All Forum Posts by: Dan Cournoyer

Tim - good for you for even making this post at age 14. Here’s my advice so you can be ready when you’re older. Stay active reading BP, read a book on real estate, hustle hard and keep saving, invest in some stocks, find a mentor and soak up as much knowledge as you can. Keep it up! Bright futures await

This is a great question. I’m a CPA and an investor in an LLC. I would include the wives because by marriage they already own half of what you own and if they do anything related to the business you can write it off easier. I would not be concerned with multiple home offices, the law has changed to a simple method that the irs is unlikely to question. Happy to connect and answer any other questions you have. Dan

I agree with the accountants who said distributing and contributing is totally fine.  Alternatively, you could put the money in a CD with any bank or credit union.  That's what I do, I take my reserves and leave them in CD's that mature in 1-2 years.  Gives you that 1.5%-2% range of interest and you can break the CD at any time.  The only thing you lose is the interest on the CD you had to break so split them up into $500 each and ideally you don't have to break them.

Good luck

Hi BiggerPockets community,

I have one rental that was purchased using a loan from my family.  Definitely helped me get a head start in the rental real estate world.  I'm holding for long term and everything has been going great.  I'm ready for rental #2 now.  I have money saved but do not have enough to buy in cash.  Let's assume I only have access to bank lending (please don't give suggestions saying I should find people willing to invest, I'd like to stick to a bank for now).  I have found the following to be true from banks lending money for investment properties....

1) Loan term will be 20-25 years (not the 30 years most personal residences are able to receive)

2) Interest rate is 1% ish higher than personal property loans

3) Down payment requirements are between 25%-30%

You can probably see where I'm going with this.  Other investors I know bought a place, lived in it for 1-2 years and now rent it out as an investment property.  The bank doesn't know or care because they're receiving the mortgage payments on time and there's no change of title or anything.

Here's my plan.......Can I purchase a second residence/vacation condo?  I have family that visits from out of state often so there is a legitimate reason to have the space for visitors when justifying with a bank.  If it worked I get lending at a reduced interest rate, I get 30 years, and my downpayment can be 20%.  I use the condo personally for 6 months and then rent it out as an investment property.  Worst case scenario I try and the lender/bank turns me away.  There may be some gray area here in terms of ethics so I'm interested to know what you think.  Is this too sketchy/unethical?  Do you know anyone that has done this before?  Anything I'm not considering?

Thank you for your help!!!

Dan

Amber Jones with Blu House Properties is a great agent if you need one.  She helped me with my first investment property purchase.  She has a great network of agents that know the area and gave me great advice on rentable areas and expectations from possible tenants.

Welcome Dan, I'm a CPA and new real estate investor in GR.  I'll be going to the Friday morning meetings as well, many have recommended them.  Good luck with your new venture.

@Mark F. I am in Grand Rapids, MI.  I have clients in Illinois, never been to Elgin but I'll be in Chicago this weekend.  I travel for clients as needed and work in my office in Michigan.  There's actually a great train from GR to Chicago that I've done for work.

Hi Brandon,

I'm an investor and CPA, been working in real estate tax accounting my entire career. I'd be happy to discuss on the phone for free.  Happy to answer any questions and see if I can help out in any way.  Let me know if you're interested.

Take care,

Dan

Hi James,

Not sure if you've already found a good tax accountant.  I'm new to the Bigger Pockets forums, just got my first rental so I'm learning as much as I can.  That being said, I've been a real estate tax accountant my entire career.  I don't live in your area but the majority of my clients are not in my area.  I'd be happy to connect and talk about your situation free of charge.  It might be the right fit.

Take care,

Dan

Hi everyone, I’m a new Bigger Pockets member, just started one of their books and I’ve been listening to the podcasts. Purchased my first condo rental a few months ago and it’s been going great. I’d like to continue to buy more rentals and connect with other investors, landlords, lenders, etc in the Grand Rapids area. If anyone has any tips or words of advice, I’m all ears. Thanks! Dan