All Forum Posts by: Syed H.

You should never use RUBS for electricity. For water, it’s fine. Electricity is expensive and should always be sub-metered. Invest in getting it sub-metered.

1 Vote

don't do your first deal with other people's money.

1 Vote

Originally posted by @Cameron McCown:

There are, and truly there's not a way that's wrong- there's just a way that works for you.

House prices are lower today than they will likely be at an average point in the future, and getting into action is the key to success in this industry. So you can wait until everything's "right" (it's a myth), perfect, no debt, whatever.

Or you can get into action. Put the money down, and use the cash flow from the new property + your current income to pay off the credit cards even more aggressively. You're essentially buying $200/month (or whatever the net cash flow is), to get yourself out of debt instead of getting out of debt with the cash flow you have.

Be smart. Make the investment make sense. But invest. Or don't, and wait until everything is just right. There's no wrong way to do it, just a way that produces more money at the end of life and a way that produces less.

No there is a way that is wrong. You are giving blatantly bad advice here.

There is definitely a wrong way to do it. The way you are mentioned is the way millions of people have no savings and go broke. Are you just a lender or do you own rentals as well? What do you do when your tenant doesn't pay rent and your water heater goes? Do you go into more credit card debt?

Telling a new investor who is paying extremely high interest rates to his CC that he should invest rather than paying off his debt is asinine and irresponsible.

1 Vote

Originally posted by @Kyle Shankin:

@Lynn Gormley My CPA made it very clear that the buyer of my property and seller of the property that I'm to purchase, must be the same person. However, I've always understood the process to be that I can sell a property to one person, and buy from another. Some of the other comments in the thread have me thinking that my CPA probably isn't on the up and up when it comes to real-estate taxation.

Your CPA is very wrong and you should find a new one.

Only work with CPAs that handle your specific business.

I have multiple businesses, my cpa who handles my real estate does not do all my other businesses.

1 Vote

Yes I check.

No the credit score itself is useless.

I just care if they have certain judgements, evictions on record and make 3x the rent.

I’ve been a landlord on class A through C buildings. People of every category with a 500 to 800 credit score can **** you over. If anything it’s worse when you get screwed on the class A/B properties bc the rent is higher and repair cost is as well.

Income & eviction record are the 2 most important things. Also I always try to get 2 months security.

3 Votes

My rule is to pay off any debt that has an interest rate that I can’t beat post tax with investing.

Being a new investor, you won’t be beating 15-20% cc debt. Anyone that tells you differently is crazy. Pay it off immediately.

Don’t be in a rush to purchase an investment immediately. We’re near the end of a very long bull run. Buying opportunities will come. Also buying RE when you are in debt and don’t have reserves is a dangerous place to be.

5 Votes

Originally posted by @Susan O.:

Originally posted by @Syed H.:

Lol the name does not matter

What does matter?

I heard intent matters and if your name includes the intent wouldn't that be part of an argument?

What matters is what you actually do with the entity. Intent does matter, but a name doesn't show intent. You can name it anything you want.

You can name your company "long term rental owner llc" and still be hit with trader status if you are flipping multiple properties every year.

It is pretty easy to show the difference in intent & actions when you have a rental vs being a flipper/trader.

0 Votes

If the numbers make sense I’d buy anything

2 Votes

Lol the name does not matter

1 Vote

Most large markets are supply limited, that's what drives up the market. Not OO vs Investor. OO already can usually out pay investors in HCOL markets. No one in NYC and it's suburbs are buying $1-5m townhouses, apartments, and McMansions as an investment. They are buying to live and they make a good enough income to support that.

2 Votes

All Forum Posts by: Syed H.

Syed H. has started 0 posts and replied 743 times.

Post: Averaging all bills for complex??!

Post: Newbie seeking 1st deal (w/ 100k). What should i do?

Post: Save or Pay off Debt?

Post: "Learned" something odd about 1031 exchanges

Post: Do you Run a Credit check; Why Or Why not?

Post: Save or Pay off Debt?

Post: LLC names For showing that you are a "Rental Owner" not "Trader"

Post: Would you purchase a house that haunted?

Post: LLC names For showing that you are a "Rental Owner" not "Trader"

Post: Do investors negatively distort the market?