All Forum Posts by: Bryce Y.

Robert Lapp

If you go to the county assessor's website, you can look up property details. Usually the state code will tell you the type of property. Typically a 4-plex will be something like A-4, triplex A-3, etc. Thing is for Dallas County they don't have a definitive state code for 3-4 plexes; you might have to look in the legal description and even then it would be difficult. For example, my 4-plex was classified as commercial multifamily. So I called Jerry to work his magic.

You can usually request an appraisal roll for all real property from the county (you may have to pay a few bucks, some are free). You will need a way to process the data (usually excel is not enough). From there filter for state code, etc.

I bought a list of small multis from Jerry Puckett. Filtered down a little and sent out 80 yellow letters. I got 16 calls (that's 20%!) and just closed on a 4-plex from that list a couple weeks ago.

More than likely it was just beginner's luck, but hey, I'll take it.

Brian Hoyt

I assume your leases are all in English. I am inheriting some tenants where English isn't their first language. I plan to write up new leases. They speak enough English to communicate basic things, but I'm worried about if things get ugly. Say you take them to court and they tell the judge they didn't know what they were signing... Maybe in Texas it is okay, but I can definitely see some of the more liberal states ruling in the tenant's favor here.

Won't the fact that they are putting 50% down mean they could probably cover the difference if the appraisal comes in low?

On a slight tangent, say the appraisal comes in 10k lower than contract price. Could the buyer, instead of coming out of pocket 10k, renegotiate with the bank to add that 10k into the loan, resulting in a slightly higher LTV loan? Would most banks be okay with this?

Curtis N.

Thanks, that exactly what I was looking for.

Thanks guys. I will go ahead and get him to fill out a W9. Any insight into this?

My understanding is that you don't need to 1099 corporations. I got an inspection done for $750. Do I need to call them and ask? If they say they are incorporated, how can I verify this? Also, this inspection was done prior to closing on my first property, so can I still deduct this expense since at the time I wasn't officially in the RE business?

Hello guys,

I will be hiring a handyman for some small work. The total job should be well under $600. Should I still issue a W9? If all goes well I will most likely be giving him more work this year.

Also, what if the contractor lies on his W9 and gives a fake SSN or something? Will I still be able to deduct whatever I paid him?

If total work is less than $600 for the year, this means I can legally deduct these expenses without sending a 1099 right?

My understanding is that you don’t need to 1099 corporations. I got an inspection done for $750. Do I need to call them and ask? If they say they are incorporated, how can I verify this? Also, this inspection was done prior to closing on my first property, so can I still deduct this expense since at the time I wasn't officially in the RE business?

Thanks!

Orion Longman

I am also from Hawaii (born and raised 25 years) and decided to come out to Dallas because housing prices in Hawaii and on the coasts are just insane. Of course being single with no obligations helps a lot. Life is actually pretty cool out here.

Jerry K.

This is a great thread. Thanks for taking the time. I have a bunch of questions.

1. What is your plan for the properties with 3 years delinquent taxes? How likely is it that someone will come next year and buy you out?

2. What factors do you use to determine whether it would be more profitable to buy the subsequent year's lien or have someone buy it out and get a check?

3. When you, as the lien holder, get first crack to purchase the subsequent lien, is it at the full 16%?

4. Have you ever foreclosed before? I assume once you foreclose, you can either sell as is or rehab and sell. Going in with the intention to foreclose seems risky but also seems like it can pay off big. This leads to my next question.

5. What do you typically see happening with liens that have 4, 5, 6 years? I would guess big institutions wouldn't touch these as their strategy is centered on collecting interest. So if you did bid on these, it would have to be with the intention of foreclosing.

Thanks!

Sounds good. Count me in