Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
Hey folks,
Yes, your eyes are not playing tricks on you. I did just say "a new BiggerPockets Podcast." That's right- in a few weeks we'll be launching a SECOND podcast, and this show's format is going to be completely different. More on that later, but in the meantime...
I NEED YOUR QUESTIONS!
So... what is one question that I could personally answer for you on the Podcast?
It could be about getting started investing in real estate, the best way to get a mortgage, the color of my dog's coat... whatever. But real-estate-related questions are probably best!
Go ahead and leave your questions below and I'll choose a handful of them to read on the new show, which will be called The #AskBP Podcast
And ... for extra brownie points, be sure to use the phrase "#AskBP" in your post somewhere! I've got a "Keyword Alert" set for that :)
#AskBP How to buy from a wholeseller. We hear a lot about wholesellers from their side but almost nothing from the perspective of buying from a wholeseller. I have done a couple of those deals and it's quite different from my "normal" MLS purchase. Also, in trying to work with a couple of local wholesellers it's become clear that some people don't have a property under contract before marketing it. What are the questions you should ask a wholeseller about the deal they are offering? Do I need to get my lawyer to review their contract? What are the pitfalls to look out for? etc, etc.
Hi. My question is to find out what all the expenses of flipping a home besides the obvious. What do we own the IRS on the profits? If we put the profits back into another home to flip do we still pay IRS or can we defer payment. Do property taxes kick in as soon as we close on a property? If so, how much? Basically, what are the hidden costs that a flipper may not think about? Thank you. Melissa
Could you walk us through the process you would use if you were about to invest in a brand new area? How would you pick an area? What market factors do you look at? Population? Income? Vacancy Rate? And what resources do you use to find those metrics? I know there are some geographic locations where anything that works numbers-wise might be a good investment, but there is so much competition for good tenants in some areas that buying a "good deal" still may not equal success. I'd like for someone to take an area that isn't "hot" right now and show what they would look for if they were considering investing in that metropolitan area. F
I would really like a pod cast with an accountant that specializes in real estate. Specifically, I would like to know the most tax efficient way to move money between different LLC's, S or C corps, while taking into account asset protection.
Should the tenant pay the LLC that is holding the property or a separate LLC or S corp that is handling property management? If they do pay money to the third party, should that company take a commission and then pass the remaining funds to the holding LLC or should it hold the funds for future investment?
How about repairs, capital improvements and insurance?Should that money come from the holding LLC or from the parent/managing entity?
If the money is best to reside with the LLC that holds the property, and you have several entities, how do you bring all of those funds together to buy another property without "commingling" funds and loosing the asset protection of having separate companies?
I have a question? Where can i get sales and purchase contract fitting to my wants for real estate deals? i.e. i want to be able to assign the purchase contract and i want freedom of liability to purchase after a certain amount of time.....
Just watched a video cast (forgot his name, sorry) about a mans purchase of an 18 unit apartment complex with no money down. The unit was purchased for 1.2 million (I believe). His investors put up $500,000.
Question: When working with investors how does one calculate potential NOI per investor and self? How are investors paid?
Just watched a video cast (forgot his name, sorry) about a mans purchase of an 18 unit apartment complex with no money down. The unit was purchased for 1.2 million (I believe). His investors put up $500,000.
Question: When working with investors how does one calculate potential NOI per investor and self? How are investors paid?
The building has the income. This isn't necessarily profit so you should be careful if you're splitting this cash among the owners.
Due diligence - What does it mean? Make sure the title is clear....how do I do that? What are the things that I'd better be certain about before bidding on a house at auction?
Ditto the question in a previous post about buying from wholesalers.
Similar to previous question about use of retirement funds. How to use them to purchase property with a non-traditional IRA. If you do that, can you still manage the property and receive cash flow from it, or does that have to go into the trust?
Older investors vs. younger investors - should they have different strategies?
Tenant screening for lower end properties (rents of $600-700 per month). Are the standards the same? If they are, will I be able to find renters?
Starting out, what services do I need from a real estate attorney, and what should I expect to pay for that?
Brandon, Thanks for all the hard work. I am learning a ton of stuff and more every day.
I would #askbp for resources on where to look the information up and specific things to look at to determine if a market is worth the risk of my investment.
I have read that some of the things to look for are employment rates. Are employers moving into the area? Vacancy rates. Crime stats. School ratings. A podcast on how to really dig deep into a market would be very helpful. Things like how many rentals are in the market, how many are rented. Avg rent etc. You can find the greatest property every but if the market is going the wrong way...........ok I gotta say it Detroit :)
OK, so, WOW! Another BP podcast?!! As one of your biggest fans, this comes as seriously exciting news!
So my question, as someone entering a market entirely unknown to me, is... how should I define my "farm" area? I hear all the time about how important establishing criteria is, but how do you do that, exactly (or generally, or somewhat...)? Although my target market - Greenville, SC, and surrounding suburbs - is a really small city, there are many distinct neighborhoods in the city and towns in the area and I'm really not sure how I should choose among them...Any thoughts you might have on this would be most appreciated!
As a relative new dude around here you know what I'd like to see?
Take one "hypothetical" deal that was fed via the MLS/Agent or a wholesaler and walk it through an evaluation process.
How do you find comps / determine ARV?
Are you going to put an offer on it prior to inspecting with contingency or try to get in the door before putting an offer on it.
Plug it into one of the BP calculators and use it make a go/no-go determination (you could probably skip the compiling rehab estimates).
How to make the most out of an REI meeting
When setting up my REI business should I start with an attorney or CPA? And how do I get the two of them to come some consensus about what's the best way for me to approach my business?
Why do I see 1000's of posts about direct-mail/outbound maketing but relatively few about inbound/web marketing? Does inbound marketing just not work? Or is it that most RE professionals aren't comfortable with inbound marketing?
Regarding rehabbing a property (flip or rental), how do you decide whether to hire someone to perform work or do it yourself? I have found that sometimes it can be prohibitively expensive to work on my business and not in it.
@Arlen Chou already asked this, but I'd like to second it.
#AskBP
On a recent podcast you talked with an attorney about having your flips and rentals in separate LLCs, and an operating LLC to run the business. I'd like more information on how this works, especially regarding the accounting. Basically everything Arlen asked!
I'm excited for a new podcast series! As much as I love the current BP Podcast, I would definitely like something with a bit more structure and is edited, like This American Life, Invisibilia, RadioLab, and Freakonomics. Where each episode focuses on an in depth look into one topic, with input from various experts from different areas. Just my two cents! I understand the production value for those types of podcasts must be extensive!
Also as newbie to BP, I keep hearing people talk about the importance of having "systems" in place for various processes. It'd be really cool if each episode of your new podcast focused on 1 topic but had various experienced/advanced RE investors describe/lay out their best/optimized/efficient "systems" for that topic.
I think this is a great idea and really practical. My question would be, how willing would you be to accept negative cash flow if the capital appreciation on your property was guaranteed? In a complex where there is a homeowner association and where levies are payable for upkeep of lawns and tennis courts, security, etcera, it is hard to cover loan repayments each month. Yet the demand for comfort and secure is growing, making units in enclosed estates increase in value. Likewise with apartment blocks that offer a swimming pool, gym and doorman, for example.
Does it make sense to have several LLC's. I have 36 units with 6 in one LLC and 30 in the other. I feel like my properties are at risk if something should happen with one of them? What do people do that have many units?
Thanks
I find tons of information on here, but so far it's all been inactionably vague; it spells out useful concepts, but there doesn't seem to be enough information for me to actually get started. A more in-depth review of financing options for newbie REIs would be incredibly valuable!