All Forum Posts by: Brian Bradley

The good thing about investing in real estate as another counter weight to just stocks and bonds is that you can adjust your holding as the market adjusts. You have more options and avenues. In down markets you get great deals, in up markets you hunt around more and shift what your looking for and hold and rent longer. Every investment segment will have bubbles, you just analyze your market and what rue value is and know before you make an offer if you are purchasing to flip, rent, short term, long term, refinance, etc. Have a plan before every deal, and have multiple exit strategies (refinance, renting, wholesale, etc). But DO NOT get stuck in the research paralysis mindset. Eventually you just need to jump and trust in what you have done and the team you built, and then make adjustments as you go. Your team should be able to educate you and help you along the way. 

Go read the book's (Rich Dad Poor Dad, The Cash Flow Quadrant, The Richest Man In Babylon, Tax Free Wealth, and Cold Hard Truth by Kevin O'Leary). You will then get a good start of the mindset of what millionaire's look for, how they use other peoples money and leverage, and how their minds analyze deals. Systemizing, creating businesses, investing,  using the tax code to its max advantage and investing where the government provides incentives and deductions. Have your money work for you, and your money's money. 

@Shiloh Lundahl I think I read that same negative post. Don't let naysayers discourage you. Just do your homework, crunch and stick to your numbers. Build a good team to surround yourself with, and create checks and balances with your team members. 

You don't need a local attorney to create an LLC. An LLC is a company. You live in AZ. Talk to your local AZ attorney and CPA. Talk to your CPA over the financially and tax implications of different formation options. Your CPA and or Attorney can then form the LLC for you in AZ. You can then transfer the property into the LLC or s Corp. I would ask your lender if they mind if you transfer the property into your company before you do this to avoid any issue with a loan acceleration clause. But you can have a company formed in any State and have that company hold property from any state.

I would hire, or at least consult with, an attorney and a civil engineering firm. Your land division application is going to take lots of detail. I am a strong believer that an investors job is to find the deals, and then have their team manage the details. You will have to have review and approval of your preliminary plan, review and approval of final plat. Each stage will have a lot of detail that will need to be done correctly the first time for your project to not be delayed. Best of luck. 

I think the information, books and forum here will help you be a more informed investor. No deal is 100%. No team is 100%. Investing will hav ups and downs. You got to know why you lost. Analyze yourself, your team, and your deal and learn from it and move on. I get frustration and venting. But it really serves no purpose since blaming others will not help you grow and make more money. Really dig into your numbers on your deals. See where you are going wrong or who is the weak link on your team. Create checks and balances with all information and quotes you get. Hold your venders and agents accountable and to each other. Fix it. Don’t just ***** about it.

Yes. I know a lot. Call and talk to your banks and local lenders. For example, my back will lend to be below 20% for an investment property, even as low as 5 - 3.5, but the catch where I invest is what county the property is in and the cost of the property. Let’s say I wanted to invest in a property in my local county, if the property was below 425k the bank has no issue with a 5% down and finance the rest. But if I was investing in the county next to mine the banks have no preference, so long as not less tan 3.5%. Also, don’t let not having finding discourage you if that’s the case. If you have a deal, or a very sound business plan, money will find you. You can always find financing so long as the lender finds your deal will give a return.

I’m late to the question on this so not sure where your at. But you are in a commingling and accounting mess. Talk to your attorney to see what your bylaws and incorporation papers you drafted state and your operating agreement. Then call your CPA. Commingling accounts is a sure way to piece your vail through the eyes of the IRS. Even if your own the business or not. The money is the LLC and you need to follow the laws on funds are deposited and distributed and need to back track all your expenditures and accounting. Good lesson on never to commingle funds personally or LLC to LLC going forward.

Great book. Very easy read. Practical advice for every day Joe investor and full time investors. Know your tax’s and how to invest how the government creates incentives and it’s full deductions.

Eric, good question. You can create an LLC then elect to be treated and takes like an S Corp. the choice between c or s is your election decision. Or you can create a C Corp and then transition to a S Corp. talk to your CPA before any of this to know your tax implications and annual maintenance cost of your corporation, not just your property. Another cleaner option is for one of you to purchase the property 100% and then your other partner be a lender for their share. No matter which way you go you should ALWAYS draw up a partnership agreement between you all. Talk to your attorney about that or get one. Never do good faith hand shake deals. Investing is not 100% guaranteed and the partnership agreement will layout the agreement and terms, who is contributing what, how disbursement’s are to be made, proceeds of sell, etc and what to do and who gets what if all hell goes on and it’s a bad investment. Always protect and plan for the worst, do your homework and know your numbers. Good luck. CPA and Attorney will be your best friend on this.

You can find deals in any market. You just need to look and be patient. Don’t limit yourself just to where you live. If your market is high and you can’t enter or rent won’t cover your costs, look at other markets.