All Forum Posts by: Dakoda Spencer

@Lance Lvovsky, what I'm trying to find out, is if it's worth me waiting a year to sell the place. I'm going to throw out some figurative numbers to make an example of:

Personal Income: $43,210
Selling the flip house for: $15,000
Tax Status: Married
Wife Income: $0

With these numbers, what would be the estimated savings of selling the house in a year versus tomorrow?

Hello BP, recently I picked up a really cheap property here in Ridgeley Wv, right across the river from Cumberland Md. I plan on selling it once I get it cleaned out, since I don't have the capital to get it in rent condition at the moment. My question has to do with taxes. I bought it from a private seller with cash. When I do sell it, how much will I have to pay in taxes? Should I try to hold it longer (I think than a year) to have it no longer considered short term capital gains? What would the tax rate be currently if I resold tomorrow? 

Hello BP Family. So I am looking into buying some land to build chicken houses on. The land is great, the numbers are working, I'm in a family of farmers so we understand all we need to know to know that this land is great for the purpose of poultry. One issue, the whole thing could fall apart if there's no water on the land. Currently there's no wells dug there. We know the seller of the land and have for a while. 

Here's my question: Can I have a stipulation that I will buy the land if there is more than X gallons per minute when a well is dug? We will pay for the well, of course. 

I'm really trying to think of a way that I can walk away from the purchase of the land if there's not enough water. It would really suck to be stuck with the land if I can't use it for the purpose of farming. 

Thanks BP! -Dakoda

@Zach Romashko Hey Zach. I was just going back over some old post and found this. How did/is your mailing campaign gone/going? Just looking to find an update. Thanks!

Hey Sean Wenzel ! Welcome to BP! I joined a while back and BP has been a great place to learn about real estate investing. The books mentioned to you are great, and I would recommend as well. I’m close to the Cumberland MD area, so if you ever have any questions about anything in my local area, just let me know. I might not know the answer, but I’ll help you find someone who does. Cheers!

Hello BP! 

When I was first starting out in this site, I had a hard time simply messaging people to ask questions. Taking action was difficult for me to learn to do. I wanted to acquire knowledge, but was afraid to talk to people. I have since gotten over that,and very glad I have. 

I have a copy of the book "The E-Myth Revisited" by Michael E. Gerber and I'm done going through it.

I would like to challenge someone that has trouble taking action to reach out to me for this book. I will send them this book and pay for shipping, so absolutely no costs come out of pocket for whoever reaches out to me. I may even add another book or two!

This is typically a cheap book on amazon, but this post isn't about saving money, it's about taking action!

There have been a lot of people who have given me much knowledge, wisdom, and encouragement from this site. I would like to pass that on for someone else!

You have no excuse to not message me for this book! So take action and reach out! 

Thanks BP!
Dakoda Spencer

Here is a cool video that quickly goes over the content in the E-Myth

https://www.youtube.com/watch?v=rixrWUI3Nzc

@Ryan Tyree

Welcome to BP! I live about 1.5 hours from Morgantown and have it as an alert on here. I haven't done any deals yet, but I have done a good bit of research. Here is my response to your questions:

For the generic lease, I would strongly suggest you get an attorney to either build you one or to look over a generic one to make it fit you and your needs. 

I had recently wondered the same thing about residential vs commercial loans and this is what I found. A residential loan gives you better interest rates and longer amortization periods. This in turn, of course, gives you more cash flow per month. You will NOT be able to get a residential loan on a property that has 5 or more units. These properties are considered commercial and don't get their value based off of comps, but rather from their numbers (income, expenses, etc). Commercial loans are typically much shorter terms. I think 15 years is about the longest most can get, if that. They also typically have balloon payments are the end and are ARM loans. Higher down payments are required for them as well. If you wish to buy a property using an LLC for additional protection, unless you are the sole owner of that LLC, you will need to use a commercial loan. If you need to purchase a property as an induvial without the protection of an LLC, then a good umbrella insurance plan would be a good fit. By the sound of your situation, you should probably just buy property using residential loans set up on shorter terms, as long as the numbers make sense of course.

I am of course not giving you any advice in any way. This is just the info that I have come to find over the years. I hope this helps!

PS: I know there is a meet-up of real estate investors in the Morgantown area and I hear that it's pretty good. 

Connie Bhimireddy is the one you should contact about that. Here is a link to her profile here on BP!

https://www.biggerpockets.com/users/SitPretty

Best of luck,
Dakoda Spencer

Hey BP!

My partner and I are looking to buy our first rental property within the next 6 months and are looking for some clarification. We are ready to take some action!

We are looking to get started with a 2-4 unit multi-family and are wondering the best way to do it. We agreed upon a 2-4 unit property since I have learned they are typically easier to finance, since they aren't considered commercial.

We both agree that we would like to split the liability equally so that we both have the same amount of skin in the game. We were thinking about simply forming an LLC and using that to buy the property. After doing some more research, I'm finding out more of the pros and cons of using an LLC within REI, and now I'm wondering if there are any other options.

We like that an LLC would cover us in case something would happen. I have a house that has some equity, that's my main concern. But, I don't like that we would have to use a commercial loan to buy our MF, even if it's a 4 plex or less. I'm just not too familiar to the terms of commercial RE.

Does anyone have any suggestions as to the best way that we could buy a property using traditional financing but still be equally liable? Of course, we would like to be as covered as we can as well.

I have seen where people buy a property using their personal info and then move it to an LLC, but we don't want to risk the due on sale clause getting triggered on us.

Finances: Together we will have enough money for the down payment and rehab work to get the property rent-able for our market. I have a credit score in the 700-725 range. He isn't sure on his at the moment.

Area: We are looking in the Cumberland / Frostburg Maryland area. We would rather stay closer to Frostburg, since there seem to be a higher quality tenant pool there. We have also tossed around the notion of going farther away to places like Martinsburg Wv, but are wanting to stay close if we can.

Looking forward to start meeting people at the RE meetups!
-Dakoda

Hello,

My friend and I have been discussing it for a while and have finally decided to partner together to do real estate. We are looking for investors to meet up with that are close to our area to network with. 

We are looking to invest within 45 minutes of Cumberland Md. That includes Frostburg Md, Friendsville Md, Hancock Md, and even up to Bedford Pa. 

We are primarily looking to get into small multi-family rentals and have also been considering mobile homes as well.

If anyone invest in these areas, or knows of someone else that does, please let me know! Thanks!

-Dakoda

Hello BP!

Some family members and myself have recently become interested in the Va Beach (Virginia Beach) area. I was wondering if anyone had any tips on good real estate agents for the area. 

Anyone have any suggestions on areas to avoid or areas that make more sense to invest in? Of course, we would like to stay as close to the beach as we can. We wouldn't be opposed to searching in other beach areas through NC (Nags Head, Duck, etc.) either.

We would like to have 2-4 units, but it all depends on the numbers.

Thanks all!
-Dakoda