All Forum Posts by: Account Closed

@Russell Brazil

"Cash flow, or yield, is a factor of the risk in the underlying asset and/or market. In any investment vehicle...real estate, bonds, dividends, this is a fundamental rule in investing. NoVa is a low risk market, and thus will have a low yield. If you want a higher yield, then you would need to look to a higher risk market." 

I always understood the risk versus reward concept, but thank you for synthesizing it with real estate returns in different markets.

@Basit Siddiqi 

If I were to hire an accountant, it likely wouldn't be from H&R Block or any other national chain. I would look for a CPA experienced with REI in Maryland. I am sure my tax situation is more complicated in 2018. What I didn't realize is that I may be able to claim expenses before completing the deal, so thank you for pointing that out.

Any advice when looking for a CPA?

@Alfred C Dunlap, thanks for asking this question. I am in a somewhat similar situation, in that my REI has not yielded any revenue yet. I am completing a flip that will be done early in 2019. This being the case, I wouldn't imagine my taxes are all that more complicated for 2018 than last for 2017; but then again I didn't own an LLC or take any loans out in 2017, so maybe they will be.

@Bill Hampton if I may ask a follow up question, at what point should an individual consider using a CPA versus doing it themselves? Every persons tax situation is different, but is there some kind of rule of thumb to determine when the extra cost of CPAs are outweighed by the savings of a larger tax return?

I'm glad I read this thread, and that each respondent mentioned that one should separate their personal and business accounts. I am not glad that I have been doing a poor job of this through my first flip. Thank you @Michael Plaks @Bill Hampton, and @Basit Siddiqi for what should have been painfully obvious advice to me. 

Hi La'Desha, thanks for commenting on the thread. Have you started any BRRRR deals yet, or still looking into it? How far into your research have you gotten? Identified any neighborhoods or zip codes? Look forward to hearing from you!

Hey! anyone out there using the BRRRR strategy in Baltimore? (rhetorical question of course) I want my next deal to be a BRRRR instead of a flip and wanted to know what neighborhoods people are having success in or recommend. If you are, have, or will BRRRR in Baltimore, I would love to talk to you, thanks!

@Robert Clifford Well thanks for sharing your experience and that valuable lesson! 

Your are correct, I really have enjoyed northern Virginia since I moved here. Ironically enough, I went to school in Charleston and have spent sometime in Greenville, I much prefer the South Carolina winters!

@Robert Clifford I really like that last tip you just gave about approaching seller financing, I'm not sure why, but that really gave me an ah-ha moment. Don't just ask for seller financing outright, instead put some thought into how you present it, come to them with the whole deal laid out and explain how it is a benefit to them. At least that is what I took away when I read your last comment, let me know if I have misinterpreted! 

What are the best questions to ask a realtor when looking for one to hire? I'm in the middle of a flip now and want to start working on bringing a realtor in for the sale? When should I start this process what should my search criteria be? Thanks in advance for the input!

@Nick Gray 25 year old civil engineer near D.C. here currently working on my master's in project management and going through my first flip in Baltimore right now, I understand you pain in a sense, although I actually enjoy engineering a little bit. Going through my first flip has been exciting, stressful , and an incredible learning experience. I cannot wait to start the next project or find the next deal, but I lack to the funds or network. I blame this on my youth and lack of patience, I'm ready to go full throttle into REI, but I just haven't put in the time and work to do so yet.

I have, like you, considered becoming a part time realtor to increase my network and income or just quitting engineering altogether to pursue a full time RE job with the ultimate goal of becoming a full time RE investor. I have not done so because I feel it would be throwing away the value of my education and experience, I don't know if I am making the right choice though.

I respect your guts to quit a high paying job to purse your dream, and I wish you luck. Please let me know what you end up doing and how it works out for you, or if you ever want to invest near DC!