All Forum Posts by: Michael Camden

Thanks for the feedback. We settled in the middle with him signing a Waiver for a future Lien Option.

Hi All, We're currently flipping a property in Texas and are at the end of the process. Our Contract with the contractor called for a specific completion date, and we agreed on a cost per day reduction in the contract price. The project was delayed by 70 days and we had to have another contractor come in to do some touch up work. We gave two weeks concessions to the contractor due to weather and a few unforeseen additional tasks that held him up. The contractor is fighting our stance and unwilling to meet in the middle and accept any responsibility for the delay. He's threatened putting a mechanics lien on the property. It's only $1,500 at the end of the day but we're not in the wrong based on our contract. Has anyone had this issue? Would you just pay it or hold your ground on principle? The legal process can take some time. Best, Michael

Hi All, We're currently flipping a property within an LLC taxed as an S Corp. The LLC holds title to the property. As an alternative strategy post rehab, we may keep the property as a Hold. If we do so, we'll be refinancing the property after appropriate seasoning. We'll be looking at obtaining a personal residential mortgage from a portfolio lender and placing the property in an LLC as a Partnership. From what I've been able to obtain, this appears to be a possible path. I've read quite a bit of opinions on the forum that believe flips should be in an S Corp as it's beneficial once you're doing high volume from a SE Tax liability position while LLC's taxed as partnerships or SMLLC are ideal for holds considering the passiveness of the income. Can those that have experience with this situation or those CPA's on the board that deal with Real Estate provide their view on how to avoid recognizing a gain on the property transfer when we refinance? As a disclosure, I do carry a CPA license but do not practice in real estate tax and would appreciate all feedback on similar situations. Best, Michael

Has anyone working in Bexar County (San Antonio Metro) come across a source that is data mining County Records by owner? I'm curious to locate property owners that have 5+ properties and are looking to get out of the rental business. 

Best,

Michael

Good Morning All,

I am looking for references for reliable, timely and actionable insurance providers and title companies in the San Antonio market. These services will be needed for a flipping business.  I appreciate the SA BP members input.

Best,

Michael Camden

You should determine the cap rate, coc returns, timeframe for turning the units for repairs and increased rents. Also, what's the physical vacancy rate and economic vacancy rate? You should get the rent rolls. On its face, it appears to have potential. Would need more info to confirm.

Jake, Send me more info via PM. I'm interested in hearing more and seeing one of your recent deals. Thanks, Michael

@Carlton Yuen Thrive FP focuses on the larger cities (Austin, San Antonio, Houston  and Dallas) in Texas which I'm sure you're aware are all in the top tier of fasting growing cities. Thrive does long term care and assisted living facilities as well as other commercial properties. With no state income tax and a relatively low cost of living, Texas is an attractive state for those entering retirement age.

Thank you all for the feedback. The Forum has been a great resource especially for examples. I chose Lafayette because my partner lives there and I am a LA native. A few other reasons that Lafayette is more appealing than Austin. 1) Less capital is needed to purchase in Lafayette at the 20% down rate. 2) Austin is a sellers market 3) Austin's incredible appreciation should stabilize in the next few years. The market is over-priced. (For my own residence, I hope it keeps going up.) 4) The cash on cash return and cap rate is better in Lafayette.

Good afternoon BP, I am a new RE investor (Austin, TX resident) analyzing Lafayette, LA with my partner (Lafayette resident) to develop a strong buy-and-hold portfolio over the next 20 years. We are seeking tips about lenders, attorneys, and miscellaneous info in the area. We appreciate your comments and advice. I wish you all a happy new year and prosperous 2015. Best Regards, Michael Camden