All Forum Posts by: Sean Walton

Check out podcast 129 with Mindy Jensen this is one of her strategies. It is a great way to build equity and avoid taxes but slow as others have mentioned. An architect developer in San Diego named Jonathan Segal did something similar in addition to his main development business. Started with a modest property fixed it up and included a home office. Every few years sold and took on a bigger project. Eventually ended up with a multi-million dollar house in La Jolla. Good answer to Brandon Turner's Rich Dad question how can I afford this?

Not seeing the situation nor really understanding the situation from your description this is not legal advice: You should have a local structural engineer look at this.   Your second sentence has me very concerned. You say you widened the opening does that mean there used to be a post somewhere along that 12' span and now you are spanning the whole 12' with a shallower beam?

in almost no case is a normal solid wood 4x6 (3 1/2"x 5 1/2" as strong as a solid wood 4x8 (3 1/2"x 7 1/4") maybe if the original beam was a lower grade wood but more likely if the house was built quite a while ago it would be stronger than a newer plantation grown wood beam.  As others have mentioned and LVL, PSL or Glulam might be. 

Hi BJ Henderson your purchase agreement should have some language that gives you permission to list the property on the MLS. If it doesn't have this I would go back to the seller with an addendum. Many believe that by having a contract with the seller you have equitable interest in the property and this give you the right to list on the MLS but many RE brokers have trouble believing this so you may need to interview a few brokers before you find on willing to list it. Make sure it is crystal clear in your contract you are buying the house from the seller and any profit you make is yours. Other things to look out for if your end buyer is getting a loan, the bank will scrutinize the deal much more heavily since you are buying for say 65cents on the dollar and their buyer is paying 100. Your target market even on the MLS are still investors paying cash but by being on the MLS you cast a wider net and may get flippers or out of state landlords looking to get into your market

@Mike Snyder that is above my pay grade but I think the advantage of the S-corp is you can create sub s-corps for each flip or deal. Since the wholesaling is treated as dealer status there isn't a reason to do an LLC but I know just enough to be dangerous. Do your own due diligence

@Vernon L Keene good luck and good for you taking this on.

I'm not a lawyer and this isn't legal advice and should be checked with an attorney in your state but, you mention setting up an LLC which is great for holding properties but you probably want to set up an S-corp for flipping and wholesaling and don't mix them or you will lose the passive tax status of your buy and holds in your LLC.

@Katrina Razavi My friend from school has done these are her firm in the past. 

website. http://www.rodgersarchitecture.com/RA/HOME.html

I'll PM you her email address

@Assi S. one thing I would add to @Brent Hill 's response: I agree 100% they are not going to do the work for you and you do need to be self motivated although I have asked my acountability coach to check my goals sheets every week and make sure I'm not slacking off. If you have a deal or something you think can be a deal there is a bring your deal class where they help analyze it and sometimes it is too skinny for a traditional whotetail exit but they will help you structure it to still be profitable as a lease option or coach you in going back to the seller and saying this doesn't work for me as a cash offer but if you are willing to seller finance a portion I can give you your asking price.

Make sure to have a contingency fund. A lot of unexpected costs come up when building ground up.

Make sure the new construction cost is less than a comparable existing property. 

Ground up has a lot of fees you don't expect when you have been flipping. School fees, utility hookup fees, sometimes traffic impact studies if it is a large project. Your architect should be able to guide you through a lot of these.

Good luck and keep us posted.

If you are in a hot market bringing a buyer is not really adding much value. If you found the property listed somewhere I'm sure many cash buyers have as well. "Wholesalers" who are marketing someone else's contract tend to get a bad name. My 2cents is to either reach out to the person with the contact and see if you can do things to help their business in exchange for guidance and education. Drive for dollars, cold call, go down to the courthouse and talk to owners evicting their tenants (tired landlords) although if you are doing all that stuff and educate yourself on BP maybe you don't need to work for someone else?

I would put your rules in the house rules within your Airbnb listing. You could print it out for each guest and have them initial it if you want to make sure they read it