All Forum Posts by: Fernando Parker

Hi Jackson,

I'm not sure if Zillow has a ground operation in bunch of cities or if they just use publicly available data to populate their site. I generally take most of it with a grain of salt except for crime stats, tax records, purchase history, and comp sales. The thing with Memphis is that there are MANY factors that weigh into the value of any given property, so you can't just narrow it down to a zip code or even necessarily a part of town.

My suggestion to you is to find a solid contact there (there are plenty in this forum) who's been around the block, take a week off and actually go to Memphis to get the real street by street skinny. Hope that helps. All the best in your investments.

@Daniel Hyman, @Justin Windham, @Natalie Kolodij you all have officially guilted me into a CPA consultation :). I've scheduled one for this week. Thanks for the tips!

@Steven Hickox thanks for that. I do have a credit card for my LLC, and I've already been working that angle. Is there a specific method that you use for keeping your miles logged?

Hello Everyone. Can anyone speak to the types of items which I should buy or expense in preparation for next year's tax return? I started my LLC last month and have 2 properties in Memphis in it, but not enough to merit paying for CPA consult just yet. I expect to have a total of 5 properties in my portfolio by the end of this year. My LLC's taxable operating months will be Oct 2016 - Dec 2016 for this year. Am I over thinking this, or should I start acquiring things/services to write off?

Cheng Bin Zhang , let me first admit that I am not an economist. However, both sound economic theory and conventional wisdom suggest that a correction is coming in the US real estate market. The good news is that it hardly matters. The difference between whatever correction happens in the coming year and the recession from a few years back is that very few people saw '08 coming AND had the knowledge/means to get out before it was too late. We've all heard stories about the aftermath. If you listened to those stories and heeded the lessons learned, you'll know that what's most important right now (and always) is that you BUY SMART. There is never a bad time for a really good deal. Do your homework and due diligence when running your numbers so that the effects of whatever is coming will be negligible. I am not afraid of what's coming and you shouldn't be either. I'm actually closing on 3 deals here in the next few days. When the correction gets here, have as much cash as you can hustle up and be ready to take advantage of it. All the best... -Fernando

I stay away from investing in Dubai mostly because of the fickle nature of the regulatory environment and questionable building infrastructure. I've lived here for three years now and I've concluded that there are far safer and equally or more profitibale options for my money.

As far as the Memphis market goes, there are a couple of titans on this thread who can better help you understand the areas. @Douglas Skipworth @James Martin, and @Dean Letfus are just a few. Good luck!

Welcome Tamaria! Memphis is an awesome place to learn the ropes. Make sure you get connected with the Memphis Investors Group. There's a enormous wealth of experience there. Best of luck on your real estate goals!!!

@Guillaume Rouleau I'm not so sure that a separate LLC for each property is practical, but I can tell you for sure that such a plan would be expensive. When running your numbers for a property, you'd have to include the cost of the setup of the respective LLC - every time. I used LegalZoom.com to set up mine, and it cost me roughly $750 USD. After you get all those LLC's set up, you'll have to find banks for them so that you transact formally amongst your tenants/vendors. Lastly, I'm neither a lawyer nor a CPA, but the costs associated with establishing/counseling/accounting for such a complex empire would likely be substantial. You might want to revisit that idea, or seek some clarity from the lawyer who gave you that info. Feel free to throw this on another BP thread if you want a broader community opinion on this.

To answer your question about why I'm choosing Memphis: it's really a matter of convenience. I have family there, and I can know the city and the areas well. Living in Dubai, it's a challenge dealing with the myriad of issues that can happen on the ground, and knowing that I can tap into a support system there without having to pay a whole lot makes the area even more attractive. And as an added bonus, according to a recent BP survey, Memphis is the number 1 market in the US for strong rent-to-value ratios. If you're serious about Memphis, I have a couple of guys that I can connect you with. PM me

@Arvin Daeizadeh thanks for the info!!! I'd love to come to one of the meet ups. My wife and I have actually thought about buying that game. PM me and I'll email give my contact info here. I'd also love to know more about the banks you mentioned. Looking forward to meeting you!

-Fernando

Thanks everyone for the input. Much appreciated. Will keep everyone posted on the bank I end up with. I think my situation may be unique because I don't need any money from the bank, and likely won't need any until around this time next year. Hopefully I'll be able to build enough repoire with them in that time.