All Forum Posts by: Brett Merrill

Hi @Abigail Garcia here are some steps I would consider as you start you path for residential construction

1. Gain experience: If you have no prior construction experience, consider finding a job with a residential construction company or contractor to learn the fundamentals of the field.

2. Get education and certifications: Obtain an education in residential construction by enrolling in a vocational school, community college, or trade school program. Consider obtaining certifications in construction safety and management.

3. Secure financing: Secure enough capital to start a residential construction business. You can apply for business loans, venture capital funding, or seek out investors who are interested in the construction industry.

4. Acquire permits and licenses: Meet all legal requirements by obtaining permits and licenses from the local and state building department.

5. Develop a business plan: Develop a business plan that includes goals, financial projections, marketing strategies, and an operational structure.

6. Purchase equipment: Identify the types of equipment that are necessary for your business and purchase or lease them.

7. Build a team: Hire employees or contractors who will help you to execute your construction projects successfully.

8. Build alliances: Align yourself with suppliers or subcontractors who can assist in delivering materials and services when required.

9. Market your business: Don't underestimate the power of advertising, use various methods such as word of mouth, flyers, billboards, digital marketing among others to create awareness.

10. Focus on customer service: Retaining loyal customers begins with providing excellent customer service, and this can ultimately lead to more business opportunities.

Hi @Michael Bettinger

1. Attend local meetup groups: Attending local meetup groups is a great way to meet experienced investors in your area. You can network with other investors, learn from their experiences, and get ideas for your own investments.

2. Find a real estate investing mentor: A mentor can be a great resource for learning about real estate investing. Look for someone who has experience investing in the type of property you are interested in, and who is willing to share their knowledge with you.

3. Start small: When you are first starting out, it’s important to start small and learn as you go. You can start by investing in a duplex or a small rental property that needs some work.

4. Get educated: It’s important to educate yourself on the real estate market and investing before you start investing. Reading books, taking courses, and attending seminars can all be helpful.

Remember, investing in real estate requires time, patience, and hard work. It's not a get-rich-quick scheme, but a long-term investment strategy that can provide financial stability and passive income.

Hi Priscilla,

Regarding your question when to start an LLC when buying an investment property, the answer is it depends on your personal and business circumstances. Generally, it is advisable to set up an LLC before purchasing a rental or investment property to limit your personal liability. In other words, if something goes wrong with the property, you won't be held personally responsible, only the company will be. It is recommended that you discuss this matter with your lawyer and accountant as they can give you specific advice based on your situation.

Cost segregation is a tax strategy used by real estate investors to accelerate the depreciation of their property and reduce their tax liability. It involves dividing the components of a property into different categories, each with its own depreciation schedule. This allows for a quicker depreciation of some components, which can be written off as expenses earlier, reducing the overall tax burden. The main advantage of cost segregation is that it can increase cash flow for real estate investors, as they can defer taxes that would otherwise be due in future years. Cost segregation should be carried out by a professional who has experience in cost segregation studies to ensure that you are maximizing your tax benefits without running into compliance issues.

HI Dan, 

I'm very sorry to hear about your father. I'm out in the Western MA area. Feel free to reach out anytime. Best bet for around you would be to search for local meet ups. You can do so right here on BP. 

Hi @Sammy Hachani

 If you have $30,000 to invest in a fix and flip project you will need a money partner or a hard money lender. You will still have to put money down however they will usually cover the purchase and majority of the rehab. For your first one and with limited capital its all about finding a GOOD deal so put you time and effort into that for sure. Here are some general steps you can take to get started:

1. Determine your budget: Before you begin your search for a property, you need to have a clear understanding of your budget. This includes how much you can spend on the property, the renovation costs, and any other expenses, such as holding costs, utilities, and insurance.

2. Find a property: Look for properties in up-and-coming neighborhoods or areas that are experiencing growth. Consider distressed properties that need fixing up to purchase at a lower price.

3. Assess the property: Once you have found a property, you need to assess it and determine the necessary repairs and renovations. Get a contractor to do the assessment to help you to identify any hidden issues that may require fixing.

4. Create a renovation plan: Create a comprehensive renovation plan that outlines the necessary repairs, materials needed, and the timeline for completing the project. Remember to budget for materials, labor, and any other expenses related to the renovation.

5. Renovate the property: Once you have finalized your renovation plan, you can begin the renovation process. Stay on schedule and budget by managing your contractors and ensuring that they stick to the plan.

6. Market and sell the property: After the renovation is complete, it's time to put your property on the market. Work with a real estate agent who knows the market and can help sell the property quickly. Stage the property to showcase its features and attract potential buyers.

7. Rinse and repeat: After successfully flipping your first property, you can take the profit you made and invest in another property with a higher budget.

Remember, flipping houses takes time and effort, so be patient and persistent. Make sure you have your finances in order, and work with professionals to ensure a successful project.

Hi @Joe Solari

Know your budget, strategy and ROI/COC that you are looking for. Here are a some general criteria that you can select from. Have you looked into the Cape? I know prices are high but there are certainly deals to be found with significant STR potential.

1. Vacation destinations - Regions frequented by tourists, such as beach or ski resorts, have year-round rental demand, and some of the highest returns on investment.

2. Urban hotspots - Cities with high tourism demand, such as New York, San Francisco, and Miami, have a steady stream of travelers, businesspeople, and students looking for short-term rental accommodations.

3. University towns - Cities with large and diverse student populations offer landlords a stable, predictable tenant pool throughout the academic year.

4. Emerging markets - Investing in areas with up-and-coming neighborhoods, growing business districts or new tourist attractions can offer investors an affordable entry point with potential high returns.

5. Rural destinations - Rural areas can be a good investment opportunity if you're looking for quieter, more relaxed accommodations. They can offer lower cost of entry and possibly even higher return potential.

Hi @Salina Doe

Quick disclaimer I am not a lawyer and am not giving any legal advice. Please make sure to speak with a licensed legal profession in regards to the following information and for the proper course of action. 

Here are a few general steps I would look into and what to expect as a guideline:

1. Hire an attorney: If you're not familiar with the legal process or if you're dealing with a complicated situation, hire an attorney who specializes in rental property law, to guide you through the eviction process.

2. Review your lease agreement: Ensure that your lease agreement allows eviction of a tenant at will.

3. Provide notice: Provide the tenant with the required legal notice to terminate the tenancy. You may need to check your local laws and guidelines to know how many days' notice is needed.

4. File for a court hearing: If the tenant fails to move out, file for a court hearing to request an eviction order. Section 8 tenants may have additional legal protections, and it's essential to follow the proper legal procedures for evicting them.

5. Attend the court hearing: Attend the court hearing, present your case, explain the reasons for the eviction, and provide any supporting documents. If the court rules in your favor, you can proceed with evicting the tenant.

This can be a quite lengthy/expensive process. Cash for keys may be a better option. 

Hi @Rich Hupper,

A tax strategist is a professional who specializes in analyzing tax laws, creating tax-saving strategies, and providing customized tax planning solutions for individuals and businesses. They focus solely on minimizing tax liability and maximizing tax efficiency for their clients.

On the other hand, a CPA, or certified public accountant, is an accounting professional who has earned a state-issued license to practice accounting. They can offer a wide range of accounting services, including tax preparation, auditing, financial reporting, and consulting. While they are knowledgeable about tax laws, they have a broader focus than a tax strategist and may not specialize in tax planning for real estate investors.

In the context of real estate investing, a tax strategist may focus on identifying deductions and credits specific to real estate investment, such as depreciation, rental property expenses, and 1031 exchanges. They may also develop a strategy to convert personal property into rental property, use real estate losses to offset other income, and structure transactions in a way that maximizes tax benefits.

A CPA may provide tax preparation services for real estate investors, ensure compliance with tax laws, and provide accounting advice on issues related to real estate transactions. However, they may not have the same level of focus on developing customized tax strategies specific to real estate investment as a tax strategist would.

Overall, while there may be some overlap in the services provided by a tax strategist and a CPA when it comes to real estate, a tax strategist may be better suited for those who want to develop customized tax planning solutions to maximize their real estate investment returns.

Hi @Kenneth Bentley. Here are some actions steps I would consider. Hope this helps. 

1. Research and Develop a Business Plan: Conduct research on the property management market in Alabama and develop a detailed business plan that clearly outlines your company's goals, target market, services, pricing, and expenses.

2. Choose a Business Structure: Determine the legal structure of your company, such as a sole proprietorship, LLC, or corporation, and register your business with the Alabama Secretary of State.

3. Obtain Licenses and Permits: Obtain all necessary licenses and permits required by the state of Alabama and local authorities.

4. Build Your Team: Build a team of experienced professionals capable of handling property management tasks such as maintenance, leasing, bookkeeping, and legal compliance.

5. Develop Marketing Strategies: Develop marketing strategies to promote your business and attract potential clients.

6. Establish a Reliable Network: Establish connections with real estate agents, contractors, and other professionals in the industry.

7. Secure Insurance: Obtain insurance to protect your company from potential liability issues.

8. Set Up Your Office: Set up your office space and acquire the necessary equipment and software to manage your properties efficiently.

9. Implement Processes and Procedures: Develop processes and procedures for managing properties, handling clients, and maintaining financial records.

10. Launch Your Business: Once you have everything in place, launch your property management business in Alabama, and continuously evaluate your performance and make necessary adjustments.

It's always advisable to consult with a lawyer or any other relevant professional for specific business advice in your local area.

Hi @Timothy Allen, I really like your style and I completely agree - reverting back to house hacking whenever possible is never a bad decision as long as it works for the family. I'm glad to hear that you're considering this option for your next investment. I'd be more than happy to take a look at the numbers for you and run all the available comps. It sounds like you're close to making a great deal happen. Let me know how I can assist you!