All Forum Posts by: Jacob Blackett

Love the intro and welcome to the game! Sounds like you'll do great. Something that will catapult you in is establishing a working relationship with a real estate player who you respect. Make it a goal to get in the door no matter how, and you'll be off to the races. 

Just buy some municipal bonds & relax... ;) maybe pick up a couple solid apartments.. If you want to learn more about the different real estate options, then use a small portion of your capital to invest in operators with proven track record- use the investments to learn and meet the movers and shakers. Then see what makes sense to you and give yourself time to reflect on what you want to get into- no rush tho, a big "wrong" investment wouldn't taste good. 

Hey Andy, it's perfectly reasonable that you clearly communicate this to your PM/landlord. We give rent concessions from time to time because unfortunately things happen and it's just the right thing to do. I see your worst case as being a "no", I wouldn't let the rent hike idea stop you from asking for a reasonable concession- especially if your utility company can tell you your usage is high compared to similar units. 

Hey Justin, here is a google sheet that we use for our single family acquisitions. The nice thing about this is that all your leads are also tracked because you can add a ton of different properties since it's all on one-line. 

Let me know if you have any questions- enjoy & happy investing!

Hey Joe, if you are operating the LLC as a property management company, then a business liability policy is probably exactly what you're looking for. So, you'll want to look out for a business insurance provider. Start with your current insurance company and ask for any referrals if they don't have an option, and get at least a couple quotes. You should also be able to find reputable business insurance brokers via online searches. If you plan to scale your real estate holdings, an umbrella policy to cover your properties plus a good business liability policy on the mgmt co is a great way to go about this. Write up the lease between your mgmt co & the tenants.

Hey Laura, can you attach a screenshot of the provision in the contract? How much earnest money do you have at stake? Does your Realtor have the EMD or is it with the listing agent?

@Rao Mu Hi Rao! I'm happy to provide some input here. 

1. All correct. We provide our opinion of fair market value on the 10 properties, which is typically more than $500k. Together, we are invested all in between $350k and $380k. 

2. Exactly. The more ownership we can keep in our properties the better. Right now we charge a 10% management fee but we don't really see that as being a revenue center as we don't skimp when it comes to managing the properties the right way and hiring quality people to do this in house. 

3. All of the liability is on our company. Therefore, the biggest risk for the investors is the loss of principal. 

Everyone who chooses to partner with us see value in the passive aspect and partnership model.

Happy investing, Jacob

@Jay Hinrichs You're correct, Jay... From my experience and understanding, a net operating loss for an investor in our partnership structure would offset any other passive income that they might have, but it cannot offset active income e.g. W2 earnings. 

@Chet Sharma The property taxes and ALL other expenses are handled by Holdfolio. We file the tax return for the partnership at the end of each year and send everyone a K1 statement that shows exactly what your taxable income is that should be reported to the IRS- this income is reduced by a depreciation write-off. 

@Chet Sharma, I'm happy to. If we were to sell the properties after one year, then the profit from the sale would be taxed at a capital gains tax rate. If an investor sells their ownership after one year, then any gain would be taxed as capital gains. If an investor received their investment back through a refinance, then there are no tax consequences for the investor. All rent income collected during the investment is reduced by a depreciation write off and is taxed as passive rental income. 

Happy investing- Jake