All Forum Posts by: William Anderson

Try Waveapps.com they offer free on line accounting.  Just set each as a separate business.  Wave connects to your bank account and will auto-download transactions.  Very easy to use and again, free

LVP is a good choice, one that I have been using.  Pay attention to the color, gray may be going out, a softer brownish tint is what I have been told is coming in.  If you are planning on leaving the floor in for a while, do some research with people who sell the products about the newer color tones.  Real wood is not that fashionable now.  Take a look at new homes.  I have been showing new homes to clients for the past few weeks and nearly everyone has a high quality LVP in some type of wood look alike pattern.  

Not a single house even at the top of the market is installing wood or wood laminate.  Some custom houses, yes but most of them are also using LVP.  Pay attention to the trends in your area.  Renters for higher end properties are more attuned to fashion trends.  FYI, Home Depot has a German brand LVP for $0.99 per foot but you need a good underlayment e.g. $0.69 per foot.  It installs easy and looks good for most properties.  Home Depot offers a 10% military discount.  You may be able to find an installer for about $1.00 per ft depending on labor costs in your market.  I have mine installed for $0.75 per foot.

Assuming you are a real estate agent you need to have them sign the disclosed dual agent form.  Check with your broker.  Dual agencies have their risks.  

Forgot to mention 10% deposit 

 Chris, You seem to have a good grasp of the concept, I assume you are just checking to see if you are on target.  When the seller has no mortgage or a mortgage that can be cleared with the buyer's deposit, there is an opportunity for a seller-finance deal.

When interest rates were very low before the current administration, seller financing was not very appealing because a buyer could get a 3% loan.  With loans for credit-challenged people nearly 8%, a seller can do well with their proceeds.

I just wrapped up a seller-finance deal for one of my clients. The buyer had good credit but could not swing the ratios because of the cost of insurance. I listed possible seller finance when I posted the property on the MLS and the buyer latched on to it as a way to save the deal.

My client will earn 10% interest on a five-year balloon with a 30-year amortization.  If the deal had started today, I would recommend 12% interest.  I have a thing about trying to stay ahead of inflation by 4%.  The buyer has five years to obtain a better loan or come back to the seller and recast the loan at a different interest rate.

The wrap is problematic.  I have done a couple and on one the buyer broke our deal and accidentally notified the mortgagee that they had sold the property.  It was not a real problem because I had a financing package on hold for just such an issue.  They gave me 30 days to get a new loan or they would foreclose.  

The due-on-sale clause in almost every mortgage is the problem.  The minute the mortgagee learns of the sale they will come after you.  You can avoid that if the property does not transfer via a quit claim but that's a risk as well.  People play games with this signing leases with an intent to buy etc.  Too messy for my clients so I avoid them.

I just wrote an article on my blog about this as I think for the near future it's a great way for a seller to earn some good returns with little risk.    https://retirecoast.com/seller...

Reach out to a good real estate broker in your area and ask for a referral.  Most brokers will only give you the name of someone they trust.  Lots of brokers (including myself) operate property management companies.  If you can find a broker that owns a property management company that's best because the broker is licensed for real estate in that state.

In the end, none of these silicon valley start-ups can replace eyes on the ground and owners looking at the data.  I recently completed an analysis for a client that included 15 similar properties.  There was a wide swing in rates even when a number of them were in the same condo complex.  The problem is that many people who own STRs are not experienced so they just drop their prices when things get slow.

I account for those abortions and eliminate the very high and very low ones and the ones with lots of rentals at low but not stupid prices.  If you see the buildings and can match their quality with the area etc., you will have a much more accurate assessment of rates.  

I agree with the statement that some property management companies push out low rates.  My company resists that even when the clients are desperate.  Actually, we tell new clients that if we are to manage the property, we don't want them consulting on rates.  If an owner becomes too much to work with, we terminate the agreement.  

We tell each of them that we want a balance between rates and occupancy. As most investors know the secret is fewer guests at higher rates.  It's a hard balance to maintain.

Amitesh, try mine, he is located in Southern California.  Steve Henson, CPA.  https://www.hensoncpa.com/

He has been my CPA for 30 years.  He is an investor and a real estate broker so he has it all.  Most of his practice consists of business owners.

Anthony,  I work in Southern Mississippi, and my office is located in Gulfport.  I don't see any multi-family properties available in Hattiesburg as of now.  I know that multi-family properties are selling fast on the coast if they are in good condition.  I am closing on a duplex that I sold this week.

Rents are up finally so multi-family properties are becoming more in demand as a result.  Check out my real estate broker site at LoganAndersonllc.com.  If you register, I will see what you like and can get info to you that is not exposed to the public.  

You need to obtain an EIN from IRS for your entity.  The last time I checked, that required a social security number to obtain the EIN.  There may be a way around that as I know of people here illegally who have been able to obtain EINs.  Perhaps they have someone use their SSN to obtain one.  

You can open an LLC usually without an EIN but at some point, upon renewal, it may be required. In Mississippi, you can open an LLC without an EIN but at the annual renewal, they need an EIN. I recommend that you consult a good CPA or an attorney, I am betting there is a way for you to legally obtain an EIN if you are on a valid H1-B visa.