All Forum Posts by: Michael Albaum

Hey Osiris, firstly, welcome to a great community! I'd say first and foremost, you need to get clear on why you want to invest in real estate to begin with. You could go park your money somewhere else, so when challenges arise with real estate, you need to have the drive to stay with it, and that will only happen if you have clear goals that you're working towards.

Also, you need to get educated about what "investing in real estate" means to you, as there are numerous channels to utilize and it can often feel overwhelming. So go start to learn about the different options available and see which one strikes a chord with you and pursue that.

Hope this helps, but I always recommend going to get educated. Whether that's from BP, YouTube, Udemy, a mentor/coach, friends/family who have done it, just start and see where it leads you.

Cheers and best of luck 

Hey all,

I'm working on a major redevelopment project and need 10-12 HVAC units for residential apartments. My GC has been using a local dealer, but the prices seem way too high. Does anyone have any reps they recommend in the Covington, KY or Cincinnati, OH area? 

Thanks in advance! 

Genuinely appreciate the insight. Could probably do without the snarky remark, but like you said, we live in a free country. 

Best of luck to you as well.

I would disagree on the cost seg portion @Eamonn McElroy. I did several major rehabs and did cost segregation studies on all of them and was able to take significant deductions in that same year. Additionally, I've spoken to investors about doing a cost seg on an expensive building/asset they purchased without having done ANY rehab because the seg breaks down the different effective lives of different components...not everything needs to be depreciated on a 27.5 or 39 yr. schedule.

So I would encourage anyone to look into it, regardless of whether or not they purchase a "bucket of assets", I think there is significant benefit to even someone purchasing and rehabbing a SFR.

Disclaimer***I'm not a tax professional, so go talk with one, but yes you need to issue 1099s for all of the work you paid to have done. Also keep track of your materials budget if you paid for that personally. Your tax records will show what your basis in the property is, hence the importance of issuing the 1099s since that will be reflected on your taxes.

Also, if the rehab costs were fairly significant, $30k+, I'd definitely look into having a cost segregation done, it can be amazing!

I used them on my primary and they were a real pain in the butt to get anything done. You HAVE to use their vendors and are pretty tough to get ahold of. I prefer Old Republic. 

Hey Scott, a mentor should be exactly what you mentioned, someone who has done/been where it is you're looking to go/be. Finding a great mentor also takes time because the relationship needs to be fostered and built, just like any other relationship. After meeting someone once or hearing about someone, you may not know yet if they'd be a good fit to be a mentor to you.

One piece of advice I can give you is PLEASE do not run up/reach out to someone you don't yet have an established relationship with yet and say "will you be my mentor?" It's a sure fire way to never get a mentor.

Also be thinking about what value you can bring to them, and don't ask them what you can do, as that forces them to now stop and think about what you can do for them. Try to have that part figured out already.

Go to meetups (virtual these days) and network with others who are like minded.

Also, while there is a ton of information for free online, don't be opposed to paying for a mentor or coach, they can usually increase the amount of knowledge you will gain and decrease the amount of time it takes to absorb. So if you're open to that sort of setup, that'll likely widen the scope of potential mentors. If you do go the paid route, just make sure it's not some guru who's claiming to know everything and have a secret sauce, make sure it's someone who's actually also an active investor and who's values align with your own.

Hope this helps! 

Yes to keep the debt down and maximize cash flow. Construction loans are typically expensive and a real pain in the butt in my personal experience. All cash just allows you to move more quickly with so much less red tape.

Ah got it! Thanks for clarifying!

I'd buy a property that qualified for financing that needed cosmetic work, fix it up with the leftover cash and then refi down the road...a standard BRRRR

It really depends on your goals and experience level. You could split the $60k up into multiple down payments, or you could buy something all cash and do some rehab and cash out refi again down the road. You could also buy something semi turn key all cash and just sit on the cash flow.

Numerous ways to go about it and each one will have different outcomes, but you should start with your end goal in mind and work backwards