Have a question you'd like asked on the BiggerPockets podcast?
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Quote from @Richard F.:
Dear Mod, Please correct the spelling of the topic! I'm just a little OCD about this, every time I open the forum...
Fixed. Autocorrect can't match my lightning fast fingers. Thanks for the catch!
I have one LRT and one STR which are both under our personal names. I'd like to buy another STR in the next year, but I don't know how to get a loan under the name of an LLC. Our STR was bought as a second home so we only had to come up with 10% down. I'd like to do that with the next but not sure if it's likely. Can I form an LLC in North Dakota, but a house in Florida under the LLC all while I live in MD? How do I go about doing that? I've heard it's possible to move an existing home from our personal names to an LLC, but I've also heard that will result in the bank calling the loan. Any guidance is greatly appreciated!!
Hi David! My name is Amanda Stever and while I've been listening to the Bigger Pockets podcast for a while, I recently just joined as a member. I live in Salt Lake City, Utah, and we have a STR ski condo in Park City. I've been a pharmacist for 12+ years, but realized that my W2 job will never really lead to long-term wealth or growth. So, I got my real estate license & have been focusing on educating high-income earners (physicians, pharmacists, dentists) in the ways in which real estate can get them huge tax breaks while earning cash flow and equity. Investment properties in Utah are still expensive ($500k-$2.5 million) compared to other markets in the country, especially if the rentals are located near ski resorts, national parks, etc. However, the annual ROI of many of these is an easy 20%. In your opinion, which would be more advantageous: A couple of lower-priced rentals, or one more expensive investment with a larger ROI in a relatively well-insulated market? Thank you for your time and for all that you do!
Quote from @Alicia Marks:If the real estate company renews the lease for the same old tenant with the same rent, what price should charge the landlord? ( he was charging me one month rent on the first year contract )
Do you have a question you'd like answered by David Greene or another expert on a BiggerPockets podcast? We'd love for you to contribute! You can submit your info here: https://airtable.com/shr2uOqeO...
Have you question video ready to upload when you submit.
You can also post your question below! List your question and a little about your portfolio and location.
We can't wait to bring in the best part of BiggerPockets, you!
Thank you for taking my question! My wife and I are in our mid-40s. My income is a little over 120k/yr. We are debt free. We own a home valued at around $400k. My wife is a Realtor (new this year!). She became a Realtor to help us develop our real estate portfolio as she serves others. (FYI, we max out my 401k contributions & our 403b contributions each year.)
Also, I am decently skilled at home restoration. We've bought and sold fixer-uppers every 2-3 years, renovating them while living in them. (Over 20 years, six homes.) I have all of the tools I'd need! Our goal is to get to 12-15 doors as quickly as possible. We will move to a small central Florida town an hour or so south of Orlando in a few months. We will sell our primary (and only) residence using some of the equity to begin buying doors.
I do not plan to quit my job. I love it. We want to invest in and pay off our portfolio over 12-15 years. We will use cash flow to eliminate debt and not use cash flow for personal income until they are all paid off.
We want our next primary residence to be our last family move. We are TIRED of moving and living in construction zones! Ha! We will use $250k as a down payment on a $400-450k primary residence. We will use the remaining $150k to begin growing our portfolio.
We have an additional $20k cash on hand. We plan to contribute about $30k/year of our current income to help buy doors. I am interested in any combination of RV parks, small trailer parks, multi-family, and single-family homes.
I consider myself a well-educated, fiscally responsible risk taker. I have a plan, but I'd bet yours would be better than mine! What would be your next steps if you were in my shoes?
Ancillary info:
1. We have an LLC and plan to put the properties in a trust for our adult children's future inheritance.
2: I started with nothing! After my father passed from alcohol and drug abuse complications, he triggered debt collectors calling me with aggressively wild threats for a few years! All I inherited was a sullied name! Everything we have results from our drive for excellence in all things!)
I look forward to hearing your thoughts!
I listen to the BP podcast every time I work out! I love it!
Hello my name is Feds I am a teenager who is going to graduate and I been reading books about real estate and investment. And I have question that I don't know the answer to it. I will like to ask if someone could help me answer them
1- Which is better to become a salesperson or a broker?
2-Could someone explain what is the difference between this two?
3- What type of property can a person buy if he is a self employed
4- Do you have to take a loan?
5- How can I assemble a team?
6-can someone one tell me a place were to invest for example a broker?
7-How do you invest in real estate without you selling a house, just giving money to a person who does the work and getting return of investment?
8- what can a teenager do before graduating high school and wants to invest?
9- Does he take real estate license test?
10 - Books that you people recommend please?
11- can someone buy a house with 10,000 dollars?
12- How can you buy a house in a place where every is expensive to buy, for example " California"?
13-Can you use grants or students loans for investments and if you can, what can you do?
14
Hello, This is Paul from Utah. I started my real estate investing journey in 2020 and am now up to 8 doors. All my rentals are in Kansas in a city that David Greene like to pick on as his Midwest scapegoat (although his criticism isn't totally unfounded, a company there did just land an over $1 Billion government contract so I am happy with my city choice). As of now, I have 5 single family homes and 1 triplex. When was getting my most recent landlord insurance policy set up the person helping me mentioned that since I have several properties I might be getting to the point where getting a commercial insurance policy to cover all my rentals, rather than individual policies on each one, could be cheaper. I have never heard anyone talk about setting up insurance for their rental properties like this. I called one broker they didn't really seem to know what I was talking about. I think there may be an issue getting my mortgage holders on board to pay their respective portions from the escrow accounts. Has anyone done this? Are there insurance companies that offer a product like this? Any insight from more experienced people are much appreciated. Thanks
How do you raise your initial capital to afford your first property, (without creative Real Estate investing)? - - - Stefan, 17y, Sweden
Quote from @Stefan Karlsson:
How do you raise your initial capital to afford your first property, (without creative Real Estate investing)? - - - Stefan, 17y, Sweden
Without creative ways, ... hmm saving? :D
Quote from @Sonny Valentin Sas:
Quote from @Stefan Karlsson:
How do you raise your initial capital to afford your first property, (without creative Real Estate investing)? - - - Stefan, 17y, Sweden
Without creative ways, ... hmm saving? :D
Hahahaha yes ofcourse but how could I earn that money efficiently?
What property management software do you use or reccomend to mange your properties?
Hello
My name is Mark Tefera
I have been following the bigger money podcasts and it's changing my life already .
We live in Miami ,fl . I''m a health professional and my wife stays at home taking care of the kids
The goal is to generate income and slowly retire from 9 to 5 job
The house we live is paid off and we have 1 rental property which generates about $700 cash flow. In addition We did an addition in our primary residence with 1 bedroom and 1 bathroom and it's rented about $1700
This house has still have additional 4 bedroom and 3 bathrooms. Which makes it a good candidate for medium term rental, it includes a pool and tiki bar as well
We r planning to buy another primary Residence under both our names or my wife's name using FHA . We are not legally married yet . Hoping she will be eligible for FHA loan
So my question will be which will be a better option new construction in OK area or house built 1980 great condition close to hospital and a pool we can enjoy . Planning to do garage conversion in both cases and get help on mortgage
Thank you for all the help and keep up the great job
Question about Mortgage recasting-
My name is Robert, I am curious, I only recently learned that recasting is even a thing, and I want to know, in the context of a rental debt snowball type plan, could this be a useful tool? The idea would be instead of making consistently higher payments on a monthly basis, you save all of that then make a large lump sum payment (say 30-50k each time) and also recast the mortgage at that time, lowering the monthly payment. It seems to me that this would help to improve cash flow on a more frequent incremental basis rather than having to wait until a unit is fully paid off.
what are your thoughts as to the pros, cons, and things to think about here?
Good afternoon, my girlfriend and I are looking into buying our first home to start our portfolio. We are currently under contract on a home. The problem is that the appraisal came back super low which would put the sellers in a position that would force them to come out of pocket (possibly not having enough cash on hand). I tried to inquire about possibly taking over their USDA loan, but nobody seems to know how to find out if thats possible. I offered to pay all realtor fees. This would make out upfront cost go down as well as our monthly payment. I’m struggling to figure if its even possible for us to take over their USDA loan? How can we get everyone to understand and get on the same page?
Thank you,
Joseph Chevalier
Hi, big fan of David and the Podcast team. I own two rental properties in Houston, TX, in both of which I used to live and have since moved on as the family out grows them. They are old ranch style single family homes built in the 50s (1,800 to 2,400 sqft, 3br) located in one of the traditionally best regarded neighborhoods in Houston, with values at over $1 million dollars each. The property value, however, didn’t see any increase in the real estate boom of the the past couple of years. There’s been very few properties sold in the neighborhood and the even the Bigger Pockets website couldn’t give a reliable value estimate due to lack of comps. Not wanting to sell for a loss, we haven both rented out but are well short of being able to cash flow. Do you have any experience and advice on working with this type of market? Thank you!
Hi,
First I love the show and really appreciate all your advice. I've been listening for about a year, and I feel much more ready to take action than before.
My mom has about 500k cash. We currently own a condo we have about 130k equity which is more than half the property purchase price. The loan is at 2.3 %. We are both on the loan and the title. We're in Washington, dc area because i have a w2 job around 100k/year. My mom still makes around 70k. We sold our house in California to come here for my job. Eventually, we want to be back in California. We also want to buy a house before some crash of the dollar happens that would potentially price us out of the housing market, particularly in California forever. At the same time, there's no other time factor that says we have to buy now. Some experts say prices will continue to drop this year and next year, while others aren't so sure. Additionally, my mom and i are acting like partners, and it would be great if we could get enough properties to cover my w2 income and provide my mom with tax write off and extra income for retirement, and i can help arrange management for the properties. There are so many factors to consider. Should we jointly or individually take additional loans to buy a multifamily this year? Or, should we jointly or individually take additional loans to buy mulitple properties. How much cash should we hold? My mom does not want to consider any stock market investments. We have her money in a high interest account making almost 5 %, but with the recent string of bank failures, were thinking it's better to go ahead and get that into property instead. Plus those high interest rates can't last forever, right? I also have 401k with around 150k. I'm in contact with one of your agents, but i wanted to try to focus in on which path to take before our meeting next week so he doesn't think im all over the place. The agent i spoke to also said current roi in California is around 1 to 2%, so is it better to stay in the high interest savings account for now? The other problem with that is Mom doesn't have any tax write offs, so she's having to pay a few thousand for taxes. Sorry its so messy, not sure how to break it down in a simpler way.
would appreciate any light you can shed on this position.
Thanks so much
Hello,
I'm trying to figure out the best move to make for myself in real estate. I own my home outright and its probably worth about $700,000. Im assuming with that amount of equity I should take out a Heloc to invest further. Im a contractor and am fairly skilled at all phases of construction and I own 4 properties outright in my area that I could build single family homes on. So my plan is to Heloc out 200k from my house, build a rental house. Refinance the rental house and use the rental income to pay the mortgage and then just repeat that process on all four properties over the course of 5-10 years. What do you think? It seems fairly safe.
Alternatively I could take out a Heloc and buy a 4plex and it would be less work.This is all on the Oregon Coast.
Thanks
Keith
Hi, I just completed the form to ask a question, but I didn't see where I could upload a video of my question so here it is!
Hi David,
I’m a huge fan! I recently discovered the Bigger Pockets Podcast after reading Brandon Turner’s “The Book on Rental Property Investing” and I’ve learned a ton! Thanks for sharing your wisdom!
I am a new investor, currently have one investment property and we close on our second one in a month. My husband and I own and operate a brewery, which is currently full time for us. Our accountant recently informed us that if we make more than $150,000 a year, we cannot deduct more expenses than we earn in passive income. The house we are closing on in a month needs some work and we are most likely going to incur more expenses this year than our passive income from the property.
We invest in real estate for cash flow, appreciation and for the tax benefits. Do you have any suggestions how to maximize the tax benefits with this $150K rule? Do you suggest that I qualify as a real estate professional by spending at least 750 hours a year in real estate and more than half my total working hours in real estate? Or, is there another way to get all of the benefits of real estate while working full time in our brewery? Thank you in advance for your advice and time!
Hi, I'm shopping for Insurance for one of our rental properties, can you do a deep dive on insurance? Thank you and I love you'll for being a part of our financial future. Say Hi to "Big guns David".
Hello my name is Yasiel, a little bit about me, I’m 30 years old from Florida I moved up to Alaska a while back where I commercial fish, I make 6 figures a year but I’m gone 7-8 months a year which is extremely taxing on my life, mental health and mirage, and over all happiness, I realize I want financial freedom to be home more with my family , and do the things I know I’m meant to do. I work extremely hard for my money but now I want my money to work for me, I grew up poor in Cuba, my parents didn’t come from much either so I lack the financial knowledge to succeed in life. For example I made close to 200,000 in 2021 , but only have my house to show for it and 46,000 in tax debt and it’s also under my wife’s name because my credit score was not good enough to get the loan. I invested some in crypto when the hype happened and lost most of it when I had to sell for cheap. Because of expenses with getting married and new home owner ship. Problems I am facing include, having to fish to pay off this tax debt or using the money I make fishing which could be 30, 50k in three months , and then fish some more to invest, but I’ve been at this for 7 years and every day I spend on the boat I want to jump over when missing home 😆. The good news is that my wife and I are going to move into our in-laws home In Alaska because the snow bird in Arizona, it’s a great opportunity for us as we can now rent out our 5 bedroom 2 bathroom home in anchorage. My wife is against the idea of renting it out by room to the volleyball team in the local university through a coworker of hers that knows the coach. The lady then said actually this would be perfect for my cousins who are moving back to anchorage. But after I heard the first idea my wheel turned and now I can’t get that idea of renting out by room out of my head to increase cash flow with hopes of investing more and getting out of fishing!! But my wife is totally against the idea. I’m trying to convince her that I’m serious about starting my real estate dream so I can quit fishing and be home . And a way to do that is rent by room of our first home.
Some of my problems is my tax debt
Wife’s skeptical of my plans
Where is my time better spent? Back home finding deal getting my real estate license and immersing myself in that world or to be stuck fishing for the big checks to invest with.
Can I not pay my taxes going forward and throw that into deals? For a few years then pay them? I’m lost and desperately seeking advice I’ve been listening to the podcast since January and reading anything I can to educate myself and get out of this rat race I am in. Help.
Hello my name is Yasiel, a little bit about me, I’m 30 years old from Florida I moved up to Alaska a while back where I commercial fish, I make 6 figures a year but I’m gone 7-8 months a year which is extremely taxing on my life, mental health and mirage, and over all happiness, I realize I want financial freedom to be home more with my family , and do the things I know I’m meant to do. I work extremely hard for my money but now I want my money to work for me, I grew up poor in Cuba, my parents didn’t come from much either so I lack the financial knowledge to succeed in life. For example I made close to 200,000 in 2021 , but only have my house to show for it and 46,000 in tax debt and it’s also under my wife’s name because my credit score was not good enough to get the loan. I invested some in crypto when the hype happened and lost most of it when I had to sell for cheap. Because of expenses with getting married and new home owner ship. Problems I am facing include, having to fish to pay off this tax debt or using the money I make fishing which could be 30, 50k in three months , and then fish some more to invest, but I’ve been at this for 7 years and every day I spend on the boat I want to jump over when missing home 😆. The good news is that my wife and I are going to move into our in-laws home In Alaska because the snow bird in Arizona, it’s a great opportunity for us as we can now rent out our 5 bedroom 2 bathroom home in anchorage. My wife is against the idea of renting it out by room to the volleyball team in the local university through a coworker of hers that knows the coach. The lady then said actually this would be perfect for my cousins who are moving back to anchorage. But after I heard the first idea my wheel turned and now I can’t get that idea of renting out by room out of my head to increase cash flow with hopes of investing more and getting out of fishing!! But my wife is totally against the idea. I’m trying to convince her that I’m serious about starting my real estate dream so I can quit fishing and be home . And a way to do that is rent by room of our first home.
Some of my problems is my tax debt
Wife’s skeptical of my plans
Where is my time better spent? Back home finding deal getting my real estate license and immersing myself in that world or to be stuck fishing for the big checks to invest with.
Can I not pay my taxes going forward and throw that into deals? For a few years then pay them? I’m lost and desperately seeking advice I’ve been listening to the podcast since January and reading anything I can to educate myself and get out of this rat race I am in. Help.
David: Would love to hear your thoughts on earthquake insurance. Knowing you have properties in Northern California, do you carry earthquake insurance for any of your investment properties? Why or why not? Our family has 2 single family rentals in Livermore and one Condo in San Jose.
Thank you.
Jeff
San Ramon, CA
Hi David,
Yoav here. I don't own any rentals yet but am closing in on my first one hopefully this year. I was listening to your podcast about negotiating a deal while under contract and I really liked your approach. As a Buyer that maximizes the benefits I get out of the transaction. My question to you is:
As a real estate agent, does strategizing this way (first credits for inspection stuff, then credits for low appraisal, etc) hurt your standing with the sellers agents? I understand that being an agent is a relationship based business, and so my concern as the buyers agent is that the sellers agent wont give me any of those "There are multiple offers but if you raise the price by $50k its yours..." wink wink nudge nudge type pieces of information in the future because they'd rather go with an agent that isn't going to help the buyer nickle and dime their seller.
Thank you,
Yoav
San Francisco, CA