All Forum Posts by: Yoann Dorat

@Jonathan Castillo It's not mandatory to have an LLC to wholesale however, I'd recommend setting one up in the future for liability protection. For this one deal, as long as you plan on paying your taxes you're good, you can ask the title company to cut you a check and deposit it on your personal account.

@Mitchell Mazotti I like your Mindset about getting around like-minded individuals and elevate your circle, it's the only way to grow. 

My team always go to a seller appointment with 3 offers: 
- A cash offer (usually 50 to 60% ARV)

- A seller financing or sub to offer (up to retail)

- A listing agreement (up to retail) 

We ask questions, build rapport, and depending on the needs of the seller, he'll pick whatever option is the best fit. 

@Lue Blackwell the best and safest way to be compensated is to be licensed. You can play in the grey area but at your own risk.

In my opinion it's not really worth the risk as it's fairly easy and cheap to get licensed

@Kaden Warren

Rule #1: BP is not the best place to ask for advice on wholesaling 

Rule #2: Don't buy an expensive course/training program most of the information you need to start is available for free on youtube and podcasts, type "wholesaling 101" and watch as many videos as you can, you can also read "flip by Nick Ruiz" it's a little outdated but it's still a good book for getting started.

Rule #3: Don't get analysis paralysis, the best way to learn is to jump right into it. Wholesaling is a very simple business all you need to succeed is consistent action over a long period of time. 

Good luck and I hope you'll feel better soon. 

@Marcella Hoard I love this topic! 

I built my career in SFH, and my company is 100% focused on this asset class as we wholesale and flip hundreds of those every year, but for my personal rental portfolio, I rather own Multifamily buildings. Having owned a property management company in the past, I've seen firsthand the difference between both asset classes, here are the main reasons why I rather buy Multifamily:

Less maintenance, there are not that many things that can break in an apartment compared to a house, or at least the big expense items are spread out by X number of units (for example a roof to replace). Since there are fewer things to break the cost for a "turn" after an eviction is also way lower than an SFH.

Vacancy, with a single-family, if your only tenant stops paying you can go in the red pretty fast, even when there's no income coming in, the operating expenses are still here and if the situation stagnates longer than expected (ex COVID) there might be a huge out of pocket cost. This doesn't happen with multifamily, even at 50% occupancy (or collection), you generate enough income to cover your expenses (assuming an expense ratio of 40%). 

Easier to predict your exit price, The SFH valuations are based on market trends, Multifamily are underwritten based on performance if you're able to reduce your expenses and/or increase your income, and know what cap rate Investors are looking for in your area... you can accurately predict your upside.

Easier and faster to scale, buying rehabbing and managing 500 SFH is a hell of a lot more work than 500 apartments, with larger buildings you can have a management team on-site and benefit from economy of scale.

Better terms on financing, it's tough to get in but once you build a strong balance sheet you can have access to great terms with interest-only loans and most of them are non-recourse. 

Less competition, everybody can get involved in SFH which drags the prices up, the barrier of entry makes Multifamily more of a niche market, I personally like to stay in the 30-90 units range, too big for small investors and too small for institutionals.

I still own a portfolio of SFH for diversification but down the road, I'll probably move this capital to Multifamily.

Hi @Izzy Carson If you're just looking to set up a simple LLC to hold on to your rentals, I wouldn't hire an attorney. Go to LegalZoom or Bizfilling, you're going to save a lot of money.
Now if you need something more sophisticated because you have several partners or very specific tax concerns, then yes go with an attorney. 

@Carmella Lombardi Don't overthink it, it really comes down to having a nice conversation with the homeowner, try to identify the pain points (if any), and find a way to solve it. Even if they're not motivated to sell yet keep following up every 30 days, consistency always wins ;) 

Also, a small trick: Call 2 times in a row (people rarely pick up on the 1st call), drop a voicemail each time, and send a text message after you hang up, the more "touch" on the lead the more chance to get a callback. 

@Trey Sutliff you're absolutely right, I would also add that areas with lower Cash on Cash returns have better appreciation over time, while higher yield areas usually stagnate. 
It all comes down to your risk tolerance and if you're looking for cash flow or appreciation. 

@Cory Berndt send me a DM I can introduce you to a few local wholesalers. 

@Shannon V. I've done several wholesale deals in Ohio and I never had the assignee sign the original PA. The seller doesn't need to sign the assignment of PA either. Just bring both contracts to your title company or attorney and they'll take care of the rest. If you need a referral for a wholesaler-friendly title company hit me up.