All Forum Posts by: Michael Lucero

Why does it sound too good to be true? I know it can be exciting, but the numbers don't seem to be good at all. Looking at 1,775 mortgagee cost versus 1,950 rent, afterr you factor in repairs, maintenance, capex, vacancies, etc. you are going to be losing money with a lot of work/consideration on your side.

Of course you can be a successful agent working part time, it obviously decreases the likelihood vs full-time and how fast you can acheive success, but it can be done. 

Probably about their hobbies and family ;). 

Assuming you are starting a business and its in real estate you may want to ask at what level does a tax return need to get filed; company or personal. So get an understanding of pass through entities from them, which an llc is. 

Ask what paperwork you need to save and how to save it during the year so that can eadily have your taxes filed. 

Ask about 1031 exchanges if you intend on selling real estate holdings and want to delay paying taxes on earnings. 

Ask if they have recommended local CPAs in your area that has experience in real estate.

I imagine this "free" 30 minutes is an upsell to try and get you to hire this cpa but you can still take the time to ask their fees or standard fee structures in hiring a cpa.

 Except the lakers owners have no interest in selling :)

Great response from Jim. As he mentioned, you have to considered the other costs such as property management, repairs/maintenance, any large capital expenditures now or in the near future. As a quick rule of thumb, if you can rent it out for more than 1% of the houses purchase price $100K a month, then it should cash flow decently, and it looks like you're there. You will need to be renting out the 2nd house as well for that to happen.

You have to think of the kind of people and their psychology/characteristics, etc that led them to be in that predicament to begin with and realize that they are at times, for lack of better word, lazy. They won't take action unless something REALLY forces them to, up to and including being kicked out of their house because the county will take it. In some counties you have to be behind on taxes for like 5 years before you're kicked out, so just because they are delinquent, doesn't mean they still can't live there. These people tend to not care about their credit or financial situation. 

The best you can try to do with these people is show them VERY simply what the steps are when they become delinquent and how their house can be taken from them and you just want them to be informed and to help if they want it.

Awesome, I didn't realize the original post was so long ago, I was about to make a comment about what you should do. Seems you made some good choices, congrats!

I drove a 1987 Camry for 12 years from 2000 - 2012 from age 16-28. It wasn't sexy or anything. I then got rid of it because it wouldn't pass a smog check. I then drove a 3 year old used civic, base model, no power locks etc for 5 years, and recently sold it to take the train to, more of a lifestyle thing rather than to save money. But the point is, you don't deserve the truck just because you can pay for it, to be successful, you should go all in, get rid of that.

You don't necessarily need a business entity or a separate checking account, but it would make it a lot better if there was any lawsuit or liability issues. When you have a separate legal entity, such as a corporation, the house and business itself sits within that corporation so if anyone wanted to sue the company, the most that they could get is the business assets, and not reach into your personal money or house. When setting up a company to protect your personal assets, you should also get a separate checking account, so as to not comingle funds, because if a lawsuit came around and they saw the personal checking used for business and personal, it might be hard to say the business is really separate from your personal.

Not sure I understand the question from your first sentence. You want to know how to set up a legal partnership? If so a simple google search can help with that.