All Forum Posts by: James Palmer

property managers I hadn't considered. Thank you!

If you have done commercial and apartment complexes, how did you go about finding the seller?

I'm thinking just try to find the owner of the property I want and ask to buy it.

What has worked for you?

Ask the real estate agent for comparables for the property then you can evaluate if they make sense. They can do a comparative market analysis. 

And just because they ask for 4 times the value, you can still offer what you think it is worth or what will give you the return you want. Reverse engineer it. Maybe ask the agent for the property how they got to that number. Why they believe it is worth that price. It's surprising just asking simple questions what people may tell you. 

You just have to judge if it makes sense for you. And it may not be the right property for you.

I really liked Frank Gallinelli's book on cashflow.

I'll look into that. Thanks Dennis!

@Phillip Scalise check out Mark Kohler YouTube videos and his podcast refresh your wealth. Sign up for newsletter for his free E book. He's a CPA and a tax attorney. I did a 30 minute consult with my specific questions and I thought it was helpful. His tax and legal playbook is good too.

He doesn't recommend getting a WY LLC. He recommends rentals in LLC for asset protection and get the LLC in the state that you have the rental. You can make a separate business entity as LLC for maybe paying yourself as property manager then change to an S-Corp if you make about >$30 - 40K a year. At that point there are some tax savings according to them.

https://www.youtube.com/watch?v=IPsgpnSVdsU

https://www.youtube.com/watch?v=p98mwgX3_WQ

Good luck!

Hi Spenser,

I feel that the time value of that money alone wouldn't be worth the deal. Just by inflation at say 3% a year, the future value of $40,000 today in 10 years will only be $13,333.32. And your expenses and taxes will increase with inflation at about 2% a year making your cash flow each year less and less. The savings in interest today and more principal paydown initially might be negated by higher taxes and expenses in the future and no way to bring your cashflow up to market value. Just imagine your cash flow decreasing 2% a year and property taxes and expenses increasing 2% a year. 

Look at book by Frank Gallinelli what every real estate investor needs to know about cash flow. The examples and math are great. 

Interesting idea of your tenant. Great deal for her. Not great for you. 

After you make an offer, then do you go back and analyze the deal further? how long does that take you?