All Forum Posts by: Jake Baker

@Jordan Carter

You should definitely hire a CPA that specializes in real estate. @Account Closed are great options. As you grow your portfolio, you may want to consider hiring a bookkeeper if accounting isn't your thing. 

@Philip Feinstein

Most CPAs charge separately for tax prep and advisory services. One thing to consider for your mid-sized portfolio is to hire a bookkeeper. This will ensure deductions don't slip through the cracks.

@Mary Patton

We structure out deals 50/50: 

50% effort & 50% money.

You can take fees and preferred returns before you split the profits 50/50. Here's what I mean:

Your investor gets an agreed upon preferred return on their money... let's say 8%

If I am the contractor and agent on the deal, I make a 10% fee on the rehab costs and %2 commission on the sale. 

Anything left over gets split. That way everyone is getting paid for their value before the split. 

@Kyle Williams

You can absolutely invest out of state. Be sure that you have plenty of reserves and you will need to build a core team. A great first step is to find an investor-friendly real estate agent. They will be able to point you to contractors and a property manager. 

The ADR went down due it increased vacancy due to increased listings because all the STRs without licences shifted to MTR. 

The ADR of my STR skyrocketed for the opposite reason. It's bringing in $6k in revenue but it is in the heart of little italy.

@Susie C.

These seem normal to me. I would get a quote from multiple lenders. 

@Ashley Larsen

My company does 15-20 flips/brrrs per year in Jacksonville FL. We use DSCR loans to refinance our BRRRRs.

We use Hard money for most of the funding of the purchase price and rehab. We raise money from investors to cover the difference and holding costs. While we give up equity by doing this, this allows us to do as many projects as our deal flow allows us.

OPM - Other Peoples Money

@Reagan C.

The best option is House Hacking for your first property. You get the best financing, other people pay down your mortgage, and you can live there for 2 years to take advantage of the 2 of the last 5 year rule. 

When selling a primary residence property, capital gains from the sale can be deducted from the seller's owed taxes if the seller has lived in the property themselves for at least 2 of the previous 5 years leading up to the sale. That is the 2-out-of-5-years rule, in short.

@Joseph Heath

Congrats on closing your first property!

Real estate investing can be addicting. Make sure you have enough reserves set aside for this one before you move on. 

Once you have a few deals under your belt, you should consider raising money. OPM - other peoples money

Jacksonville Florda Flip/BRRRR 20 houses - Same goal as last year but improved margins. Scaling myself out of the business more. Keep 8 of them as BRRRRs.

San Diego Airbnbs - Buy a 3rd. Increase margins on the other 2.

BookkeepingRE - Scale my bookkeeping business that is focused on Real Estate professionals. Hire my first full-time employee in Q2.