All Forum Posts by: Robert Leonard

@Jordan Smith

@Jordan Smith

@Jordan Smith

@Jordan Smith

@Jason Hillier you need a Washington state attorney and CPA's advice on the correct answers. I can tell you how it works in my state and the general (federal) tax concerns.

The partnership (LLP) would need to agree to transfer the property to you or an entity you own (such as an LLC) under terms that wouldn't equate to a gift. Whether you chose to transfer (and how to execute the transfer) the property to you personally or an entity is an asset protection decision that you have to make with your legal and tax advisors.

The LLC option would allow you to receive the tax benefits just like it was in your name if you DO NOT elect to be "an LLC taxed as an S Corp." The other option (which I use) is to have the LLC taxed as a "pass through entity." That's another detail to discuss with your legal and tax advisors.

I'm just discussing how this works where I am. No legal or tax advice! :-)

WHO DAT! @John Lewis

@John Lewis

@John Lewis

@John Lewis

@John Lewis@John Lewis

@Andrew L. I agree that $2450 gross/month off an investment you can take ownership of for around 25k cash looks very attractive! BUT, all utilities included will dramatically reduce your ROI. The tenants will likely use more than an average amount if they aren't paying for it.

As far as the rules of thumb go, I agree with @Jean Bolger you don't have to guess. That should be part of your due diligence to find out the actual numbers from the utility companies. I've seen 60% used as the adjustment for the 50% rule when only water is paid by the property owner.

This deal will probably still prove to be a winner at that purchase price. Just make sure you are thorough in your due diligence to have a reasonable expectation of your expenses/ROI.

@Tony Cavalli I don't allow unnecessary intrusions of my roof. I think the satellite companies have started requiring their installers to get property owner permission for these installs in my area. I've had several of them installed in the past without my consent, but over the last two years, I always get a call to ask and I say put it on a pole next to the house.

This is one of my pet peeves because the installers and tenants can be in an "I don't care where you drill holes, just get my satellite in every room" mode. When I can, I'm there when the installer is, so I can help him with decisions on where to drill or not.

I also don't want 20 feet of wire coming out of a hole in the wall. I like a low voltage outlet with a plate that the tenant can attach an RCA cable to in whatever length they need and it can be removed if its not used by the next tenant.

@Thomas Morris I can't really advise you on this, but I know you want to make sure your decision is in compliance with the new Dodd-Frank rules that went into effect in January. A lot of what was done as everyday business (for lease options, owner finance type transactions) changed and a lot of people are still doing things the old way. That's all fine and dandy until things go wrong and then the lawyers get involved and the "fit will hit the shan" as they sometimes say!

@Tamika Mays I think you should follow the advice of successful landlords about whether or not its a good idea to become one. It isn't for everybody, but a lot of the skills it took to be a successful police officer will pay dividends in dealing with potential tenants like @Jon Holdman stated so well above.

You'll find lots of successful landlord/property managers here on BP who can help you decide if you've found a great way to invest or if you should invest elsewhere?

@Scott Stevens If it's just the drawer, it shouldn't cost much to reproduce. Take one to a cabinet maker and get another one made. You will need to take measurements of the drawer opening and the type of drawer slides used in the vanity. Take some pictures. That should be pretty easy and costs a lot less than replacing the vanity. Just replacing with a dummy front wouldn't be good enough for the tenants I want.

@Malcolm Hill if you are taking advantage of the opportunities to learn from the experienced pros who are guests on the podcasts, it's been said many times that it's better to link up with an experienced wholesaler and accept a finder's fee for the benefit of following the process and learning how it's done from that person.

I know everyone here is trying to help, but there's just way too much guessing and hear say in these replies to really be helpful. Any contract you use needs to be checked/okayed by an attorney in your state, not a generic one off the shelf at a store or found online.

You DO NOT want to get an REA involved in a wholesale transaction. The only contribution they should make is to help you with comps UNLESS they themselves are an investor who wholesales properties.

That's some great advice from @Brian Burke

@Brian Burke

@Brian Burke