All Forum Posts by: Carl Millsap

@Melanie Moore the plan is good, but here is another option:

1. Use the IRS $ to pay down / off credit card debt.

2. Refinance your house to a lower interest if you have equity. Do your #s. Only re-fi for 80% of the value, and make sure the rent will cover, mortgage, taxes, insurance, maintenance and property management. Set aside some $ from the refi for maintenance i.e. HVAC repair replacement depending on age, and the roof.

3. Use $ from re-fi as downpayment on a duplex in the DFW area. Live in one side, rent the other side out. 

Benefit: You'll have 2 income producing properties, increased tax deductions, and faster path to becoming debt free.

@Danny Bower

A. What is the best way to figure out rehab cost on any property?

 Two Things:

 1. Get an inspection on the property. The inspector's report will give you a good ideal of what you need to fix. Give that list to the contractors in addition to any upgrades you want to make.

2. Get quotes from 3 contractors. This will give you an ideal of materials and labor.

Don't think you can do it cheaper and don't use the lowest bid.

B. How do I find a list of good contractors to call?

1. Ask for referrals.

2. Visit the Pro desk at Lowe's, Home Depot, Menards etc. sometimes they have cards for contractors.

3. Visit the hardware stores early in the am, a lot of contractors are in picking up supplies. Get information from their vehicles, or approach them as you walk the aisle. They never turn away prospective business.

Make sure you vet each contractor. Just because they are "doing work" doesn't mean its good work.

3. Do I call stores and ask how much materials are?

When you get your materials list from the contractors visit the pro desk at Lowe's Home Depot Etc. they can work up a quote for you.

Just a young agent in South Jersey trying to learn🤙. Any meetups I should attend?

@Matthew Wright the long and short of it...

If she has a doctor's note stating she needs a dog for mental health reason it's covered under the American Disabilities Act. We just walked this dog with our lawyer as we've had the same issue recently. 

Essentially, you wouldn't deny someone w/ a wheelchair to rent from you, and you wouldn't charge them a fee for said wheelchair. An ESA (emotional support animal) is the same as a wheelchair.

You can deduct from their deposit for any damage the animal causes, but you can't charge a pet deposit or deny them if otherwise qualified to be in the unit. I know this is a current tenant just giving you the roadmap for the future.

Double check with your legal rep.....I'm not a lawyer.

@Christian Mckinney visit your local realtor's office and get a purchase agreement. It's a good start and in theory complies with local and State laws. 

Network with other investors, the local meet-up may have a file share for the investors.

@Monique Dunmore research multifamily syndication. 

A couple podcast:

Apartment Building Investing w/ Michael Blank

Multifamily Investing w/ Charles Dobens

Real Estate Investing for Cash Flow w/ Kevin Bupp

@Anne Caldwell here are a couple considerations:

1. With the current environment (moratorium), I wouldn't automatically renew a lease for 12 months. A month to month lease allows you flexibility.

2.  If they have broken up, I'd get a notarized letter signed by both stating she will be removed from the lease and he will all responsibility for the property. If she is on the lease in most areas she has a right to the property. 

3. I would re-qualify (verify) his income to ensure he can meet the financial requirements. If he does then execute a new month to month lease.

@Yuki Sun  

There are a lot of ways to get deals.....but the market is HOT right now. Homes are selling for a premium in most markets so getting a home from the MLS below market in order to flip will probably be a challenge.

Here are a few ways to find homes:

1. Drive your market, look for run down homes. Look up the owners. If the owners address doesn't match the address of the home it's a good chance it's a rental. Send them a letter offering to buy it.

2. Look up probate cases. Send a letter to family members of the deceased. Research this, use tact, people inherit homes they never intend to occupy, and they don't want to become landlords.

3. Call your County / City tax office for a copy of delinquent property taxes. Drive around look at the homes. Send the owners a letter.

These are just a few ways to find homes, and potentially buy below market prices in order to have a successful flip.

As for requesting a refund from the coaching company unless they failed to provide you the information, or provided some type of guarantee it may be hard to get your $ back. 

I've seen one coaching program that guarantees your first deal within a year,  if you don't complete a deal within that time frame they continue to work with you until you get it.

Good luck.

@James Edward partnerships are a great tool.....depending on a few things: 

1. Why do you want to partner? 

2. What other options do you have to achieve the same goal / end state?

3. Have you set YOUR partnership criteria? i.e. We only partner with someone if:

   a. We don't have the capital necessary to do the deal ourself.   

    b. There is enough profit to justify partnering.

    c. We have controlling interest. ie. ownership is 51/49 but profits & losses are split 50/50.

This is our decision process for partnership, what is yours?

4. Put everything in writing BEFORE you partner. Clearly spell out responsibilities expectations etc.

5. Add a cookie clause. If the partnership isn't working out.....partner A can offer to buy partner B out. Partner B now has the option to sell OR buy Partner A out.

     a. Each partner hires their own independent appraiser to determine value.

     b. The 2 appraisers select a 3rd appraiser to determine value. 

6. The partnership is its own entity. Don't use your current company / assets for the partnership.

7. See question #1.

@Lynell Sonoda as I read here is what I understand:

1. You will use this as your primary residence and rent out the ADU for some period of time.

2. You will eventually move out of the 3/2 and rent that out as well which is where the conflict comes in with the city ordinance.

If the above is accurate:

1. You stated most of the applications submitted to the board were approved AND the process is fairly simple. 

  a. Ask the current owner to apply and make the purchase contingent on that. 

  b. Close and apply for the rezoning permit / apply for an exception. Don't assume yours won't be approved because it's close to the city etc. It may be as simple as the R1 classification was assigned when the original 3/2 was built and someone added the 1/1. 

2. Talk with a legal professional to see if "leasing the home w/ an option to buy" to one of the tenants will remove the "rent to one family" conflict if the permit is denied. 

3. Set both tenants on the same lease with an agreement stating the rent will be split 70/30 or whatever the ratio works out to be. 

4. Tenant in the 3/2 subleases to the tenant in the 1/1. This way you as the owner have only "rented" to one family.

There are options, the zoning classification is the boundary. Most of the time we see it as an either you're in compliance or you're not.  

The successful investor will see it as how do I play within the limits of the boundaries. You're a successful investor.

If the numbers work find a way to make it work. If you don't someone else will.

Good luck.

@Wade Penner, as long as you collect the deposit, and 1st month prior to the tenant moving in I don't see an issue w/ collecting via Cozy. 

I think we've done something similar w/o issue.

Since the applicant is apply and holding the property w/o immediate possession we add a clause that states the deposit is non-refundable until they move in. Just in case they decide not to move in for some reason it covers our cost of holding the property / taking it off the market. Once they move in, the deposit is refundable per the lease.