deals? don't get hung up on the business name, you can create a business card without a business name, just your name, contact information and what you do (wholesaler, investor, property manager,etc..). Focus on making deals, not the name of your business. My 2 cents.

Best,

Sam

Hi @Michael James Parsons 

I'm not a wholesaler but here is my personal input:

I don't think you need to get a job in real estate for few years before you start. I suggest you enrich your experience by connecting with wholesalers and real estate investors. Attending meetup groups, read books, listen to many podcasts, and you'll be familiar with the business. It isn't rocket science!

I have been told recently by a very respected investor/flipper that the money follows the deal. If you have a great deal, you can sell it within hours! So I would focus on finding great deals and make sure you can make a good margin and still manage to make your investors happy! 

In any business, you are in the lead generation business. That's the most important single task that you should focus on. If you want to become a successful wholesaler, then you need to find discounted properties, and to find discounted properties, you need to talk to a many many people (leads), that will be very daunting, so think about automating your lead generation process.

Once you have an automated process, now you have a steady flow of leads pouring every day, you might need to set up automated phone system and ask them to leave a message. The point is,  you better score/rank them, talk to your qualified leads only. If you apply the 80/20 rule, 80% of your deals will come from 20% of your leads. Focus on finding who belongs to the 20% and call that seller.

Remember, you don't want to waste too much of your precious time on a call with a non-motivated seller.

Regarding setting up an LLC, I would set up an LLC only when I secure the first deal, it takes 10 minutes to setup and another 10 minutes to apply for EIN.

Like @Drew Byrd said, you won't receive tax benefits for operating under a single member LLC. You will be taxed as Sole Properioter so it's even worse than being taxed as W2 employe because your LLC will be responsible for the employer's portion of the payroll tax. However, you can deduct business expenses as a Sole Propertior/single member LLC but you can not do that as a W2 employee.

Despite the no tax advantage for single-member LLC, you still need it for at least 3 reasons:

1- Asset Protection, you will protect your personal assets (only if you treat LLC as a business). I heard a bad story about LLC veil pierced because the owner mixed personal with business expenses or treated personal expenses as business expenses. Just google (LLC Veil Piercing) for more information about the topic.

2- Separate business from personal expenses (separate bank account). Your CPA will be happy, and it's easier to track business profit/loss/expenses, etc.

3- You look professional and legit.

You don't need an office or paid employees to become a successful wholesaler. You need to be patient and good with people (buyers and sellers). I know very successful one-man show wholesalers and they are crushing it.

Best,

Sam

Hi @Andy Rumple

Actually, I asked Bill before I post on BP. His main guys are booked 2 weeks out. He shared a couple of contacts but he warned me about their high price.

@Caroline Hamza recommended thumbtack.com and I was able to get someone to take a look and provide a free estimate within a couple of hours!  Thanks Caroline.

I guess thumbtack could be a great resource for emergencies, but I still need a "go to" guy whenever I have plumbing issues.

Hello,

I'm an out-of-state investor and I'm looking for a plumber to fix some issues in one of my rentals. I know you'll probably think I'm crazy because I manage my rental from 600 miles away, but this is a temporary situation.

A lot of plumbers are tied up now but I believe a good handyman can get the job done (tub drainage and replacing a broken kitchen faucet). If you know someone reliable that can get the job done for a reasonable price, please PM me.

Thanks!

That is not a good idea. You are a landlord and are not supposed to take away people's rights!

What makes you think it's a good idea? If a person owns a gun legally, they have been checked already and they will be responsible gun owners since they went through the process and did the right thing. If you are worried about illegal gun owners, they won't disclose that to you and they won't abide by your rules anyway.

Woow, my rate is 3.82% on a personal heloc. I guess your rate is high because it's for an LLC

Hi Dan, thanks for sharing this. Jist out of curiosity, what was the interest rate?

Hi Rod, I checked their website, I don't think they lend on SFH. I'll contact glthem for more details.

@Marty Johnston Thanks!

@Kelly Conrad Selling is one option. I can stick with the repayment period for 20 years or I can refinance my HELOC and keep paying interest only for another 10 years