In recent years we have witnessed an abundance of wholesalers in the real estate world who put properties under contract and then assign that contract to an end buyer for an assignment fee.

My fees are about $300 per year for two accounts.

The city recently increase our fee's from $50.00 per year to $85.00 per year and now we are required to get yearly inspections.

That, along with the attorney fees to change the zoning, and you could be looking at a good outlay of cash.If I were you, I would start with some SFHs, maybe some wholesaling.Good luck man, looks like you are doing good if you are 20 and already thinking about getting into RE.

The finder's fees you'll pay your bird dogs for bringing deals to you are more than offset by the value - and the wealth - they'll generate for you.

If I were to use a seller's agent on the 2nd property I mentioned, using the following numbers: $130,000 x 3.4% seller commission= $4,420 fee. $12,000 profit- $4,420 fee would still leave me a little profit.

Matthew,Here's an assessment using your most optimistic values, and my optimistic expense=40% rule of thumb.Buy: $92,500Rehab: $7,500Loan: $103,000 (includes orig fee and closing costs)Payment: $685.26 (7%, 30 year)Rent: $1200Expenses: $480NOI: $720Cash flow: $34.74Thats pretty thin, especially in light of all those assumptions.When you say the garage is enclosed, do you mean its been converted to a family room or bedroom?

So, whether or not you have an LLC is irrelevant for the tax questions.In either case, you'll need a partnership return, then each of the partners will move their parts of the profits or losses to their personal returns.IIRC, CA charges an $800/year franchise fee for LLCs.I'd be DANG SURE I had a detailed, written document describing how the partnership would work before I did any deal with partners.

http://www.prudentialelliman.com/MainSite/Guide/NYCClosingCosts.aspxYou will not get hit with all these closing cost,just a rough idea.The Title Closer fee should be paid by the sellerGL..

I currently have a home under option contract for 2 months. I have it under option for 212K and marketing it for sale at 220K. I know it's not a big deal, but I'm just looking to get my first deal done.

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