All Forum Posts by: Matthew Becker

Quote from @Matthew Becker:

I build about 10x the rentals that I buy, and if I buy a rental, it is only because I can build on it.  You do get instant equity, and you don't have to fix anything for 10 years.  I build a lot of duplexes with 12 bedrooms and a common space.  Each bedroom is the size of a studio with a kitchette.  Not sure why I don't see anyone doing this.  

I am just finishing a 28 studios built in 2 deplexes.  Here is an example and I stack these 4 or 5 stories tall depending on zoning.  Full basement plus 4 with a flat roof keeps me under 40 foot 

 what market? this is exactly what ew are starting to look at. What was the lot size? Urban core adjacent high number of properties on one small parcel and maximizing height in urban core adjacent areas in Columbus Ohio. 

I build about 10x the rentals that I buy, and if I buy a rental, it is only because I can build on it.  You do get instant equity, and you don't have to fix anything for 10 years.  I build a lot of duplexes with 12 bedrooms and a common space.  Each bedroom is the size of a studio with a kitchette.  Not sure why I don't see anyone doing this.  

I am just finishing a 28 studios built in 2 deplexes.  Here is an example and I stack these 4 or 5 stories tall depending on zoning.  Full basement plus 4 with a flat roof keeps me under 40 foot 

If you just refiance it and rent it you will make more money

$320K I always estimate 10% liquidation cost because it is simple math but it is at time less but lets say 10%  Commission, closing cost, consesision.  $30K 

$175 + $30K = $205K 
$360- $205 =. $155K return

$155K-$60K = $95K 

If you refinance it and just rent it you will get $360 x 80% = $288K 

$288K - $175K  = $113K 

Now you have an asset not heavily leveraged and it will go up in value over time.  If you just rent it for 1 year, you drop down to short-term capital Gains. Plus, you get to depreciate it and deduct $10K a year. Do it 10 times, and you now don't have to pay taxes on $100k a year.  You can also take up to $94,500 if you are married and pay a zero percent tax rate.  There is Cost seg stuff.  All kinds of things. 

You probably need a good accountant because yours should have explained that.  Most people think they need a local one where I live all the local ones are bad, and after 20 years, I finally found a good one.  I use a guy named James; he specializes in Tax planning, especially in real estate.  There is a lot more that you can do.  Rich people don't pay taxes and the middle class does not have to if they just take the time to understand how the system works.  He is also pretty normal for an accountant.  

http://www.stonehan.com

I assume that a slow flip is a BRRRR that you sell in 1 to 5 years or even 10. Most of my flips are 5 to 10 years. I can't believe someone wrote a book about this. I spoke at a real estate forum in 2021 and did not tell the guy what I would discuss. I titled my talk Flipping Is for Poor Stupid People. If people don't understand why it is dumb to pay your tax rate instead of long-term cap gains, then they are very dumb or too poor to hold it.

A long-term flip done well is pretty easy.   You can refinance a property and get almost as much money as you would if you sold it.  If you consider the taxes you are paying, you can get more money with a refiance.   

Is this book written in crayon with big letters to fill space, so there are more pages?  Like a Dave Ramsey book on budgetting that should just say if you don't have the money don't buy it on the first page and then you can include crayons or for an extra $20 magic markers with coloring book pages.  

Toss in an OZ Zone fund after you sell, and you will really crush it.  That would take an entire page more to explain.  You could write three books in the same book or just have 3 pages of paper and call it a trilogy.  BUGETING, SLOW FLIP, OZ FUND.

Then you could follow up with a book called DON'T BE LAZY, DRUGS ARE BAD, GET A JOB, DON'T MARRY A GUY THAT LIVES IN HIS PARENTS' BASEMENT, HOT GIRLS GENERALLY DON'T MAKE GOOD WIVES HELLS HOT TO. 

Keep it small keep it all; understand taxes; only buy cash flow, don't overleverage.  Keep your day job until you can live comfortably on income properties. 

I assume that a slow flip is a BRRRR that you sell in 1 to 5 years or even 10. Most of my flips are 5 to 10 years. I can't believe someone wrote a book about this. I spoke at a real estate forum in 2021 and did not tell the guy what I would discuss. I titled my talk Flipping Is for Poor Stupid People. If people don't understand why it is dumb to pay your tax rate instead of long-term cap gains, then they are very dumb or too poor to hold it.

A long-term flip done well is pretty easy.   You can refinance a property and get almost as much money as you would if you sold it.  If you consider the taxes you are paying, you can get more money with a refiance.   

Is this book written in crayon with big letters to fill space, so there are more pages?  Like a Dave Ramsey book on budgetting that should just say if you don't have the money don't buy it on the first page and then you can include crayons or for an extra $20 magic markers with coloring book pages.  

Toss in an OZ Zone fund after you sell, and you will really crush it.  That would take an entire page more to explain.  You could write three books in the same book or just have 3 pages of paper and call it a trilogy.  BUGETING, SLOW FLIP, OZ FUND.

Then you could follow up with a book called DON'T BE LAZY, DRUGS ARE BAD, GET A JOB, DON'T MARRY A GUY THAT LIVES IN HIS PARENTS' BASEMENT, HOT GIRLS GENERALLY DON'T MAKE GOOD WIVES HELLS HOT TO. 

Keep it small keep it all; understand taxes; only buy cash flow, don't overleverage.  Keep your day job until you can live comfortably on income properties. 

A quit claim from an authorized WF employee? 
Who’s been paying the property taxes? They would have a pretty good claim. (In many states the county assessor’s website will tell you this.)