All Forum Posts by: Sean Price

Also, make sure that your cashflow levels are calculated after allowing for all expenses. Again, read the 50% and 2% rule info. I think that the mistake that a lot of people make is that they look at cashflow as being the difference between the mortgage payment and the rent collected. There are more expenses that go into running a rental property so if you underestimate expenses and get into a non cash flow situation because of that, it could end up being a bad deal. Know your numbers and make sure that you buy based on logical conclusions based on numbers and you should be good.

By the way, I like the goal of 15 properties in 5 years. Do you intend to finance them all yourself, pay cash, private investors, or use seller financing as your strategy?

Now my answer is admittedly going to be theoretical, I only have one rental property… That reflect property.

But in my research and coming up with my strategies here is what I think:

1. whenever you purchase a rental you need to make sure that the numbers work and that you have room to have a property management company handle the rental for you. The process needs to be systemized… So that it is not taking time out of your day, and you're not the one answering phone calls at two in the morning.

2. You need to think in terms on the return on investment. If you can earn anywhere from 18 to 25% on your money, then initially you will have your money back within a short period of time. Then future cash flow is nothing but a profit. In other words of infinite return on your money.

3. I think that if you are getting into the rental game, it needs to be a long-term commitment with a lot of rental properties… So that the passive income ends up being something significant enough for you to reap the benefits when you're ready to retire.

4. I think that flipping is a great way to begin and can be important in providing the Capitol for your rental investments. In the end flipping is a business that takes your time so when you stop the money stops. This is why I think flipping will provide the money to build the investment portfolio

Tis is my view, but I am a business owner and my end game in real estate is to be able to go on vacation and not have my income effected. I think the only way to reach that goal in real estate is going to be rentals....or note investing.

Hope this makes sense...just my .02

Sent from my iPad so please excuse any spelling errors.

I am new to Real Estate investing but have been in business for about 10 years. I was told when I first started in business that a good accountant was critical. I had one for 4 years....then found a good one who redid all of my previous tax returns, found me an extra $8k in refunds and has been a strong asset to the point of never owing taxes. I feel that an accountant and a good lawyer are critical....but the key is good....not just an accountant. The time and MONEY that you save will be well worth the investment, IMHO.

Sean

Bump

Definately agree with the sales approach. They want $1000 to set up the LLC for me. I confronted the salesman about the difference and he said that in Florida it was not difficult to pierce the vail to get the assets, and that Nevada was the only state that had this protection. Do you know anything about that?

Rehab and flip in the beginning. Tis LLC will stay for that purpose then I will set up another for buy and hold when the time comes.

I have been doing a lot of research and it seems that a lot of the big guys recommend setting up your LLC and coorporations in Nevada. I am in Florida, is it really that important to do this and is the extra expense worth it?

Thanks in advance

Thanks for the input....that is what I thought. And yes they did have my consent on the floors and it was at their expense. I think I will just refund the deposit to avoid the hassles.

Thanks everyone.

Sean

I had a tenant that just moved out of a condo after he and his family (including 4 kids) lived there for 3 years.

The tenant always paid rent on time, and had a good rental history. While they lived there, they realized that the carpet was not going to hold up to wear and tear (it was a new condo with very light inexpensive construction grade carpet) so they replaced the entire floor with laminant flooring except the two kids bedrooms.)

When they moved out, I needed to go in and replace the remaining two rooms of carpet and I needed to basically repaint the entire condo. Other than a couple of places where the kids had drawn on the wall, the wall just needed to be painted because it was showing signs of wear and we needed to patche the wholes in the wall where they had things hung.

Is this considered normal wear and tear or can I deduct the carpet and pain/labor from their rental deposit?

I am in Florida.

Thanks.

I am in a fortune builders seminar and they just showed us a technology where you have a prospective buyer send you a text off of your sign and then the receive an auto text response and an automatic phone call. Does anyone use this technology and if so who do you use?