All Forum Posts by: Ted Lanzaro

Separate cards for sure. But, your real estate licenses most likely makes it mandatory that you tell everyone you deal with i.e. Potential sellers that you are a licensed realtor. Check with your broker about this to be sure.

These houses are typically few and far between. The experience is that you look at 100, make offers on 5-8, to get one. The houses you make this work on are usually to far gone for any conventional lender to mortgage on so regular buyers won't touch them. Having your own marketing and getting off the mls helps too - you want to operate in a competitive vacuum. Hope that helps, Ted

Yes, @Christopher Phillips spreadsheet is exactly what you need to do.  Way to pitch in big time!

I would be a little concerned about anyone claiming to "do it all". That would make him both a licensed plumber and electrician? PM me and I will give you the name of my guy. He was on Flip This House and has done hundreds of rehabs including about 20 of mine. Very solid and good pricing. And he has a team of licensed plumbers, electricians, etc Good luck, Ted

I have several clients doing this. They are using a LLC for the rental ownership of the houses part of the business. They also run a counseling business because they have a lot of these houses. They use an S corp because the counseling part is a business. The only other alternative for the rental portion would be a limited partnership but I think the LLC is a simple and easy way to go. With that being said, a quick chat with your attorney and insurance agent about this is a great idea. Good luck, Ted

Kitty, First annualize all the numbers and divide by 12 to get the monthly. It appears you have annual expenses and monthly income. Then, put the numbers into the evaluation spreadsheet on the bigger pockets site. Run a mortgage amortization so you know the monthly payment for the mortgage. Figure 10% of income for repairs and 10% for vacancy. If it cash flows using those numbers and you get a good cash on cash return, it is a good deal. Review to see if it needs upfront repair work and adjust the 10% figure in the first year accordingly. PM me if you have further questions Good luck, Ted

Call the bank and find out. Write a letter to the trust and find out. You miss every shot you don't take - Wayne Gretzky Take a shot. You never know. Good luck, Ted

In my experience doing rehabs for last 15 years, acquisitions is the most important piece. Why? Because all the money on flips is made when you buy the property at the right price. That being said, there is nothing wrong with having an assistant doing all of the initial legwork - first viewing, pictures, rehab estimates. But, they better know what they are doing. I would start by putting a young realtor on your team under you. I would not want to partner with someone who might not work out. Once you find the right person, then perhaps give them a piece. I did this by having some young realtors who wanted to be investors do acquisitions for me. They found the deals and got paid the part of the commission on both sides. It works out fine as long as you can do enough volume for them to make money. Hope that helps, Ted

Please let me provide an alternate viewpoint from a successful CPA, business owner and investor. Do not concentrate on being frugal. Concentrate on education and providing as much value to others in whatever your chosen field. We live in an information world and to be successful, you need to be an expert at something valuable. Then, you can make a great living way above your expenses, invest your free cash flow but spend generously on yourself and enjoy life. You only live once! Nobody likes frugality and getting a reputation for being frugal or cheap is not a good idea. Plus, you have to have an abundance mentality to create wealth. No offense to Scott but I know what I am telling you is a much better life approach. Good luck! Ted

http://www.exeter1031.com/1031_exchange_related_party_issues.aspx Here is a link about the related party issues for you to check out. Hope that helps! Ted