All Forum Posts by: Brent Tice

No deal is better than a bad deal, be patient. New construction vant work out well if you hold long term if you are paying retail to build it.

Sean looking for some clarity, what do you mean by merging the LLC? Also why would you set one up to be a parent of the other,I haven't heard of that? Thanks!

Yes I think it is 3% or market value. I am trying to spread out risk by moving some properties. I did contact the bank as well about this. Thanks for your feedback.

I would like to transfer some properties in one LLC to another. A Title company told me I can transfer properties from one LLC to another by paying a 3% transfer fee + document preparation fees. Option #2 which is less expensive is to transfer from LLC to personal name then transfer to 2nd LLC and this will avoid the 3% transfer fee. Has anyone done option 2 before? Saving money would be great, bit I didn't know if this would increase my liability moving into my personal name for a short period of time? Would love your feedback, thanks!

We have 7 duplexes and i have assessed many duplexes and smaller properties like this.  I am hoping to move up and get larger apartments in the future

Expenses:

Mortgage: 625 (20% down on 30 year loan) (775/month for 20 year loan)

Taxes: 245
Insurance: $80
Lawn/Snow: 50
5% Vacancy 100
15% Repairs/Cap Ex: $285
7.5% Property Management:140

Total: $1525

rent:1895

Cash flow=370/month (4440/year)

4440/32500 (20% down plus 2500 closing costs)

13.6% return with property management on a 30 year loan at 4.75%

2640/32500 (20% down plus 2500 closing costs with 220/month cash flow)

8.1% return with property management on a 20 year loan at 4.75% with mortgage at 775/month

Hope that helps!

The BP calculator would be a good place to start.  Your insurance will probably be 80-100/month, get a quote from an agent.  Here is typically what I use for numbers, these are % of the rent collected. Vacancy 5%, Expenses (repairs and cap ex 13-15%), property management 7-8%.  Even if you plan to manage yourself always calculate property management to know the return if you were 100% hands off.  Also if you know property management runs about 140/month you have to decide if you want to manage it for that or let a company do it. 

It is always good to walk through houses when you can to see them.  The house is in a solid location but with it being just 2 bedroom the rent ceiling is probably not really very high if you plan to keep as a rental.  Resale value for a flip would have to be researched, connect with an agent on that to research comps (send me a message if you need a good agent to work with i can refer you to one).  If you can convert it to a 3 bedroom that is a huge plus for a rental or flip.  The triplex is probably like a C/C- neighborhood and the condition plays a big role in how much interest I have in older properties.  

Great question Hussain a agree with you. I just heard about it recently, I'm hoping to meet with an attorney after my vacation.

Nevada there is only 1 way to pierce the corporate veil, that is to intentionally try to deceive someone and pretty much rip them off.  I guess there have only been 3 times every in Nevada where the small business was sued and lost, and what they did was very obviously unethical and deceiving.  This is what they talked about at the seminar.