All Forum Posts by: Scott Walther

Looking for some guidance for finding a good CPA that deal with investors.  I have spoken with Keystone and Amanda Hans team, but the years training cost is not something we are looking for at this point in our business. 

I did just finish her book on the Tax Strategies for Savvy REI, and I do suggest to buy a copy and read it! Does anyone have any other books they recommend?? I don't mind doing a lot of research myself, but it would be nice to have a CPA that can also teach us how to really benefit throughout the year.

Thank you

@Melissa Yatzeck. Yes, you could try to wholesale it. But you are still going to want to put together some numbers before you try and present it to another investor. Having a good idea about rehab costs and the major issues in mind, as those costs will increase dramatically. Along with the comps.  I would start there to see if the numbers make sense. 

I can't speak for all investors but it would have to be a pretty good payday for me to get into that situation. Seems like a really big headache.

Yes, numbers are off. You would end up negative in this situation. :/

I would say NOOOOO! Stay away from that. One, the story sounds a little bit "off". He hasn't been there. Not sure if it could be condemned. RED FLAGS all over the place.  And two, the last thing you want to do is buy your first property and already start off negative. Meaning stress and the eviction process.  Don't waste another thought on this. This already sounds like a nightmare. Move on :)

Spoke to a couple brokers on here that can provide them but are more in the 1 million plus mark. As our properties, on average, with purchase and flip come out to around 100k. So we are not looking for something that large yet. Any referrals out there? 

Business is also located in Michigan.

Thanks!

Amanda and Scott

@Eric Schleif we decided to pass on it. Return wasn't high enough for the work he was doing. 

Do you lend in MI?

Just starting to get involved with private investors vs hard money. Anyone have a general contract that they use with friends, family, or even other investors?

Thanks

Hi Cindy,

Your holding costs can include your monthly payments on the loan, insurance as well as utilities and your yearly taxes.  Those costs will want to be deducted from your calculation as expenses so you know what your profit would be. 

For example I did one yesterday to present to a private lender. I typically say hold the property for 6 months/180 days. Your utilities can vary but I always put 300 a month, hazard ins depending on cost of your property but our averages 1200 a year so thats another 100 a month. Find out your taxes for either the summer or winter and figure that amount in there as well. Average it out per month. Total all of those costs together and that will be your holding costs. Hope  thats what you were looking for!

As we just started out in business last year we have only used hard money. We now have friends and family that want to invest since they see we know what we are doing!  Have not met with a CPA yet but have a few to contact. 

Can anyone tell me how the private lenders are taxed?  Do we have to 1099 them on each project or amount each year?  And is that just added to their short term gains I would assume?

Thanks,

Scott and Amanda

I have a package deal from another investor on the table for 9 SFH and a triplex. Need some brokers and/or hard money lenders anyone can suggest for Michigan.

I know Lima One is an option but also looking for someone that will not penalize if paid off before 30 yr term.

Thank you,

Scott