All Forum Posts by: Rudy Manna

I am doing couple of rehabs and wanted to bounce some ideas on possible ways of savings on taxes (legally). I have never put too much thought on taxes but with sales tax, and income taxes later, it can be substantial. I understand that this has been discussed in details in other threads but will love to hear some real life experience and perspectives. 

- I can deduct the sales tax on home improvements during my tax. Does this applies to investment properties?

- Can I do a 50/50 JV with a GC, and that way I can possibly avoid sales tax for the services rendered by GC and his mark-up. We can structure in such a way that his services will be his contribution to the project, hence sales tax wont be necessary.

- I am from Washington, so buy supplies in neighboring Oregon that don't have sales  tax. Or taking advantage of their sales holiday.

Any other thoughts?

where do you get used appliances from? Is it from craigslist etc.?

Where do you buy supply materials from?

@Shawn M. could you please explain the national reia discount? Also, where do you get lowes coupons online? 

@Pradeep Tiwari

Thanks all, these are great ideas. I am hoping the next house I will be able to reduce costs by 2-3k. Even in a house 100k purchase, 50k renno, 20-30k profit this should improve my margin by 10%.

I am completing couple BRRRR in Washington, and 25% of the costs are in materials. I am buying some regular items such as cabinets, counter-tops, appliances, paints etc. All the purchases are primarily from local HomeDepot. What strategies people use to reduce material costs? I was thinking about exploring some new techniques. It will be super helpful to hear some real examples. I am trying to understand if it is even worth trying?

- Use the Marketplaces and buy used or new directly from customers such as OfferUP or FB Marketplace. or even Ebay.

- Hoard up during deals seasons. Such as, Buy 5 Appliances during thanksgiving. Garden supplies during end of Summer sales. 

- Buy from local thrift stores.

- Hire day labor to do relatively simple things like yard cleaning and basic landscaping, interior painting etc.

Thanks in advance. Some of those may sound like penny pinching but feels like they can add up significantly over time.

This thread is a eye opener. I didn't knew that simple measure like sq ft isn't standardized and can go all over the place for a given house. There is a reason the real estate industry got the reputation of archaic and un-cool :).

When we buy anything, its in good faitht that the seller will be truthful. If the buyer had to verify every product description then the whole eCommerce model won't work. And yes, Amazon sells million dollar paintings among other expensive items. How many of you validate the square feet with a professional measurement guy every-time you make a purchase? And if you have to do that every-time, will that make the long process of purchase any easier?

Anyways, I know that lawyers charge $250/hr, but I didn't just want to just let go. So I reached out to the bank and they wanted to do a measurement. It turned out that MLS is accurate, county is lower. Its, all good.

My last question is, Is there a way I can correct the county data?

I am looking into several deals. My plan is to do buy and hold 50/50 JV with partners. Is there a general framework where we can hold the property 50/50 but have the financing under my partner's credit. Thanks in advance.

How is this going to work? Think during the transfer to LLC we'll have to pay excise tax. Moreover, will the bank allow transfer to LLC while keeping the financing?

Me and a friend on mine are jointly doing a BRRRR deal. We bought under both our names (both individual names are in the title). Now we need to refinance.

We are wondering if there is a way we can refinance it under my friends credit (his credit is better and he is willing to help), is that possible? Can I transfer to a LLC and have 50/50 between him and LLC, and the loan under his credit?

Anything else I can explore?