All Forum Posts by: Ben Vanek

If you are looking for resources to further your education on this topic, I found these books to be very helpful.

https://www.amazon.com/Loopholes-Real-Estate-Advis...

https://www.amazon.com/Tax-Free-Wealth-Permanently...

The 2nd edition of Tax Free Wealth has been revised to include the changes of the Tax Cuts and Jobs Act of 2017.

Here is another good resource.

https://www.youtube.com/channel/UCHYeaAH3D-wzQyDiX...

I would suggest researching and then talking to an accountant about the potential tax benefits of doing your 1099 work inside of an LLC which is taxed as an S corp. This would be separate from any LLC which holds real estate. Just something to consider.

Keep pursuing knowledge and good luck!

In my opinion, the vast majority of woven WRB's should never be used. With that said, most people, GC's and builders included, don't think twice about using them. 

I don't think most people even take the time to educate themselves on the different options available and instead defer to the lumberyard. If the builder doesn't spec a particular product, the lumberyard will select for them. With budget always being a factor, this usually means a woven product is included. 

In order to properly select a WRB, you must look at the entire wall assembly. Perm rating and type of cladding are probably the most important factors. There are many options on the market today, but I'm still a fan of time tested spun-bonded polyolefin, like Dupont Tyvek. 

Ultimately, you are the client so the builder should replace it, but expect to pay for it. If Tyvek wasn't specified initially, this is a Change Order. 

Tough to say if your builder is cutting corners elsewhere. As I said above, it could be ignorance regarding the importance of a quality WRB. 

I'm not an expert, but I don't think there is much you can do. Is the neighbor aware of the situation? Maybe they'd be willing to sell a portion of their property to you. If so, you could do a lot line adjustment. I would consult with the real estate attorney about this as an option.

Did the contract specify how any changes would be handled? The typical process is through the use of a change order which documents the additional scope of work and cost. It should be approved and signed prior to the additional work beginning. It should also explain how payments will be made for the additional work. Typically all, or at least a portion of the cost is due upon signing and it's not uncommon for a change order fee to be applied with each change order.

It's possible that the contract states that if you give verbal approval prior to signing, you shall be deemed to have consented to the change and any increase in the cost. This is often the case if it's a change that impacts the schedule and taking the time to draft a change order would create a scheduling issue. However, they should've then prepared the document for you to sign soon after. At minimum, a verbal understanding of the additional charges should've been established.

The other possibility is that they are working on a T&M basis for any changes, but the hourly rate should be mentioned in the contract.

I use CoConstruct as well, but agree with @Jonathan Landry that it's probably more than you are looking for. Either way, its worth checking out. They offer templates to get you started and you can customize to fit your needs.

As far as I know, depreciation can only be utilized on income property. Your homestead does not apply.

If you did decide to rent the property and you utilized cost segregation, the advantage to this approach is that you are accelerating the depreciation, just as you stated, so you do not need to wait as long to consider a 1031. 

I'm interested. 

From White Bear Lake

You could get the seller to agree to subordinate the land which would essentially put them in 2nd position allowing the construction loan lender to be in 1st position. You could have them subordinate all or a portion of the agreed upon sale price of the land.

Leon's is probably lower in price, but Distinctive Stone in Roseville does good work. Also, Matt at Clear Choice Countertops could probably help you with this. He's out of the Princeton area.

We have used a 5 piece, trim to fit surround in the past for this application. If installed properly, the only maintenance should be cleaning and recaulking the surround to tub joint, but that is true with a tile surround as well. We have purchased these at Menards and The Home Depot. See link for similar product.

https://www.menards.com/main/bath/bathtubs-showers...

I believe there used to be a cheaper version as well, around $100, but it's too flimsy and I would not recommend that one. 

Good luck!