All Forum Posts by: Damon Tyler

I like Shiloh’s advice and would add the following: 1) Read the entire rich dad poor dad series 2) Read Lifeonaire 3) Read The millionaire next door Using Lifeonaire as a guide ensure you are learning to live a fulfilling life...(don’t let the money or the pursuit of money control you) use Rich Dad poor dad - Retire Young Retire Rich - to expand your context and learn how to leverage. Use the millionaire next door to understand that people that have money often do not look like it. Use leverage to get ahead but then secure that gain. Be willing to make mistake but learn from them and try to learn from others experience. If there is something you want then give that something away and see what happens over time. D

@William Shea Welcome to BP fellow traveler. You are on the same path I am on. Have you read the book Lifeonaire? I don’t like the $ ratio’s nor laws in MA. Like laws in NH. I own in VT, and upstate NY. Looking closely at Wi and Fl currently. Trying to flip here in Ma but the market is so crazy it’s so difficult to find (or make)opportunities. I’m an open book - ask me anything - If I can help I will. Feel free to private message me. D

Scott, Thanks for your reply. Ok - good to know about the LLC member being able to be a member of a different entity ...and S Corp member. Yes, (sadly) it is small potatoes and below the threshold. So now I guess it is a matter of which state to form in. I have several in Ma and I live in Ma so I may do that. Unless there is an advantage to form in the state (or outside of the state) where most of the property will be. In this case NY and Wi. Now more of a tax question. Any helpful / generous CPA’s in the BP family?

Charlie I appreciate your reply. Thats what we thought. For our initial analysis we ran comps and could not find much in the 768 sq ft department - so we went with 3 very slightly over 1,000 (like 1004) and they all sold between $220-$235k - so we thought this one which is newer and has 750+ downstairs all dry and nice (with walkout) would be at least $200. As part of the hard $ process we paid for a professional appraisal for current as is and after repair value - paid $750... appraiser took forever and a day.. bottom line appraisal came in low. She found a few 750 sq ft comps (in the not as good section of town) I do think this could be a great deal for someone who is local looking for a live in house hack or an all cash buyer. We broke a few of our rules when we pursued this... now I just want to help the owner get out. He has a reason not related to the house. Damon

I found this property off market and was going to flip using hard money. Property did not appraise at the value I needed in order to make the investment make sense. Lost a little money but got excellent education on specifics with a new hard money lender.

This may be a good investment for someone in the market looking for a live in sweat equity opportunity. Here is your opportunity to get it direct from the seller without a RE agent prior to it going on market. I am just trying to do the right thing and help the owner sell and get out from under the property. 

Property is newer but needs lots of cosmetics. Paint - flooring. Small foot print with 768 up and an additional 750 or so down. See Zillow. Pool and deck with nice yard in nice part of town. 

Seller wants out for what they have in. Seller has boys and pets. Seller bought property for $200K and owes $159K and would like to get out of it for that amount. Zillow Zestimate was $213k. Maybe we got a bad appraisal (neglected things like the cooling system), but it came in for under what I needed to justify hard money and the risk. I was looking for $200k ARV.

Property has passed title 5. Everything is all set to go. 

At this time, I am not representing the property. Please contact the owner Brent if interested in buying, PM me for his e-mail or go direct. Act now as the property will be under listing agreement shortly... again just trying to do the right thing and help the seller. 

When I have more free time I will be writing a blog to share my lessons learned. If I broke any BP rules (there seem to be many) please advise and I will adjust. 

Damon

I have asked two attorneys (that I have given work to) along with my CPA and can’t get a straight answer. Help. I need advice regarding entity structure. I would like it to be the safest and also the least costly as far as taxes. My next purchase is going to be a multi family (4 unit ~ not commercial yet) in upstate New York, however, others future purchases could be in other states (WI,FL). This purchase will be with a partner. I live in MA, one partner is in Ma and the other is in FL. My partners have an S Corp. registered in Florida state and they would like it (that S corp) to be a member of the new entity. If this were for flips I would set up an S corp ,however, we will be following a buy and hold strategy. I was planning to set up a Massachusetts LLC or LLP. If I created an LLP, I believe I could have the LLC (or S corp) be a member but I’m not sure if I can do that with an LLC, and I am unsure what the best structure may be to balance protection and taxes. Also not sure if a trust would be a good option. Any help is appreciated.

Hello! Did you find your house hack yet? I am investing (fix n flip) in Ma & RI and buy and hold in other states. I have a small RE team - Amanda is licensed in RI & Ma. Check out my bio and DM me if I can help. Will be forming local ‘BP’ (no selling) RE investment meetup soon.

Also - checkout BP podcast episode 170

Hey Zach - welcome to BP. I love the drive and entrepreneurial spirit you have. I would recommend do both - invest in real estate and find you own ‘thing’. Ping me if you want to talk business or real estate.

Hey Bill - welcome to the BP forums - like you I just recently decided to actually invest some time posting and reading. I am also “right around the corner” - feel free to ping me if you want to network and talk real estate.