All Forum Posts by: Scott Michael

Hey everyone,

I'm a newbie investor and I am going to start doing flips. Does anyone have any recommendations on a good real estate cpa and attorney that can help me in setting up my business and on my first deals? Thanks in advance!

Hi AJ, 

Welcome to Bigger Pockets! I am in the same situation and I recommend you read the book Long Distance Real Estate Investing by David Greene. I just read it and it's excellent, it perfectly to the situation of people like you and me.

Good luck!

Hi Joe! I'm an investor in Dana Point, are you going to be hosting any other meetings or workshops?

Hi Andrew,

Are you going to have any more of these meetings?

Thanks everybody for your answers! I decided not to make an offer on this one, it is an out of state market and I just didn't feel comfortable enough yet that the expenses in my analysis were correct. The answers were hugely helpful though and I know how to make an offer for next time, and to engage with a realtor that has a fiduciary duty to me to handle the transaction and offer process.

Hi everyone!

I'm a newbie investor and ready to make an offer on my first deal. I found the property on Trulia and the selling real estate agent said to submit an offer. Is this as simple as sending an email to the effect of "I would like to submit an offer for $XXX,XXX for the property at 123 Main St", or is there a more formal process?

Thanks!

Thanks Kerry!

Bump

Hi Bigger Pockets!

I am reading Brandon's book on Investing in Rental Properties with No and Low Money Down. He gives several examples like the following where an investor gets a private money loan for a term, say 5 years at 8%, and rehabs and sells the property before the 5 years is up. My question is, does Sara have to pay her investor the 8% interest for the entire 5 years even if she sells early, or only for the time she has her investor's money?

Other examples are borring hard money or private money for 12 months at an interest rate, say 10%, then flipping the house in 5 months. Will the investor only pay the 10% for the number of month's they have the private inestor's money, or for the whole term?

Sarah is an investor in the Dallas area who is
primarily interested in small multifamily properties. She is
especially interested in finding properties that have been poorly
run and poorly maintained, acquiring them for a low price,
rehabbing them, and renting them out while she waits for the
market to improve. Sarah finds the perfect property, located near
her home—a garden-style fourplex in a great neighborhood that
needs some new paint, carpet, and better management. She gets
the property under contract for $110,000 and sets out to find
funding.
She discusses the deal with an experienced investor, Wilson,
whom she met online through BiggerPockets.com. Wilson is tired
of dealing with tenants and has been selling off his properties. As
a result, has a sizable chunk of cash in his bank account that he

Sarah to buy and rehab the fourplex, for a five-year term at 8%,
interest only, which comes out to $866.66 per month.
Sarah immediately improves the property and rents out each
unit for $750. After all the expenses, including the loan payment
to Wilson, she clears almost $700 per month in cash flow. She
then holds on to the property for several years, until the market
improves, and then sells the property for $190,000, clearing a
huge profit.

Hi Bigger Pockets Community!

I recently decided that I am going to get into real estate investing and I've been devouring the podcast episodes, I read Rich Dad, Cashflow, and I'm currently reading Brandon's book on investing in real estate with no and low money down.

I have a couple of recurring questions that I haven't found the answers to and I'm hoping that somebody can answer them here, or point me to a resource or place where it has already been discussed.

1) Rich Dad and Cash Flow talk over and over about running things through a business you create. As Rich Dad is short on Specifics, where can I go to get the specifics? What type of professional do I need to help me set this up, would it be a CPA? And how do you find a professional or CPA that has the Rich Dad mindset and who understands what Kiyosaki teaches?

2) Do you actually buy deals through a company you create or buy them as an individual?

3) My brother and I are going to go in on deals together - he has cash, and I have good income. What kind of entity should we form? Also, what kind of agreement is typical in situations where one investor puts up cash and the other does more legwork in finding the deal, or as in my case, provides W-2 income to show the banks?

Thanks everyone, I know that these are a lot of questions and I'm sure they've been discussed before, I just haven't heard this touched on in detail anywhere. Thanks!