Wholesaling Expenses - Posted by ChrisB

Real Estate Investing
1

Posted by ChrisB on May 09, 2006 at 12:46:21:

As usual, thanks for your advice. One more question, I don’t have any relationship with any real estate lawyer right now that I am on my own. Any advice on how to find one, how much do they usually charge.

Thanks again.
ChrisB

2

Wholesaling Expenses - Posted by ChrisB

Posted by ChrisB on May 08, 2006 at 17:57:53:

Hello:

At first, a group of friends wanted to put some money in and go into rentals but that didn’t push through (Again, thanks to Clint for his excellent advice).

Now that I am on my own, I plan to do some wholesale properties. From this is site, I read the articles and got a hold of the forms. However, there is just some expenses not discussed.

Please correct me if I am wrong but some expenses are:

  1. Title Search (maybe)
  2. Closing costs
  3. Marketing Costs
  4. Others?

And once you do make a profit, how are you taxed (most likely as income?).

Many Thanks in advance.
ChrisB

3

Re: Wholesaling Expenses - Posted by Clint

Posted by Clint on May 09, 2006 at 06:13:37:

Advice Version 2.0

  1. Advertise via direct mail.
  2. Respond by signing contract with sellers with option to purchase within specified time period.
  3. Fax contract to attorney’s office ( you have one now right?)
  4. Assign contract to Rehabbers…

Title search paid at closing by buyers.
Closing costs shared by buyer and seller
Marketing costs: .28 per postcard, usps.com
Advertising in paper: $500 per month…don’t know what your paper costs…

Taxed as ordinary income, your fees are listed on line 104 of the HUD-1 and you get paid at closing.

Oh yeah, get yourself a GREAT accountant.

Keep track of all miles, keep track of all calls, postage, meals, everything!

Best of luck,

Clint