All Forum Posts by: Chris Piper

@Adam Jacobs If you're offer is accepted, maybe start getting ready for any repairs that your property will need. The sooner those are finished, the sooner you can rent it out. Obviously, you can't start them until you close, but determine what needs to be done, get estimates if the realtor will let you into the property, etc. Also, start getting things ready for when you start looking for a renter(unless you already have one in place). Figure out how you will verify the renter's info, if you'll do it yourself, or pay a company to check people out for you. Decide how will you market the property to prospective renters also. Good luck.

Check out the link below . It is specifically for the State of Illinois, but it will give you the general idea of what a land trust is, how they function, and what the benefits are. If you want detailed information, I have a step-by-step training that also will show you how to set them up in the form of PDF's. Let me know and I can email them to you.

http://www.idfpr.com/Banks/CONSUMER/Tips/TRUSTS.ASP

@Hector Trevino Here are the locations that allow filling a Series LLC. All states recognize them also. You would need to check each state/city/country(s) rules to make sure their laws would be beneficial to you.

• Delaware
• District of Columbia
• Illinois
• Iowa
• Kansas
• Minnesota
• Nevada
• North Dakota
• Oklahoma
• Tennessee
• Texas
• Utah
• Wisconsin
• Puerto Rico

@Hector Trevino At the end of this reply is a link explaining all about what a Series LLC is, and how it is beneficial. The Series LLC has been around for 17 years, so I would not necessarily agree with Justin when he said they are very new. I do agree that compared to other entities, they are very new. However, having been around for 17 years, I'm sure there have been plenty of legal issues that have come up and set precedent for how well they legally protect your business.

http://legalwiz.com/what-is-a-series-limited-liability-company/

@Hector Trevino You may want to do some research and file for a Series LLC. Only 1 filing for multiple businesses within the corporation, and each business is under the umbrella of the LLC, but completely separate. That means if you get sued on a flip for your flip portion of the LLC, that the buy and hold side will not be liable for any damages. Delaware offers them, and I think 11 other states including Texas, Tennessee, and Nevada.

@Mark McQuiston It's not necessary at all for the property to be rented out when making an offer. It is a nice bonus, especially if you will be wholesaling it, but definitiely not a requirement.

Probably an LLC for the buy and holds and a separate LLC for the flips. Put each property in a land trust. Then you just change ownership in each property. Much more private way to do business.

I'm not doing that, but I know a lot of people who use bird dogs pay $5-$10 per house, whether they buy it or not. Obviously making a phone call is less work than driving around, get info, and taking pictures. I would say less than $5-$10 per, but it can be whatever you think is fair. It depends on how many calls per day really. I would say $0.50-$1.00 per call would be reasonable, depending on how much you can afford, and based on how the results are from the phone calls he makes.

@Scott Avidon If the aesthetics are odd(weird layout or something), there is major highway construction coming, they owe $70K, there are $88K in liens, and it needs to be rehabbed with loose ARV's coming in at $245K, there is not much room for profit, and a lot of negatives.

Let's say your ARV is off by 10% since the comps are not exactly right. That means that the ARV is $220K. So $220K minus $70K balance, minus $88K in liens, minus say $20K for rehab leaves $29K after closing costs. Now if you are trying to rehab and sell to an owner occupant, there will be less than $29K left after holding costs and insurance. If you are trying to wholesale this property, then it is not a good deal. You need to sell at $70% of the ARV. If the ARV is $220 as I said before, then just with the balance and the liens you are already over the 70% mark.

Either way if there are major highway plans, it will be difficult to sell whether you are wholesaling or rehabbing. You could always keep an eye on it and wait for it to be foreclosed on and try to get at it at the tax sale or from the bank when it becomes an REO.

@Jason Fraser Most, if not all county sites only show the assessed value which means nothing as far as comps go. That is just the value the county puts on property for tax purposes. You should always have your realtor pull comps for you, unless you have access to any websites that pull comps like sitex.com.