All Forum Posts by: Bill Patterson

Shay,
I have to disagree with you on this one! The individual agent is by far the most important! The best agents will naturally be at a good firm. It could be a big franchise or a one man show, but it is the agent that drives the success. We refer to Realtors many times each month and get mostly good ones, a few exceptional ones and some that we will not refer to again! As Realtors ourselves, we know the questions to ask and what to expect of the Realtor. We do well with out picks, but we don't win them all!
Bill

It is a 42 unit MF property. You definitely need a negotiator experienced with commercial SS's! No BPO here. Be prepared to pay for an appraisal, provide rehab costs, know how to figure income and expense, value, etc. This is not a beginner Short Sale!
Bill

The "Herbster" was a good guy. I will miss his laugh and smile when he would stop by.

Good advice from Jon. I would also give an estimated cost of the damages along with pictures. Now is the time to negotiate, since you are a ready and committed buyer.
Bill

Well stated Bryan!

Rich is right...They are a lot alike. For years I have heard about the tax benefits of real estate and business. For years I have owned both! The truth is, that most of the tax benefits cost as much or more than the tax savings! I wish I had a dollar for ever time someone told me that something did not cost me anything since it was a "tax write off"! I'm not against paying taxes...I just want the most $$$ in my pocket at the end of the day! There are some special programs out there, such as the $2,000 tax credit for building an Energy Star qualified home. For the past few years that has saved me lots of tax dollars!

You are also right that 1031's can allow you to reinvest all of your capital into a new property without paying taxes. This assumes that you can find the right exchange. Another school of thought is to pay the 20% tax on your capital gain on the sale and use the cash to buy one of the many deals on the market today.

The bottom line is that a good tax advisor can help maximize your net income and lower your tax burden.
Good luck!
Bill

Google "Real Estate Investment Clubs" in your area. That is a place to start for a mentor. Also BP has lots of great info. One word of caution....Don't let someone at the REI Club use you for their "sucker buyer" on their very profitable flip!

There are many great deals out there on distressed properties. Look at lots of them and get a feel for market value, so you know a good deal when you see one. A good buyer's agent can give you comparable properties selling prices and advise you on offers. Don't be afraid to offer a low price on a short sale or REO property. Some may look a little rough, but some "elbow grease" can turn one of these into a good investment. Spend some time looking at houses that are for rent in your area. You will need to know what the rental rates are running so that you can estimate your potential income.

Your agent can also help you with property tax costs, but your tax advisor will need to help you with the benefits of investment property tax wise.

There are lots of ideas about cash flow, expenses, etc. on Bigger Pockets. The main thing is to not under estimate your expenses or over estimate your income potential.

I hope this was a little help! Have fun reading all of the other investment advice on BP!
Bill

We look at "Bird Dogging" as subcontracting out our marketing. Is it really any different than paying a marketing company or call center for leads?

This also leads to a good referral network.
Bill

Hi Charles,
I'm from the Kalamazoo/Portage area on the west side of the state. Good luck with your ventures! Every market has its opportunities. Just be careful, do your homework and ask lots of questions from people that know the market and can give good advice.
Bill

Rob,
Can you please elaborate on that? I am on a Condo HOA Board and we have an issue with one of our owners not paying. We have a judgment, but hesitate to foreclose.
No hurry....Have a great holiday weekend!
Bill