All Forum Posts by: Charles H.

Rocket engineer in Huntsville, AL!

Hello all,

I have dealt with conventional loans under my name, full cash purchase with split equity in title, but for the next deal, my parents wants to provide 50% of the cash and I would finance the remaining. The title MUST reflect that 50% of the house is owned by my parents (in case I pass away, so that it doesn't go to the other side of my family etc).

I am being told by a lender that my parents must do a gift, and that this structure cannot be done. I'm surprised... Anybody has dealt with this situation ?

Thank you!

Charles

I feel landlords like us will get screwed. I am worried with all the expenses beside mortgage. Apparently, we can get some kind of a fund to cover that but you have to freeze monthly rent for 5 years. Who is going to freeze the property tax and other expenses to go up ? :)

@Ashish Acharya thanks for the answer! We haven’t done anything, just simple title with right of survivorship.

@Natalie Kolodij thanks for the answer!

How about the price of the house to calculate the depreciation ? Do I put 25% of it too ?

Hello,

I am purchasing a rental where I put 25% of the money and my mother put the 75%.

There is no LLC, etc. The county registers the equity percentage.

I was thinking about doing a K1 but it seems to be for legal structure / LLC stuff.

How do you show you own and receive x% of rental income expenses and depreciation on a tax return ?

Thanks in advance,

Charles

@Terrell Garren great question. The job is fun if I were to describe it but it’s extremely repetitive (like a lot of things but here you can’t really reinvent the wheel in this job), and of course, I am paid by the hour and my salary is capped by the years in the business.

I see real estate investing as a business with no limit but the sky with the opportunity to have monthly cash-flow after a while. There are so many creative things that can be done to either increase the portfolio etc.

Now I’d love to still be working for the company I am at if I am able to move into a leadership position, possibly in innovation, but I have to move mountains for that (which I am working on but very tricky).

Hello guys,

I have been a BP follower and pro member for years. I feel I should share my story as it may help people who are stuck like I was.

Since 2016, I was into buying real estate for investment purposes. I was seduced by the cashflow apartments multifamily thingy that I learnt from good old Grant Cardone (my views on him has changed since, but I appreciate that he opened my mind at the beginning). But until April 2019, I had done NO move because no deal made sense. I was also stuck in the analysis paralysis.

And then, come march 2019, I just said "F*ck it" and I looked at a very good area of Jacksonville FL (I wanted to buy in Jacksonville for its growth etc) and I found a decent townhouse for 179000. For many years, I had built a decent amount of cash on my savings so I bought it cash. Got it. Rented it for $1400 within a week. HOA was $180 covering roof etc. Property management was 10%. Then I decided I should cashout refinance it a few months after.

The experience of being an actual owner/landlord changed everything (even though i had experience in rental property since 2003 via my parents). I do the loan, and at the same time, I see a 1500 sqft house close to my job in GA, in a great area. It looked unappealing (old carpet, old paint etc). I made an offer and got it! I was literally doing 2 loans within the same month and the credit score saw only one. I ended up doing all the floors myself, and handled the project by hiring contractors for tiles and paint. Lots of sweat equity on this one. Purchase price was 173000 (with a new AC at closing for free). Comparable next to the house: 200k! Rented within a month for 1500$. Cashflowing 350$ after all expenses.

And again last month. Same street, same house (even a shy bigger, 100 sqft more) but got it cheaper for 167000! Appraised at 195000 before renovation. Currently doing the reno but this time, I hired people to do all the floors. It will rent also for 1500. Same cashflow, $350.

What I wanted to share is that the first step was crucial. It wasn't a great deal, it was pretty on par with market. But somehow, it just started everything. All the money making happens after the first step.

So ultimately, don't be afraid of making a "eh" deal. Don't buy something stupid too. I had made calculation on the townhome. But if you are looking to enter in the RE investing, a townhome is great as the HOA covers a lot of repair and it's fairly turnkey.

Wishing you best.

Charles

PS: Tips on the first purchase if it's not a perfect deal:

- Buy in an area that is growing

- Buy close to shops/restaurants

- Buy where the population grows

- Buy something not too old, like 2000+

This will avoid to own a property that could potentially go bad. With these criteria, that you can find on "bestplaces.net", it should always keep or grow in value.

I work with the Don Callahan Team (Keller Williams). Very happy with their service. https://realestateinsavannah.net/

Great to see investors in the same area! Quick question... Do you guys have good recommendation for flooring people ? I am planning to remove carpet and put luxury vinyl planks... Might need somebody to install that.