All Forum Posts by: Jeff Greenberg

@Brian Burke thanks, I will have check my tally of IRA's.

The LLC's can purchase as a TIC and both be on the P&S and title. @Alisha Decoteau sorry that I missed you when I was in Decatur last month.

@Brian Adams I hadn't thought about the investors that invested with their IRAs.  So they would not reap any benefit?  It still should be of benefit for those that invested with non tax deferred funds.  I will have to look at my percentages of ownership and determine if it is worth it.

Has anyone done a cost segregation study, and what are the pros and cons?  Has anyone used Engineered Tax Services for this study?  It all looks good on paper, but I wanted to see if anyone has some real world experience with this.  @Brian Adams@Brian Burke @Todd Dexheimer @David Thompson @Amanda Han

Key words:Cost segregation, taxes, depreciation, accelerated depreciation

@Carol Bloom That may be the case on the smaller MF. Typically we don't get asked for that. I do believe that the lenders LOI stands for Letter of Interest. This is different from the LOI Letter of Intent, that we submit to the seller.

I have never been asked for a pre approval letter.  Some of my team has been asked for a proof of funds.  This usually happens when the broker thinks that they are inexperienced.    The broker wants to make sure that you can close and not wasting their time.

It sounds like what you are doing may be right, but the location is wrong.  It is very difficult to cashflow in California, especially in this stage of the market cycle.

@Brian Burke you're forgiven.

@Brian Burke I have alway admired how you can cut to the heart of a conversation and make is as clear as a bell.  I suppose that is why you have more votes than posts.  

However, I had to read your post three times to try to figure out how net income came in, confusing the issue.  I guessing that if it confused me, other will follow suit.

@Adam Franco you explanation was great except for two points. One Brian pointed out with depreciation. You did a great job explaining EGI, but then "If we subtract expenses from our Gross Income we get our NOI" you used gross income instead of EGI.

Brian used the term cash on cash which of course includes ALL of the funds committed to the deal, not including the debt side.  This could include closing cost, syndication costs, up front reserves for capex budget, down payment(equity part of the acquisition), lenders fees, etc. Amazingly when a broker typically calculates the cash on cash, they usually only use the down payment.

Don't be concerned that you may not be the most knowledgeable person in the room. Look at all of the podcasters that started podcasting in order be able to interview people with more knowledge than they were. I do meetups with mostly investors interested in SFH and, other than my own home, I have never owned or flipped one.