All Forum Posts by: Aaron Armstrong

Haha. Just kidding. I wish I had this problem. But....

I am looking for ways to get money out of my business ( construction) and into real estate without getting pummeled by taxes.

My accountant mentioned to have the business "rent" my work vehicle from me, and to make sure I am tracking all expenses. But nothing specific to say paying for a cheap house, or maybe a down payment on a rental property.

Additional info ... I don't want the construction Corp to own the SFR, or MFR because of the liablity I run into on jobs. I do have a single family and a duplex, in my personal name currently, looking to start an entity for future purchases and possibly transfer the current into.

Thank you in advanced to your ideas and guidance.  

just to add a little more to @Steve Vaughan comment on the pan.  They also make pans that hook up to a drain in case of a huge leak, or a slow leak not made aware to you quickly.  But this gets into proper plumbing traps and vents.  Also It being a drain that "hopefully" won't be used often, you might be asking for future complaints of sewer gas smells coming from it because the trap water evaporated. But a quick cup of water down the drain once a year would fill the trap and eliminate the smells. 

Might be needless info .... But good luck @Account Closed 

Hello everyone! I'm am looking for an attorney to work with for current and future real estate adventures. Haha. I am in Titusville, a small town in NW PA ( Crawford County). I am pretty new to the game with only two properties but have plans for much more. Seeking quality advice on a strategy to keep things rolling, to look over leases, double check the eviction process for my area, and the best entity for hold assets for me. Thanks in advanced for any replies!

Tom S. Nothing exciting unfortunately. I am kinda stuck. The owner is starting to use a lot of fluff whenever she take about the property and it making me not want to talk much. When I said 90 she said she would come down the 7% she will save not using a realtor ( $ 116,250 ) . I brought some things to her attention like; section of the roof will need replaced soon, A couple 10ft pieces of soffit and fascia is missing, and some siding missing in areas on the backside. Like I said I am kinda stuck on what to do. I am still in the process of getting my HELOC that I will be using for most of the down payment. When I say that I offered, this is just emails and text to the owner. Would you bring In an attorney at this point?

Those are really good points. I never thought about the small town talking, I bet the same would happen in my town. I offered 90 k . I will update. Thanks again. I was really nervous and these comments helped a lot.

Thank you so much, I had to re-read a couple times but I think I get what your saying. I don't completely understand cap rate but I am looking into it. I know it's a rule of thumb, but the 2% rule was making 91k look good too. Well I think I made the owner mad! I offered 90k. They were not impressed. Should I move on or push the issue? Should I be offering like this with no experience at all? I don't even have an attorney yet. I know I am new but this feels wrong haha

Hello everyone my names is Aaron.  I am very new at investing, actually Real Estate in general, and could really use some guidance.  I have listened to all the podcasts, watched Brandon's webinar, and I'm starting to purchase the books everyone is suggesting.

This rental property is right beside my house.  I live in a sorta depressed area, about 5000 people, with not a whole lot going on near me.  We are about 2 hours north of Pittsburgh.    There is no chance of crime in this area, the "cop shop" is across the street from us both and the houses in the area are OK.  Let me know if you need any more info.  I really appreciate your input in advanced,  and when i say "new"  I mean about 4 months of being obsessed with anything that sounds like investing but still picking up the lingo.

The Flower Shop:

Asking Price; 125,000

4 Apartments ( all currently have tenants)

3/1   $500   about 2 yrs

1/1   $445   4 yrs

2/2   $500   3 yrs

Efficiency  $ 375    In and out often but sound like promising old could in it now.

There is 1- 800q.ft. space being unused currently. I am guessing anywhere between 500 and 700? any advise? my occupation is Retail Construction. I can build offices for nothing but my time, i just don't know the rent it would make or should i just rent out open space and they choose and build what they want?

Taxes  $1167

Renters pay utilities except water and sewer    under $ 200

I wanted to be on the safe side so i was thinking... 

10 % Vacancy

10 % Repairs

10% CapEx

12% Property management ( Hopefully my own PM when i have enough properties) none where i live.

Owner pays for a dumpster ... i want to say $150 a month

small gravel parking lot on the lot ( i think capex should cover upkeep )

I have not yet spoke with any of the current renters, i am only going off what the current Owner is telling me.  

The Property was listed through a local agent but was recently taken off the market.  I am not sure why.  She said she will be listing on craigslist and the newspaper soon.  I am talking to her directly right now.... Is this a bad idea?  Should i be using and agent or broker? I really don't fully understand this side of it.

I started talking to a guy clearing out the empty store space thinking he was a contractor building, and it ended up being the owners father and ended up calling the owners.  They moved down south and are managing it from afar and don't seem to like it.  They sound motivated. 

The condition of the apartments are very good for my area.  The owner says completely renovated..Electrical, heating plumbing.  I believe them for the most part.  I will attach pictures

The questions i can think of now are..

Do i have to go to an agent to make an offer? /should i?

I don't have a LLC yet. Is this bad?

Is this a bad deal

i keep hearing to have an exit strategy.  Any ideas?  

Its been for sale for probably a year.  

Thanks for the replies and tips.  I have a lot to learn

Well i want to be an investor.  I am very new at this.  I got interested because i did an accidental live-in-flip and now my eyes are open to the potential of this whole thing (thanks to the podcast).  I have a construction background, mostly commercial and retail construction, but i am seeing that i will probably need to start with residential because of my low funds.  My interests are still being shaped, but i really want to get into the commercial side of investing.  I am very surprised to see 5 people in my small town on this site as well ! Thanks bigger pockets ...