All Forum Posts by: Kurt Gardner

@Gerald Peters I'm pretty sure the "secret" is out, ha!

be well, sir.

@Eric DeVito you have heard some good advice here, and ultimately, you are right about it being a decision you need to make.  The suggestions are given, in many cases, having made some unwise choices personally or having seen them made.  Nobody here has any vested interest in your failure or success except that with your success we can all celebrate with you...with failure, we all are sad and wish we could have given you advice before you stepped off the ledge.

I have been tempted to use a HELOC in the same manner, and i have resisted because where i live is not worth risking. I do not want to end up financially busted in my investments AND homeless. Investments are investments, and expenses are what you pay to live comfortably...do not mix them.

In an almost contradictory position, I am planning to use a HELOC (3.5% no costs and only taking my LTV on my primary to 65%) to pay down some very high interest payments. After four years of leveraging and pushing to grow, this next year we are pulling back - ignoring the desire to buy more and eliminating some liabilities. I won't be paying any less each month on my expenses, but i will be reducing the principle on what i owe much faster.

By my calculations, within a year, we will be able to use cash again for our next few purchases, be in a much better debt to income ratio, and still have the availability to use a significant amount of the HELOC if necessary (all my numbers have us paying off the HELOC within 18-24 months using the same amount of money I'm paying monthly right now, just more efficiently).

I know it might seem contrary. In my world, I see the value of the HELOC as a debt reduction strategy, not an investment strategy, and it makes sense in my situation. After you get a couple properties under your belt, you can leverage them (if you buy right), and that is a much more secure and stable platform to build your business.

I hope you do well, and I look forward to hearing your success stories! 

@Mike Dymski will do.

@Gerald Peters if i had not had the experience with the preparer up until two years ago, i would weigh in whole heartedly with your sentiment (H&R Block and then the most recent one really turned my stomach).  I was very blessed and spoiled with the woman who so professionally prepared, counseled and just chatted with me as a friend before, that my standards are now set extremely high.  I'm sure they exist, and I'm weighing the cost of my time and the fees against the trouble to find someone who is that good, again...(lol, i sound like a lamenting love song, right?).

@Jay Hinrichs i see that humblebrag...and i envy your sweet gardening time!

@Jim Kennedy @Loren Clive @Mike Cumbie @William Lewis @Keith N. thank you.  can you address some of my previous questions regarding what your situation is and approximately what you pay/are willing to pay for these services?

@Derek Daun that is a sweet deal and I'm also a little envious of that sweet gig!

@Deanna McCormick you are EXACTLY where i am now...looking ahead and trying to do the value to return calculations...with this conversation, i am really leaning toward the "get a pro" aspect again...I'm just not sure I'm ready to "put myself out in the dating scene again!"

@Jana Cain yup.  i have taken apart so many things in my life and put them back together with leftover screws and bolts...i do not want to face any horror stories with my finances.  I have found that having those leftovers does NOT mean i made the item better and more efficient!

@Brandon Hall scale is the big question for me, here, and that's a great point.  There is NO WAY I'd ever consider doing my own taxes in the "Jay-realm."  I'm just getting to a point where we are looking seriously into a property management option.  I'm weighing the value of buying back my time so i can pursue future investment options more efficiently.  I know it's a matter of priority, margin and long-term security.  So far, all three of those have been solid, and i am a little loathe to mess up one for the sake of another (eg. look seriously into PM and offset some of that cost by doing my own taxes).  Just writing that seems like an action i would look back on and say, "and that's where it started getting messy..."  hmmmmm.

@Gita Faust you have a greater love for numbers than i have, i suspect!  If you do what you love, however, it's more fun, right?

Thank you all, again, for such a well chronicled discussion and summary of the good, the bad, and the ugly (baby brain syndrome, that is priceless!).

and @Sean H., don't want to exclude a member of my advisory board!

you guys all get your salary doubled this year!

Ok, @Justin Fox and @Mike Dymski hilarious stuff.  Thanks guys!

One of the biggest takeaways I've seen so far is the risk to the business to go it alone @Scott Vance @Andrew Ware @Jay Hinrichs @Natalie Kolodij.

An audit can be a scary thing, not because I'm afraid they'll find something I did unscrupulously, but something stupidly filed that will bite me in the end.

I must say I cringe at the figures Jay mentioned, however, I've always proclaimed I would love to be the person who pays over $100k in taxes (it only points to a larger number).

I'm losing some of my gumption for doing this myself and feeling a little more impetus to seek a new professional.  As I previously mentioned, the one I used the last two years left me wanting for that "consultation" and "service" factor and instead gave me a big ole bill that I wasn't prepared for.

Thank you, all, for the time and great advice. 

The dialectic in this forum is why I very much LOVE this place.  There can be very passionate positions and even a spark or two, but 99% of the people who actively participate are genuine, good, and helpful people.

Thank you all for maintaining this standard and decorum.

@Tim Greenfield you are wise to scrutinize the numbers. THE number 1 reason REI fail is because they fudge, are optimistic, are not realistic, or do not plan for negative contingencies in their plans.

Don't fret over a TK that comes close to margin.  Negotiate with the agency to purchase at a more reasonable figure for your budget or move on.  There are opportunities that exist, but they are not going to fall all over themselves to give you a super deal.  You have to make those deals and they are not super easy to find.

Stay patient and adhere to your standards for what makes money/sense (cents).  When you find the deal that is right, move quickly and load up for the next shot.  Think like a quarterback surveying the secondary...you have to checkdown your options, identify the open receiver, and release the ball quickly.  If it isn't there, throw the ball out of bounds, call a new play and snap the ball again!

@Andrew Teng I will echo what others have mentioned here:

• your purchase price is critical to the process.
• the property usually must "rest" for a period of time before a bank will even look at it again (you are good here).
• your additional credit/TD ratio is a big factor.
• the personal relationship you have with a lender is often what can tip the scales.

I have used the same lender for 4 years, and she works very hard for me...we have a very friendly and personable relationship.  For the first 5 purchases, she wouldn't even consider letting me use a previously purchased property until I had owned it for a year...my last purchase this Feb was appraised nearly 3X what I paid for it, and she convinced the "powers that be" to let me leverage that equity for the purchase of a duplex only two months later.

There is no real magic bullet in your scenario, but two things that were mentioned were very astute; @Nick C. you need to only get one lender who will agree with you (out of 50) and you need to present your case more clearly/passionately to them to win them over.  My lender does the loans for me in house (and I bring smoked ribs and cookies).

@Steve Vaughan @Justin Fox @Jassem A. because I keep the records (actually, I design the spreadsheets and my wife is the truly accountable one!), I figure I'm in a good position to do either...deliver a nice package to a tax preparer or be in a good starting point for doing them myself...I feel like it's worth the try.

@Cary F. because a tailor makes clothes doesn't mean you can't learn to dress yourself.  I appreciate your attempt to be humorous, and in your haste, you missed #3.  Probably the right thing to have a preparer do your work as they are paid to pay attention to detail.

@Gina Worsham thank you, that's a helpful suggestion!  I will add that to my list!

Thank you guys for the discussion!

@Marco G.  the intimate knowledge was a big factor in all the posts I read previously, and I have a good basic understanding, and I know I could benefit from this deeper dive.  Good suggestion on the "not all in one sitting."  I am a grinder, and I would try and get it all done in a day, lol!

@Brandon Hicks I am a huge proponent of the phrase, "money well spent."  I contract out a large part of my business, and it seems a bit illogical to not contract this out...I guess I was just sticker shocked with the last year cost when compared to previous years of half that.  Still, I see it as a discipline and an opportunity, like Marco suggested, to get a more clear picture of my business...I have excel sheets with schedules and all types of tracking, so I'm not afraid to do a hard look at my numbers.  I guess I figure if I can set up all these other measures to keep an eye on my business, then perhaps I could be competent enough to do the taxes?

@Percy N. two years ago, I lost the CPA who was doing my taxes because she retired, and THAT is a big factor in why I'm looking around for other options.  She did exactly as you said, offered me great advice and pointed out areas where I would not have thought to look for valuable savings.  Even though I have had my taxes done with her still working partner, there is no comparison.  Not only do I feel like she doesn't pay attention to my concerns, but I feel like she is rude and unresponsive when I contact her for questions.  It has left me with a bad taste, and I cringe at the thought of giving her another dime of my money to act in such a way.  I have feelers out there for other's experiences for competent CPA/preparers, and hopefully I will get a good lead or two so no matter which way I go, I can feel good about this time of year again.

Thank you for the responses!