All Forum Posts by: Brian Poirrier

@Mindy Jensen I'm not sure I understand the purpose of randomly following people, but is there going to be any improvements to the marketplace? I was excited to have more listing options as part of a Pro account but no one gets keyword alerts about my marketplace listings, I can't make general forum posts about wanting to meet buyers and my listings are not visible on m profile page either so it really defeats the purpose of why should anyone add listings here unless someone is very actively using the marketplace search tool which does not seem likely considering better options out there from Zillow to the MLS.

@Sean Hoglund  Assuming the prior years tax value is lower than your purchase price as in your example, you want to file your ATI Exemption before Jan 31st following your closing date at your county's Assessors office.  This gives you up to 25% reduction on your taxable value but not more than the prior value.  Also be careful as 2019 was a reassessment year so the coming tax bill may already be higher than 2018 was.

For your example, 75% of $187,000 is already lower than the prior taxable value of $154k, landing at $140k.  So filing your ATI Exemption would keep your next taxable value rate at the recent value of $154,323.  However you still have the 6% rate instead of the 4% rate which is $9,259.38 which is not the bill amount but than times the millage rate for that area plus any surcharges for trash depending on the neighborhood and town limits.

A safe assumption without verifying an address with the county is an effective millage rate of about 500 which means the tax bill should be about $4,629, which is still slightly better than not applying for the ATI and on $187k, 6% is $11,220 and a tax bill of $5,610. Disclosure: I have only done this with MFR properties but according to the state it should be acceptable with SFR property as long as you claim holding it solely for investment and not your personal residence as you would already get a better deal.

A few other slight perks of SC compared to some other states is the taxable value is not retroactively applied.  Therefore if you purchase in say September, your current years tax bill will be based on the current years value which may be even lower than what you can achieve with the exemption and on investments the value will be updated according to your ATI and will not be reassessed by the county for five years as well as once it is, the increase is capped to a 15% increase in value which is not common and can be appealed which is less often than many other states.

Yes, the effective tax rate comes out to a difference of say 0.5% on personal residence to 3.0% on investments, but I would say handling it the right way up front and budgeting for it in your analysis is better than risking it another way.

@Victor Adams did you find someone?  I have one recommendation I'll message you on but am also interested in meeting additional GC's and rehab crews here around Columbia!

Look forward to meeting Dan!

@Anthony Wick Depending on the value and what's worth it or not in terms of transfer taxes or re-assessed property taxes if you still want to make the move do it half in 2019 and half in 2020. This also depends on your local laws but usually if you remain the majority owner when you quitclaim to an LLC this should not trigger anything. Won't be simple on the numbers if you're trying to keep it even three ways which would mean have them both start with 16.67% now and the rest in January.

Also hopefully you're getting you numbers based on current value, not your base, and you can pre lock in the second buy-in option based on current value as well. Lastly, unless you really need the cash without many options you are better off doing a cash out refi if you can and then quit claim it to your own LLC to keep partners out of the mix.

@Dan Rose It depends on your contract and what's traditional in your area.  Usually, it is up to the buyer and the buyers inspector to identify any possible problems and either, continues as-is, cancel the contract, request repairs or concession on the purchase price.  

However, if you have confirmed written communication that the property manager knew about it and was working on bids already prior to closing it doesn't hurt to ask the seller to pay for it because depending on the contract they may have and usually would have an obligation to disclose that "new defect" but they are not usually otherwise obligated as they could just as well say you should have seen from your inspection that it was 20 years old anyways.  

Best case may be to ask the seller to at least split the cost but would not be worth your time or money to go after them if they say tough luck and welcome to the world of being a landlord!

Has anyone noticed when they click on their dashboard that the site has you start automatically "following" random new people you don't know?  I saw on my profile I was following people and when I clicked on it and realized I don't know them nor need to based on location and what they do I cleared it all out.  After clicking on my dashboard a few times or reloading in the area of people it suggests I should follow it automatically adds them to my now following.  This is the strangest thing and I'm sure a lot of people are wondering why they follow so many or why they have so many followers from attorneys in Fl to contractors in PA to a guy with no location or about me who has only 2 connections but 6,300 followers, like Thomas S.

I get being here to expand your network but this isn't facebook or a blind meeting app.  I enjoy connecting with people with a purpose and thought and hopefully a conversation or we want to be added to each others deal list, etc.  

Any chance of changing this or opting out?

Second, but more important in my book, anyone else have problems receiving marketplace notifications?  I like the idea of the marketplace but it seems I don't get any alerts even though I've double checked my settings nor do I believe anyone receives an alert when I post something which really defeats the purpose.  

Am I missing something here or does this need to be corrected?

@Baset Shagrun sounds like he would be a first time investor? I would suggest a conservative and diversified approach if he’s not experienced in this space. A mix of say passive investing with a syndicator or two on different types of deals is also a great way to learn while making money, directly lend hard money after careful review, or if stuck on a straight purchase maybe a STNL deal with a long term lease in place that doesn’t require any management, any crazy value ideas or tenant negotiations for a while.

@Flavio Espinal depends on the location. If you’re in say a C pocket of a location I would actually suggest it because you have guaranteed payment on the housing portion and 99% of tenants will pay their portion on time so they don’t lose their voucher. Also on the buy side you’ll know in addition to your own inspection the condition is at least decently habitable because they inspect every year if it has section 8 tenants already in place.

If it’s a better area I would suggest to avoid it because they make increases more difficult to process and approve. Also the additional inspections to deal with may be a pain depending on the individual inspector and the tenant. I’ve seen them abate rent over the most ridiculous “issues” and then delay that permanent rent loss because tenant was difficult with access although this is very rare overall.

@Bill Plymouth sell your value and what you bring to the table. If it was that easy the owner would already fsbo it and maybe only pay 3% to buyers agent. Regardless, under 100k, owners and especially investors are dreaming to list for 5 or 6. I once told a “wholesaler” 10% on a 50k property and they about lost it saying they would lose money which is another sign that you maybe don’t want to work for people like that if they can’t understand the dollar value nor can budget half decently.

End of the day, better to walk away from certain deals and more so certain people that are too difficult to work harder for the type of deals and people you want to work with and want to work with you. This may sound tough without much of a pipeline but you never know when they may come back or more so who knows what better deal will come up because you had the extra time, not bogged down with a difficult listing that you can’t even profit from.