All Forum Posts by: Steve Trang

@Antonio Jimenez, I'm incredibly jealous that you're starting so early! The great thing about starting so early is that you can buy a fourplex with an FHA mortgage. You can put 3.5% down, live in one unit, and rent out the other 3 units. In the Phoenix market, you're looking between 200k and 280k. With down payment assistance, you could qualify today. You may want to save up a little more, though, so that you'll have a rainy day fund.

@Josh Knutson, the best thing you can do is connect with wholesalers and flippers in your area. You'll find that most would be happy to help you get your first few deals under your built, because you'll be helping them find properties, too.

I'm ramping up my business again. I used to dominate PPC, but PPC has gotten a little out of hand in my market these days. I'm fortunate that I've been able to interview the top players in the Phoenix market. You can hear how they're wholesaling 20-50 properties on the link below.

The only reason to borrow through the LLC is to make sure the debt isn't in your name. If you're guaranteeing it anyway, I'd definitely buy in your name with a 30 year mortgage then deed it over to your LLC.

What is the alternative? Is it wholesale versus flip? Wholesale versus buy and hold? Wholesale versus getting a real estate license?

Power of cash is certainty and speed. If seller needs money in 7 days, cash is king. If seller is not sufficiently motivated, cash is irrelevant.

Hi Tennita,

In our market, the big flippers will pay 80% of ARV minus repairs. So what you'll need to do is find out who the big flippers are. Find their criteria, then calculate your profit. For example, for me to wholesale it to a flipper here, I'd have to offer 80% of ARV - rehab - my wholesale fee.

Good luck!

I use Joshua Berg with Blue Lion Insurance. He brokers with Foremost.

You're getting reamed with junk fees in section C. The transfer tax is probably not calculated in what you're seeing other people quote. I know that they don't exist in AZ.

Are they allowing you to avoid guaranteeing the loan? Are you going through a commercial bank?

Most people I hear will buy in their name then deed it over to the LLC. Are you trying to avoid that?

Tom, from what I understand, there is no written minimum. However, the purpose of a 1031 is for holding rental properties. So if you do less than six months, you'll probably get in trouble with the IRS. Traditional wisdom is 1 year minimum. Good luck!