Have a question you'd like asked on the BiggerPockets podcast?

General Landlording & Rental Properties
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Have a question you'd like asked on the BiggerPockets podcast?

Alicia MarksPro Member
Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes

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!

[email protected]Podcast Guest on Show #204
32Reply
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Most Popular Reply

Dave Carter
Rental Property Investor · Springfield, IL · Member since 2020 · 36 posts · 35 votes
4y

@Alicia Marks

Hi guys! David, your BRRRR book was my first intro into BiggerPockets and I listen to it once a year. Thanks!

My wife and I started 5 years ago and have 3 SFHs, one under contract, and a four plex. We're dealing with our second "got behind, trashed the place, and might have to be evicted" situation (in a SFH). Beyond the rent they owe, I want to sue them for the damage they've caused to the house. Broken window, kicked in glass exterior door, and busted up interior barn door.

Is it worth it to try and sue for damages? The emotional side of me is so angry that they damaged a house I put a lot of work and TLC into, and that between damage and lost rent, basically a year of profits from the house will be wiped out, but the logical side of me thinks I may be throwing good money at bad. Can you discuss the topic of late rents, evictions, and to sue or not to sue?

PS - ideas for the podcast: I loved the live question format you guys did a one-off of. It reminded me of a Dave Ramsey episode. I loved hearing other peoples situations and questions. I love everything you guys do. Thanks!!

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  • Amish Patel
    Investor · CA · Member since 2022 · 13 posts · 22 votes
    4y

    live in California and have rentals in California and Arizona. Looking to expand my portfolio to other states and am looking for ways to structure my corporation. ( i.e californial llc that owns llcs in different states )

    0Reply
  • Ed Hoffmann
    Member since 2022 · 28 posts · 19 votes
    4y

    When is a good time to have a free and clear property verses a property that has a mortgage. 

    0Reply
  • Katie Eklund
    Rental Property Investor · Carpinteria, CA · Member since 2012 · 4 posts · 1 vote
    4y

    This is sort of a Brandon Turner related question- but I am sure David is in the know and that the topic may be of interest to others.  

    I have heard Brandon has a property he bought for his daughter to have when she becomes an adult- and he is currently keeping the cash flow but it ultimately will go to her.  How is this structured?  

    I have two year old daughter and am interested to hear if there is a unique way to set this up.  Is it actually in the child's name?  Is there any tax savings or risks to be aware of in setting this up.  Or is this just a theoretical way to gift an asset, but on paper it remains in the parent (grandparent/ gifter's) name?   

    1Reply
  • Jake Wiley
    Investor · Charleston, SC · Member since 2022 · 234 posts · 198 votes
    4y

    The world starts to seem very small when you jump into a group and network of real estate investors, and everyone has their own style and ideas of what has or could lead to their success, however the world is much smaller when it comes to those that are doing this full time and have had rapid growth.   I've had the opportunity to talk with quite a few successful investors that have eclipsed the $100m transaction mark but would love to hear your thoughts on what you'll find in common with all of these investors.   

    0Reply
  • Kathy Corressell
    Miami, FL · Member since 2017 · 20 posts · 20 votes
    4y

    Hello,

    I'm a new investor but I have been able to get 4 properties in the past year (1 condo long term rental, 1 sfh long term rental, house hack with an adu short term rental and a duplex short term rental) and I'm extremely excited to keep going. That being said most of my cash is tied up in these 4 properties and I'm looking to use private money, helocs other more creative financing options.  I have a lot of options but I'm just not exactly sure how to structure these types of deals. I've read books about partnership and using other peoples money but I can't see to find the practical steps to it. For example I have my eye on a quad but I need about $170k cash to buy and rehab. I have 2 private money investors that have enough cash combined to do the deal. Lets say I do the loan only under my name, then do all of our names go on the title? And then create an operating  agreement with the equity and cash splits?  Do I just create a sperate bank account and pay them out monthly or quarterly?

    I did a partnership deal already and had created an LLC and operating agreement because we were told we could transfer to the LLC but then the bank went back and said not we can't. So now the property and loan is only in my partners name and its been a mess. I know all the gray area about LLC and that if you transfer they probably won't call it due but my partner doesn't want to transfer without bank approval.


    Anyway I just am confused about how partnerships work with multiple people involved as far as who gets the loan, whos on the title, who holds the money etc.

    Thanks!

    Kathy 

    1Reply
  • Daniel Sanchez
    Real Estate Agent · Houston & College Station, TX · Member since 2020 · 47 posts · 27 votes
    4y

    HowdyDany from Houston, TX. Given the recent chaos in the stock market, I was wondering what is the biggest threat to the real estate market? Interest rates, bankruptcies from moratoriums, etc?

    1Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    @Alicia Marks

    Simple question.  Why doesn’t Bigger Pockets on the Forum track views?  Most people don’t vote, thus votes are not a good measure of a posts value or interest.  

    Wh doesn’t Bigger Pockets take this direction so it can monetize it’s website better?

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    @Alicia Marks

    Simple question. There are three types of people on the forum:  1.  Fishing, who won’t ever make the jump, 2. People going places, 3.  People who have been there who want to help others, just killing time, or want to show their knowledge. 

    There is no way to differentiate without wading through the posts. 

    Recognizing this, why not utilize that to Bigger Pockets advantage and monetize it?  Or the forums are “chum” for the other Sales avenues?

    I enjoy Bigger Pockets but really enjoy   understanding Business models and approaches. The above would be very enlightening.  

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    @Alicia Marks

    Can you set up a forum and investing program for active military personnel?   With their BAH allowance and two to three year assignment periods they have untapped investment strategies they could use.  

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    @Alicia Marks

    People can be divided into those that want to make money and ones that don’t want to lose money. 

    The ones that don’t want to lose money are all looking for reasons not to invest.  They can read or watch all the posts and podcasts on how to make money but they will never invest.  

    Would be glad to help Bigger Pockets to develop a program for these people on “How” to lose money.  Once they understand how and how much money they might lose, the greater the chance they will invest. 

    1Reply
  • Will KennerPro Member
    Rental Property Investor · Seattle · Member since 2018 · 134 posts · 100 votes
    4y

    David, just listened to Episode 566 of the Real Estate podcast where you talked about credits at closing. It was a bit confusing when you said that a buyer can only get a credit up to the closing costs, but then later used an example where the credit was more than closing costs and the buyer could use those funds for improvements.

    Does this limit only hold true to prevent buyers from unnecessarily getting credits when there’s no documented need for repairs?

    If there is a legitimate repair needed on a property that's documented at closing, would the limit not apply then? So in the case of buying a duplex for $500k and it needed a roof for $25k, you could still get a $25k credit even though this exceeds the value of closing costs?

    Also, would this apply to both commercial and residential loans? Repairs in the commercial space, as you know, are often big numbers, well beyond closing costs. I haven’t had to deal with credits for repairs yet as I’ve been fortunate enough to have had the sellers complete them before closing.

    Thanks for the clarification!

    1Reply
  • Molly Schwartz
    Member since 2022 · 1 post · 1 vote
    4y
    Quote from @Lena B.:

    Hi! I'm Lena from beautiful Whidbey Island, Washington State. My husband and I have (all over the South) 3 SFH,1 4plex and we house hack our primary home located in Washington state. We are on year 5 of this journey and finally "feeling" the benefit from monthly cashflow. My question is, on the 4plex, located in Mississippi. The building is literally split by two lots, why, I don't know but it is. I know no one that can help me figure out if combining the two lots will help reduce my property taxes. Is there a professional I can consult with on this? The answer I get after 3 phone calls to the city zoning and development office is that it might reduce my taxes and follow the directions on the paperwork, pay your fee and find out. Help!

    There might be a fee. I’m assuming only you’re local lawyers office would be able it depends on a lot of factors 
    1Reply
  • Daniel Sanchez
    Real Estate Agent · Houston & College Station, TX · Member since 2020 · 47 posts · 27 votes
    4y
    Quote from @Amish Patel:

    live in California and have rentals in California and Arizona. Looking to expand my portfolio to other states and am looking for ways to structure my corporation. ( i.e californial llc that owns llcs in different states )


     Texas my friend!. The state where everything is bigger, including the profits ;) Would love to help if you have any questions.

    1Reply
  • Brandon Barr
    Member since 2022 · 2 posts · 1 vote
    4y

    Hello, my Business Partner and I are new RE investors in the South-Eastern Michigan area. We are debating on what Real Estate market to turn our focus towards.

    Our hometown area is a tourist town off of Lake Huron, and is well known for summer time vacations. This could be a lucrative STR location that we are very familiar with and feel comfortable with the location close to our homes. The downfall is that it would primarily be a STR game only, and the idea of rent coming in only half of the year scares us.

    On the flip side, we are contemplating focusing on areas closer to bigger cities nearby (less than a hour drive) that would allow for a more steady LTR investment with monthly cash flow and decent appreciation. The downfall here for us is the distance from home it would be and the lack of physically seeing the rental easily without inconvenience, which we would prefer. 

    Just some info about us, we both work full time very demanding careers and have families, so time is an issue. Cash flow is not a necessity, we are happy breaking even as long as the investment is appreciating for a good return. We have a goal to scale our business within 5 years to 10 properties or so, with a ultimate goal to replace our day jobs with real estate income. Currently, we plan to self manage our properties until it is too much to handle.

    We are hoping to gather some valuable insight from more experienced figures in the real estate world to help us move forward. Thank you!

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    4y

    @Brandon Barr

    Check out the STR competition and see if there are any local Meetups you can attend. Don't assume you won't colllect rent for 6 months - maybe you will.

    If you go LTR route, just hire a good PMC - then properly manage them. 

    BTW, if you can't manage a PMC, how are you going to manage tenants yourself?

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    1Reply
  • Kristopher Kelly
    Investor · Fort Walton Beach. FL · Member since 2020 · 87 posts · 42 votes
    4y

    @Alicia Marks Video ready and I have submitted through the link! Love this forum and have met so many people. I don’t get how people are in the real estate space without being in the BP fam!

    1Reply
  • Mary Smith
    Rental Property Investor · Member since 2021 · 385 posts · 197 votes
    4y

    @Alicia Marks I had a pretty random question. What is the best way to screen international applicants? 

    1Reply
  • Brook Appelbaum
    Investor · Austin, TX · Member since 2020 · 3 posts · 3 votes
    4y

    @Alicia Marks- 

    Hi Alicia- I have no idea if you are still checking this, but here goes...

    I have a small portfolio, yet have managed to place bets in extremely high appreciation markets. To date, I am sitting on about $2M in equity but am not sure the best way to tap into it. The rates for investors are through the roof and all of my properties are currently mortgaged at 3.75% and BELOW. Should I attempt to do a cash-out refi with a portfolio lender? I feel like those with cash right now are going to get the best deals...market is softening and fair-weather investors are bailing. As the rates increase I think more people are going to try to get out and cash-out. I'd love to be there to reap the benefits. My question is whether it is a good idea to do this (refi/cash-out equity with portfolio lender)? Should I wait it out until 2023/2024 for rates to come back down? Thanks so much for the consideration!

    1Reply
  • Alex Houser
    Rental Property Investor · Boonton, NJ · Member since 2018 · 11 posts · 2 votes
    4y

    Hi, there! I house-hacked a duplex back in 2018, and now I'm debating if it makes sense to sell. Numbers:

    Purchased for $349,900, plus $25k in renovations.
    Refinanced for $425k (currently owe $375k)
    Currently rented for $4,700 per month ($1,500 per month cash flow after expenses).

    I have a buyer willing to pay $600k in cash for the property, which would give her a 9.5% cap rate on her investment. In turn, this would allow me to pay off the mortgage, pay off about $70k in student loans, and still have $150k left to purchase another investment. On the other hand, this property makes me $18,000 per year in passive income.

    Should I sell or hold??

    Thank you!!

    Alex H from NJ

    0Reply
  • Alicia MarksPro Member
    OP
    Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes
    4y
    Quote from @Brook Appelbaum:

    @Alicia Marks- 

    Hi Alicia- I have no idea if you are still checking this, but here goes...

    I have a small portfolio, yet have managed to place bets in extremely high appreciation markets. To date, I am sitting on about $2M in equity but am not sure the best way to tap into it. The rates for investors are through the roof and all of my properties are currently mortgaged at 3.75% and BELOW. Should I attempt to do a cash-out refi with a portfolio lender? I feel like those with cash right now are going to get the best deals...market is softening and fair-weather investors are bailing. As the rates increase I think more people are going to try to get out and cash-out. I'd love to be there to reap the benefits. My question is whether it is a good idea to do this (refi/cash-out equity with portfolio lender)? Should I wait it out until 2023/2024 for rates to come back down? Thanks so much for the consideration!


     We are always following this thread!

    [email protected]Podcast Guest on Show #204
    1Reply
  • Larry Wilkes
    Columbus OH · Member since 2021 · 8 posts · 8 votes
    4y

    Larry Wilkes Rookie in the game have been working W2 and utilizing the snowball debt paydown method, i have recently been thinking about my next step toward my real estate journey; I want to know if it would be a smart idea to start with a single-family home 203k that live in flip it or would it be a better idea to start with a multi-unit 203k that and possibly start out cash flowing from living in one unit and renting out the other units. My ultimate goal is to own 10-20 doors in the next 5-10 years how would you attack this if you were in my shoes paying down debt and planning to make your first big move toward a rental. Thanks for your time.  

    0Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    It would be great to do an episode on investing in rent controlled markets and bring on investors from Los Angeles, New York, Oregon, etc. If done right, it could be profitable but if done wrong, could be very costly.

    2Reply
  • Angie Cal
    Member since 2022 · 5 posts · 1 vote
    4y
    Hi We have two rental properties (one with no mortgage and one with a low interest rate). We are looking to buy our next rental property within the next 3 years and are wondering what the best way to finance our upcoming buy and hold rental property? We currently have a LLC that we use for property management purposes and would like to purchase our next property under the LLC. What is the best way to do this? Additionally, in this type of scenario does it make sense to have a LLC for each property? We are in Virginia.
    1Reply
  • Michael Litle
    Member since 2022 · 5 posts · 0 votes
    4y

    I decided to jump into building my portfolio about 2 months ago and have about $100k to work with.   We live in a bit of an expensive market with great growth, Navy, Shipyard, Medical, and easy commuting to a major city with a dozen or more major employers.  We looked at hundreds of homes and are now closing on a duplex that will cash flow with a small amount of equity.  Closing costs and 10% down chewed up about $60k of my $100k.  Now I see other deals I want to pursue but I'm anxious that my W2 can't sustain paying the out of pocket closing costs for the number of deals that I really want to do.   Do you have any recommendations on how to continue to work the next deals in this situation, or do I just have to build the fire slowly and let the cash flow and equity increase to bankroll deals next year and the year after?

    0Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    4y
    Dear Mod, Please correct the spelling of the topic! I'm just a little OCD about this, every time I open the forum...
    0Reply
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