All Forum Posts by: Shawn Ward

@Ramsin Jacob you should be able to do this no issue. 

@Eric Bellefontaine if the ARV comps say Central Air, put in central air. If they do not have it, then do not do it.

All the best!

sjw

@Christine Kosoff if I were you, I'd offer a set % return on their invested funds. Somewhere between 10-20% Annualized is realistic/attractive. 

This way, you do not have to marry (which is equity/LLC) before you date (set return).

In the future, after this deal, if you guys work together seamlessly, then maybe create a new LLC.

The individual who wants to be paid for their work, they should be paid for the actual project not hourly. Thus, have them quote on individual projects of the home (plumbing, electrical, etc). This should be compared against a contractor's or sub-contractors price.

All the best!

sjw

Congrats @Nurzhan Abenov ! Now get going on your next deal(s)!

sjw

@Jeremiah Belin technically yes. All you would do is sign over the Purchase Contract to them, and then they'll eventually sign it over to an investor. There has to be enough margin to get it done. 

If I were you, I'd pitch it to investors and other wholesalers. 

The key is to make sure the seller doesn't feel you've jerked them around. 

All the best.

sjw

I know 2 really successful women here in LA that are doing very well. I am all for the ladies growing together!

All the best!

sjw

@Joshua D. Many investors do not have enough money to buy an ENTIRE property cash. Thus, they leverage what they do have in order to buy something that financially makes sense. 

OR

The investor may have enough to buy ONE property with their own cash, but that will tie up all of their funds, and they cannot scale / thus make more money. In this scenario, the investors leverages what they have in order to purchase multiple properties, scale and make more money. 

As long as the analysis makes sense, it is always good to leverage your funds to do more or larger deals. 

If you are someone with UNLIMITED FUNDS and can generate all of the income you want or need with your own funds, congrats! But that is not  the majority. 

Even then, many would argue that you can get favorable financing, at say 4%, and if you can generate 9-12% ROI, you are winning with leverage.

sjw

@Gail Yezombek my understanding is that if you've held the home less than 12 months, it's ordinary income. Longer than 12 it's capital gains. 

But make sure to check with an accountant.

All the best!

sjw

@Ken Nyczaj I'd just offer them a credit and have them deal with it. Cash out and leave.

sjw

@Miles Stanley typically when you invest in an early stage company like a startup, you are going to be looking to get in for the long haul...ala 5+ years...so any type of return that is liquid will be really hard to find. 

The startup most likely (unless it is a service business) probably couldnt realistically pay back with dividends or a set % return within a few years, so they'll probably want you to get equity for long term. 

It depends what your priorities are. 

If you think it'll be the next Facebook. then get equity. If you want a good return, invest in a few good ETFs or invest in a few flips from seasoned flippers. 

All the best!

sjw