All Forum Posts by: David Begley

Not an interior decorator but a real estate agent that also has staging business. I think it makes a big difference in bringing traffic in from the MLS.

 Michael, I met @Tom Yung through BP Forum discussions and through BP Marketplace and he was patient in educating me to the nuances of Tax Deed Foreclosures and we were both looking for JV real estate opportunities in Atlanta, for two different reasons. I was/am a green investor and was looking for someone to partner with to both share the risk and tutor me along the way. Tom lives in Canada and needed a cash investor partner that would be boots on the ground in rehabbing the Atlanta property acquired through a tax lien foreclosure. We subsequently formed a second JV/LLC to develop a spec home in the Kirkwood neighborhood on an infill lot picked up in a tax lien foreclosure. Stay tuned for that effort.

@Les Jean-Pierre I believe the original tax delinquency to be between $10K & $15K, but investors bid up the property at auction to about $61K.  It also takes between $3,500 to $7,500 in legal and administrative fees to go through the barment and quiet title processes required to obtain marketable title.  Or, you can do nothing and wait four years......  

 Thank you. 

@Jasen Bankson @Art Pulphus @Jeff Hunt  Thanks for the positive feedback guys! 

 I have my license, and see several benefits.  The biggest benefit is access to the state and/or National Multiple Listing Services.   To search for possible rehab opportunities,  I can simply set the specific parameters for the properties I'm interested in acquiring (e.g. neighborhoods, price ranges, school districts, etc) and add keywords like "as-is", "fixer-upper", "handymans special" etc and have a report every morning with these types of properties as they are listed.  Second big benefit is listing your flipped properties.  For example, the house I just rehabbed & listed is under contract at $245K.  Even if I had expense overruns and my net profit wasn't as planned, I will still earn $7,350 as Listing Agent.  Many other reasons, but those are my two primary motivators. 

@Pyrrha Rivers  Thank you, and yes, @Tom Yung is the perfect partner for a JV - extremely knowledgeable and patient with his Jr. partner!

Also, for those that post Forum questions regarding "how to structure a JV", I'll let you know how we handled it - not saying the best or only way, but this arrangement worked for us. We formed a Georgia LLC (the two members are our "parent" LLCs) that outlined each of our responsibilities, contributions, splits, etc in the Operating Agreement and also transferred the property to the LLC ownership. The Operating Agreement included a Dissolution Statement stating that the LLC would be dissolved and assets/liabilities settled upon the sale of the property. Further, we opened a bank account in the LLC name (have to procure an EIN), made equal payments into the account and paid all rehab and carry costs through this account.

@John Moore Thank you, and I'll provide an update after we close.

@Jay Hinrichs Thanks Jay, hopefully we can connect the next time you are in the southeast.  

@Scott Young  The rehab began October 1 and we had a target December 1 completion date that turned into a mid-January due to a few unforeseen delays - permitting and inspections primarily and a few that I should've foreseen and didn't, but hopefully learned some lessons.  Even though the house is only about 1,600SF, the demo took longer than anticipated because of the extent of the vandalism.  We went through 6 of the 40 cubic yard dumpsters and also had to replace the roof, which wasn't in the original budget.   

@Neha Wadhwani @Yinan Q. @Brent Fleeman  Thank you, this one was challenging!

@Vincent Lewis Thanks!  Of course, now I think I underpriced the listing.... , lol