All Forum Posts by: Jerry W.
Jerry W. has started 26 posts and replied 4117 times.
Post: How to Get $10k/month Cash Flow: That's the Wrong Question

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
Hey @Steve Vaughan, I have gotten about 8 to 10 more roofs done this year, I am down to the ones where insurance paid almost nothing and they have issues like wooden shake shingles under the T locks. It has been really hot here so I am not doing roofs until we get back into the 80s hehe. It doesn't help that I bought about 5 more units since last year that also need roofs done. The real underlying question to the article is how not to make your real estate a second job if you want to quit your day job? My rentals are definitely a job. In talking last night they asked how many units we have. I didn't know, we started listing them and counting and got to over 40, it is actually a pretty big job for having a day job also.
Post: Attorney Charges - Any Thumb rules?

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Ned Carey, you changed your picture bud! It threw me for a bit.
Post: Vacation rental #4 in Fort Lauderdale 2/1 no pool

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
Congratulations, I currently have 2 VRs and intended to add at least one more this year then Covid hit and I switched my new house to a long term rental for a year.
Post: How to Get $10k/month Cash Flow: That's the Wrong Question

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Steve Vaughan, giving up some DIY? I am sure you will still have your boys mowing the lawn or painting some peeling paint. Eventually bud we realize we only have so many hours left in our lives and decide what are we going to do with those hours? Trade them for money by painting or mowing? Stand in a courtroom and argue which parent in a divorce should get to keep the kids? Maybe we want to spend them with grandkids instead of making a little more money we all know e will never spend because we are too frugal. I have come to the realization that I am the bottleneck in my real estate business. I have to have others doing work they can do so I can spend my time doing things they cannot do. My goal? Hire someone who can do all of my job.
I was talking with someone I was considering hiring last night, and my bad habits kicked in hehe, How many rental units it would take to generate money to support their salary?
Post: Newbie with questions before 1st buy! Entities / Depreciation?

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Jeffrey Sicat, there are so many variables when it comes to entity formation. First if you try to use an LLC the bank will charge you more interest as it is a commercial loan. Normally you cannot get a 30 year loan. You can start with a personal loan, but there is always some risk the lender will get upset if you transfer it to a corporation after you get your loan. Keep in mind that every layer of LLC protection brings with it a small cost and more book work. Each LLC needs it's own bank account, and its own set of books. For me time is very important, so fewer entities, at least in layers is important. I was running only 2 entities for over 40 units, but recently added another entity as there really is too much in one entity. It is really important to keep the books and finances separate. Comingling is one the most common ways to pierce the corporate veil. Undercapitalization is another. Of course keep good insurance. I really like the LLC for most things except flipping or wholesaling. If your bank rates are nearly the same for using an LLC as for personal use the LLC, if not buy in your name and try transferring it later, if the balk then put it back in your name. I wouldn't worry about a second level entity until you get a few up and running. It does occur to me that buying fix up property may help you the most for taxes, but unfortunately you have to put more money into them. Talk to your accountant, they are the best for tax planning. Either way good luck. The big advantage for me in having a real estate company was I lived off of my day job so it really accelerated my company growth. If you keep reinvesting all your income you grow rapidly. In the beginning we usually lost some money every year and had to [pitch in a few thousand at the end of the year to pay land taxes. Now it makes more money and is costing us more in taxes. Again ghood luck.
Post: Bank Account Options for REI

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Matthew Hammond, you are correct. I just use a plain checking account. I find I rarely keep enough in it to make a big difference. I do like the accounts some banks have where if you keep a certain minimum the account has no fees, another thing is I do use a money market savings account for my deposit money. That money is not required to be kept separate in my state but I choose to do it anyway. I only use one checking account per company. Now I have set up a few savings accounts where I am doing a special deal. I have sold or helped finance a property to my handyman os probably more confud a friend. They make an automatic transfer into the account, and the payments on the house get deducted automatically from the account. Rather than pay for an escrow account, I use the saving account as a form of mortgage servicer compliance for Dodd/Frank Act purposes. Sorry, this probably more confusing than helpful.
Post: Newbie with questions before 1st buy! Entities / Depreciation?

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Jeffrey Sicat, wow. I am actually uncomfortable answering any of your questions. You don't actually seem interested in buying an income property, but just buying a loss for depreciation. I don't think you are going to get what you are looking for with a single family home purchase. The cost of a cost segregation study for a sfr is going to be much higher than it is worth. You need to look at multifamily for huge tax breaks. I would not invest with that as my criteria, I want to invest to make money.
Post: Bank Account Options for REI

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Matthew Hammond, bud you have not even bought one house and are worrying about multiple accounts. Open one checking account and buy a house. Worry about the rest when you actually think about buying the second house.
Post: Money Source of America- Real or Scam?

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Michael Callaway, just saying we are legitimate, does not actually make you legitimate. Perhaps you could look at @Jay Hinrichs post and post things like your license number etc. to show you are in fact licensed. Having only 1 post does not give the post any legitimacy.
Post: Attorney Charges - Any Thumb rules?

- Investor
- Thermopolis, WY
- Posts 4,327
- Votes 4,008
@Rocky R., I am struggling to understand why you would want such an aggressive set up for doing a few rentals. A well done LLC or 2 at the most should be sufficient. An LLc can be set up in WY for fees of $150 in about 10 minutes online. You can buy a stock LLC book online for less than $100. Learning how to run an LLC is much more important so you don't lose your protection by comingling assets, alter ego etc. Most of the folks touting the complicated expensive protection programs are the folks selling them. None of the real movers and shakers on these sites use them. They buy insurance, use LLCs or other entities and run them right. Deeds run about $50 to $100 and a lawyer can easily do a dozen a day.