Tip #1: Use an LLC
Benefits of using an LLC:
-Potential tax advantages (discuss with your CPA, an LLC taxed as S-Corp may reduce your taxes)
We recommend using http://www.valleydocs.net/ paralegal service for LLC creation. They are fast and low cost. ($220 as of 2018)
Tip #2: Form a team around you
Simply put, you won’t be good or an expert at everything. Know your weak spots, and get people on your team who are strong in those areas! For example, if you aren’t great with estimating repairs, get a contractor on your team who is knowledgeable and can help you avoid some costly mistakes.
Tip #3: KNOW the area and wait for the right deal
It is crucial to know the area you are buying in. If it’s an area you aren’t as familiar with, find a realtor or investor who is an expert in that area and get their thoughts. Be patient! If you jump into a deal that doesn’t have enough margin, your potential profits can disappear quickly.
Tip #4: Get your investor discount at title
Every title company offers a discount on investment property transactions. Ask for it, ask the amount, and check your settlement statement to make sure you get this discount. This usually applies to both the escrow fee and the owners title insurance policy. This should save you HUNDREDS of dollars per transaction.
Tip #5: Build a relationship with a private money lender that you trust
Closing your purchase quickly and reliably is critical to your reputation as a quality buyer which will help you get good deals in the future. Having a lender that is reliable and ready to move quickly with you is crucial and can make a huge impact on your success.
Klinkloans offers financing for:
Fix and Flips, Construction loans, Trustee Sales, Rental Houses, Group Homes (Assisted Living Homes), Airbnb/VRBO properties, 1031 Exchange, Bridge Loans, and more!
We would love to be YOUR private money lender. Please call, text, or email us if you want to learn more about real estate investment or private money (hard money) loans. We would love to assist you.
Mike Zins and Jean Klinkhamer
Klinkloans is a private money lender that builds relationships with borrowers and helps them achieve their goals. We do this through fast, friendly, quality service, direct communication with decision makers, and competitive pricing. A long term, reliable relationship with us gives borrower’s peace and enables them to invest time, money, and energy into other projects or other important areas of their lives. We built our lending upon our experience of doing our own fix and flips and would love to assist you with yours.