Zachary Prince If you're feeling unsure on your first deal (I know I was, and have only done 2 so far; 4 total buy/re-sell transactions) you might call around to different closing companies in the area that you're planning to work in. So far, I've done deals in two different states and in both cases I kept calling local title companies and explained/asked:
I was planning to do a small private land purchase (no realtors involved)What would be the minimum costs, understanding that my purchase price is probably around the minimum cost for a title insurance policy?Are there any other costs that could arise, depending on the circumstances of a particular sale? (I'd ask this one a few times, using different words, just to be sure they've told you everything)Do they have any standard/template documents that you could use for this transaction, which are known to be compliant with all laws in that location?
In my admittedly very limited experience, I found that both title companies I ultimately worked with, in two different states, were perfectly happy to supply documents, and probably would have walked me through filling out the contract if I asked. In both cases, I called probably 3 to 5 different title companies in that area before I chose the one I ultimately worked with, and I made that choice based in part on how receptive they seemed to be to walking a novice through the process.
The other thing that I would say, having been where you are now, very recently, is to just focus on one step at a time, and don't get overwhelmed/paralyzed into non-action by trying to understand all details on 100% of the process before you get started. Focus on getting your list and your mailer out. Then, when someone responds, focus on how you deal with talking with and making an offer to a prospective seller. Then, when you have some kind of verbal or non-binding written agreement on a deal, focus on getting a Purchase and Sale Agreement in place (again, some title companies have offered to provide me with this, if I wanted). Then how do I close a deal in state/location X, etc.
Other than having a good idea of the value, and a general idea how I planned to go about marketing a property for sale, I wouldn't worry too much about what the details of the selling process will be when I'm in the middle of trying to do my first purchase.
I agree with Seth, it’s not super important but mine is sort of a hybrid. My “buying” side has no formal entity, it’s just a Gmail and URL that are similar. Once they agree to sell, I send the Purchase Agreement with my LLC as the Buyer and hold it in that name and sell it in that name. Nothing fancy.
u technically need to be "employed" by your LLC. It's one option, but not a requirement that I'm aware of. A lot of LLC owners will just take distributions from their LLC when they want to pay themselves (i.e. - the LLC writes a check to the owner, and the owner deposits it into their bank account and they pay taxes on it along the way - then they are free to spend the money on the personal side).Granted, once you start making a lot of money, this may not be the best structure to use long-term because you'll be exposed to a higher tax liability... but just b
Means multiple people own a certain percentage of the property. All must sell their portion otherwise you just own that percentage and if it’s not income producing, you won’t make money and can only sell your percentage. Move on unless you can get all portions.
Don Yost it’s a good question. Something many of us have to wrestle with, I think. I don’t know if I have the answer for your situation, but I do know that quitting things is a perfectly normal part of every successful person’s journey. Everyone has to figure out what they fit into, and sometimes we need to call a spade a spade. At some point, continuing to hammer away at things that aren’t working is just idiocy... the question is, where is that line?
Perhaps it’s a question of how many different approaches you’ve tried in making this work (have you truly exhausted all the options?), how much fuel (money, energy, enthusiasm) you have left in the tank, and how much you really enjoy the house wholesaling business in the first place.
I’ve found I can overcome A LOT of difficulties if I really love the fundamentals of what I’m doing... but if I hardly even enjoy the business in the first place, I shouldn’t expect to last very long.
I've successfully used Zelle (free for many banks) for the transfer of funds when buying (after I get the deed), and for selling (e-record or send them the deed after the funds arrive in my account). It's as fast as ACH, and actually safer since you're not even sharing your account#.
1. I do recommend creating a company email, it's just easier to track messages and to keep your personal emails separate. I'm currently using a gmail account, and I think it's fine, but IMO there's an extra level of professionalism with a company email. 2. I do recommend creating a company bank account. Originally I used my personal, but it got way too confusing (and time consuming), to manage and keep track of everything. All buying and selling funds do come in and out of that account.
No worries of these first questions! We're all still learning and I think it's great to have these discussions. I may have things set up inefficiently as well, so I like to browse these groups and see what's working for others.
Bill Tanner, do you know if the state this property is in might have favorable laws for getting access, by right, to landlocked properties? You can search this forum for the phrase "easement by necessity", if I recall correctly, and should turn up a thread or two where this was discussed.
Off the bat, it's my understanding that both Florida and Arizona, at least, will grant this type of easement, by right. You have to pay an attorney to pursue it with the county though. Other states only allow this type of easement under certain specific circumstances, though.
If you find some posts that Jaren Barnes made on this topic, on this forum, he mentioned his costs he's encountered for this in FL. Definitely not something that would work for a very low-value property, but since you mentioned 100+ acres, I thought I'd bring it up.
Also, have you asked the seller about the access? Not saying you can take whatever they tell you as the gospel truth, by any means, but there's always the possibility there could be some circumstances that wouldn't be apparent on GIS, which you could verify prior to closing.
Dale Stolman I am in Texas , fortunately I haven’t had to deal with this but it is clearly written in my agreement saying if in default after 60 days I will take the property back and do as I wish with it.