All Forum Posts by: Ben Clark

I want to maximize deductions without needing to recapture 

thank you @Jenny Bayless! Are there any loopholes to this?

Can you write off rehab costs as repairs and maintenance when using the BRRR strategy?

Anybody ever done business with chase foreclosure? The guys name is Christian Chase. I'm just wondering if this is legit. Can anybody share any positive or negative feedback?

@Jeff Wallenius thanks! Would love your contacts for operators. 

thanks @Meghan McCallum and happy new year. I have a business, which I work on full time. My time is flexible, but I'm really looking to invest in real estate passively. 

I have experience putting systems in place at my company to improve efficiency. 

I would definitely set up an LLC.

Where is the best place to find a mentor or coach?

While I'm not new to investing, I'm new to RE investing and would appreciate some input from the BP community. 

I'm looking to get started with buy and hold rental properties. I would like to buy SFRs or townhomes that can be cash flow positive at 70% financed with a 30 year am. I would also consider a 15 year am even if it meant cash flow slightly negative. 

I want to net 10% or more and ideally would like to be able to purchase below market value. I have to be able to beat publicly traded REITs which offer more liquidity. 

I'm wanting to put some cash to work and am looking very long term (i.e.  Buy and hold forever). 

Anybody in this market have any suggestions? Is this deal out there? Where should I be looking? 

Don't replace it and definitely do not paint vinyl siding.  I'm with some of the other posters, add some vinyl shutters.  There is a company near you that I've worked with before that has some nice inexpensive shutters.  Exterior Vinyl Shutters

I've done valuation analysis and due diligence on businesses before. The only real estate I've purchased to date has been for my primary residence.

I am looking at an 8 unit multi family which is about 6500 sq feet. I have driven past the property and seen photos of the outside only. The seller has sent me an excel file which is basically a pro forma income statement.

The monthly numbers are as follows:

Income: $5700

Repair & Maintenance: $200

Insurance: $200

Property Tax: $800

Gas: $100 (seems low to me for an 8 unit)

Electric: $100 (seems low to me)

Water: $75 (seems low to me)

Garbage: $60

NOI: $4165

Is this missing any numbers that I should be including (beside) debt service? I'm able to calculate a property value if I input a CAP rate on this NOI. What do you all find is a typical CAP rate on a deal like this?

I've found it hard to comps on a property like this, but I haven't contacted an agent and perhaps they could help me better with that.

My question is what is the process to determine ARV? What is acceptable to ask the seller before making an offer and providing EM? Normally when analyzing a business, I would ask for income statements for the last 3 years and possibly even tax returns at this stage. After an offer, in due diligence phase, I would request all the details for example, vendor invoices, sales orders, etc.

At what point is acceptable to ask the seller for tenant agreements, copies of utility invoices, etc? When is it acceptable to ask to see the inside of property? What else do you ask for?

My other question is about when do I involve each member of the team? I haven't spoken with any mortgage brokers, but I'm pretty sure I would get financing.  What I'm unsure about is what kind of rate I would get on a deal like this.  I think it requires a commercial loan?

I have agents I've worked with on the purchase of real estate for my primary residence before. I have contacts that I, or family, has used for lawyers and CPA's. I'm unsure about if I would need to use property management or not yet, I want to find out more from the seller about how they have been managing the property. At what point should I involve each of members of the team? What fees should I expect to pay to each member of the team, and I realize this varies but I'm trying to get a ball park.

I want a CPA to advise on tax strategy. I want an attorney to oversee all aspects of the transaction, lease agreements, as well as form an LLC or Corp.