I'm an at-home mom desperately DETERMINED to make life better for my family thru REI, so we can ENJOY life along the way, not just living paycheck to paycheck. I signed up with the coaching thru Dean's Success Academy and they're VERY helpful. My goal is to earn the '5 Deal Money Back Guarantee' in this next year. I'm doing this part-time with twin toddlers in tow. I'm focusing on 'Assignments,' as I have no money to start my investing. I put Ads on Craigslist and in American Classifieds looking for investors-buyers-flippers, and ONE guy has responded. He's a flipper with a cash buyer, so hopefully I can find him my 1st deal.
I live in Southwest Colorado, and there are NOT houses for $30-80K (NO Bull Matt L!), the lowest asking price on the MLS has been $150K for a true 'fixer-upper' with foundation issues, 2-3 bd/1-2 ba, in town (criteria of my 1 Buyer). I put in an offer for $100K, but it just closed for the asking price. The average houses sell for $300-$400K and 10-15% off the FMV. I've looked at over 15 houses in the last 3 weeks, and my low 50% off offers are laughed at. I have an agent who is doing his best working for me, but I think the only way I'll find a house less than 35% off FMV will be with Pre-foreclosures, as my coach with DG's Academy recommended. Am I on the right track?
I visited with an accountant Saturday to be sure I have my business set up correctly, he recommended an LLC (which I filed for) and set up as a S-Corp for tax purposes, which costs $850/annually plus to file the tax returns. GAG! It seems like I'm just paying money OUT, with no money coming IN yet. Frustrating. That visit with the accountant cost $175. He also said that the Academy Fees won't be deductable, what? I will call my PMI coaches on that one. He was VERY skeptical about my 'Investing' business, "What EXACTLY will I be doing? How do I think that "I" will get the houses cheaper than another buyer? So I won't actually BUY the house, just ASSIGN it to a buyer? I better consult with an attorney to be sure I can DO that..." blah-blah-blah... So negative...it's frustrating to hear. One RE Agent I interviewed told me to take the RE course and become a Realtor, then go work for her, I'd make more money that way. Riiiiggghhht, and whose pocket was SHE concerned about lining? I don't use her as an agent.
I'm trying to build my Buyers List, but only have ONE investor so far. I put an AD in craigslist and Amer Classifieds, but my investor is the only one who responded to both Ads. 1) Ad craigslist, I put in my email address, 2) Ad Amer Classifieds, I put in my phone number, and my investor called me, ha! I think we're the only TWO investors in town. I'm going to attend our 1st REI Club meeting, which is suppose to be this month November. YES! Hopefully some leads from there.
Questions: Building your TEAM, do you line up a Handy Man to do your estimated repair costs? I can do the cosmetic repair estimates, but the structural or more in depth, I don't know. Do I have to hire an Attorney, they're soooooo expensive, but Matt Larson said that I NEED one if I'm doing 'Assignments of Contracts' (which I am, NO MONEY here)? What percentage commission/fee do you pay your Agent for helping you on FSBO's and Pre-foreclosures, foreclosures? REA's get their realtor commission on MLS listed houses, but what about the others? What price do I figure for my 'Finders/Assignment Fee?' Is that price figured from the OFFER price or from the FMV price?
I'm overwhelmed with it all. The Tax Club seems like a great way to go for the business set up & taxes, but again, another $5,000 intial fee & $50/month is money I don't want to ADD to my credit card BEFORE I at least make my 1st deal. HHHEEELLPPP... I've filed for my LLC, and what is the next step I MUST take to protect myself and my family and also to set up my business wisely BEFORE my 1st deal?? Thank you for any suggestions!
Making it happen!
Sunrise Solutions, LLC