All Forum Posts by: Ben Fernandez

Interesting. I'll have to give that a try to see what it spits out. Thanks for sharing!

Foreign LLCs will cost you more from a fee perspective. 

Tax basis will relate to your filing status and entity structure which is best spoken to by your attorney and CPA.

If setting up by yourself, you'd risk anonymity concerns which relate to asset protection. If you aren't going to set up the LLC correctly, for asset protection structuring, you might as well buy it in your personal name. It'll be cheaper financially.

Gotcha...I like your goals utilizing the lease option. The connection to the other business ventures is interesting. Even if you don't find someone able to chime in on that niche, you sound creative enough to make it a success. Keep up the good work.

Only entertain this if you feel you can perform.

A lease option will require a down payment, more than likely, followed by a balloon payment upon a payoff due date. If you default, you'd lose all that has been invested in the property. If that is the case, just let them take it to market to sell.

You could offer to manage the property and have them to rent it out now where you pay them a flat rate every month and anything you make over that amount is yours to keep. This could allow you to buy time to get your financing in order and buy it later.

Just be sure to run a cash flow analysis so you know whether it will cash flow based upon its current expenses. If you need a tool to help you with that, feel free to connect.

I think it depends on the deal that comes your way.

If you can find a cheap plot of land that's buildable and the profits exceed a potential flip's (you could also acquire), go for the build.

Vice versa. If the flip is more efficient, and delivers a better profit, go for the flip.

Notice, I made hence to efficiency. That is a thought that's in the back of my mind regarding all the red tape you may encounter on the building side. Keep in mind, time costs. So a flip and a build with the same profit margin, but one is less time arriving to the goal, the shorter time span option is the better deal.

It's always worth doing something you're passionate about. Go for it.

Just don't sign up with a brokerage that will charge you monthly fees.

You sound like you have a lead source through what you do as a firefighter and you should follow your first mind and become a direct source for those people your getting acquainted with and building rapport. After all, if you can't service them, you could refer them to another agent you trust and earn a portion of the commission.

You need to get licensed. These would be simple referrals.

Otherwise, wholesale them for a flat fee. Either the owner can pay or the buyer. However you structure it. You could also sell the lead to another company/person. There's plenty of people ready to pay for hot leads.

If those aren't options, and you are focused on owning them, seller financing, subject-to, and lease options are the only remaining options.

Hadn't thought about using it for deal analysis. I have a suite of tools though for that.

All others, we share the same usage. AI has definitely optimized everyone's productivity.

Regardless of where you get the furniture, you need to meet or exceed the competition's amenities. If that furniture grants you that performance potential go for it.

It appears you're looking more so for what your break even point is. Be careful where you pinch. As a savings of a few thousand dollars on furniture, could determine if your occupancy rate is 65% versus 70%...If the revenue is $50,000/yr that's $2,500 in one year (which could be the breakeven for that specific line-item expense).

To determine you total breakeven point occupancy rate, and not just related to the furniture, take your operating expenses plus your debt service and divide it by your effective gross income. This is the minimum occupancy you'll need to stay in the black. If you need tools to aid your evaluations, feel free to connect.

For any value add project, the primary evaluation is based on the numbers.

Provided you have trustworthy teammates for the renovation side and a competent agent on the valuation side, you'll perform no matter the location.

It seems your weighing factors that relate more towards long-term investing and where your asset will appreciate the most.

In respect to emerging markets, you'll want to use characteristics like population growth, employment growth, safety trends and path of progress. Here's a good article if you're looking for tips on this type of research. - https://investingte.com/how-to-identify-real-estate-micro-markets-to-invest-in/

Overall, depending on the deal and the asset class, you could perform well in either state. It is a case-by-case. Now if you don't want winter, you've already ruled out Ohio. Winter is definitely a thing in Ohio.