All Forum Posts by: Mike Reynolds

I was in Jamaica about 20 years ago. I was told, you could build a house anywhere. Including a shack right next to a million dollar one. The country owns the land, and you just build wherever you want. You dont pay taxes until you hook up utilities. 

I was at a bar, and I think he was joking. Maybe not though? 

Depends on the contract. If it's a bank loan and the owner and contractor have to sign the checks then no, we never asked for a draw. If it's a cash job, then yes, we did. Once the material arrived, you cut a check for an earlier agreed upon amount. No check and the materials go back to the lumber yard. No, you dont get a receipt. That is my receipt for my taxes. 

Cash jobs can go every way wrong on either side of the ball. Neither scenario is good for either side. I would never ask for 50 percent though. That's just crazy in my mind. 

That is what contracts are for. Does anyone use contracts here or do you get them from Staples in a pad? You pay for what you get, and you get what you pay for. 

 I didn't get to go this year but I will be there next year. I used to know a lot about the RGV area when I was working down the way for about a decade or so. I've heard that it was booming that way. 

 What kind of system is this? 

 This can't be said enough. It's not about price as much as it is about relationships.

my first realtor was clueless. He had never done a commercial contract, and neither did I. We struggled through it though. Hard knocks and all that. Now, we are thick as thieves and I don't look elsewhere for a few hundred dollars savings. He is my guy. I trust him with all of my money. 

 A good contractor will do everything for a dollar. You don't need to eat like the rest of the masses, you just need to do what you are told. 

That's the way I felt the first 4 years of working for myself. But here is the truth. They need you as much as you need them. All they want is to feel like they get a good value from your services. Give them that and word of mouth will get around. There will always be those that will try and low ball you. Leave them in the dust. They will not make it in the real world anyway. They will bring you down with them. Don't fall for that. 

A contractor provides a vital service. Same as anyone else. Make sure your service is better than the lower 3/4 in the industry. You can do this by a simple phone call to connect with your client. Tell them what is going good and what is going wrong. There is plenty of both in every job. Just communicate and follow through with the job. Admit when you screw up. Fix it and go on. It really is as simple as that. 

 Nacogdoches here. I'm helping a friend build one and about to build one myself. Let me know if I can help. 

 I asked my first CPA all kinds of questions. I didn't get any answers though. My second CPA has told me what needs to happen and I do it. 

i don't know anything about taxes in a business. Not really. I do understand there are many things I think I know but don't really. That's where I got into trouble. 

Find a real estate investing CPA and you can't go wrong. 

 I can. Sold a property for 225k. Was bare land and not making any income aside from appreciation. Bought a 300k property for 200k and one for 46k. ( Still waiting one the deed for the 46k one though) financed ther other for pennies  on the dollar. 

the result was both properties will/are cash flowing where the other was not. Now, I have the benefit of appreciation and cash flow and don't have to pay taxes yet. 

 I have been in this exact situation.

1. Keep the money to invest. 

2. Use it to invest in the next one. 

3. Don't do what I did. Use a good CPA to help you keep the money. Lesson learned here. A good CPA will help you keep it.