All Forum Posts by: Chase Gochnauer

With the 100% bonus depreciation, could this make cost segregation on even a $100k single family a reasonable idea? Example, I purchased a $200k house about 60 days ago, if I could come up with $40-50k in <20yr items in my cost segregation, that would save me a considerable amount on taxes. But, I've never gotten a quote on a cost seg for a SFH to know the cost.

And also to be clear, from my understanding, the 9% domestic production deduction will go away, so for those of us that use that, this is really an 11% bump.

Had you done a 1031 exchange into another property when you sold it you would have deferred all taxes on the $21k but I don't know that you can do it after it's already been sold

Originally posted by @Vince Gethings:

@Chase Gochnauer My biggest issue is that my REI market and bank are in Michigan, and I now live in Hawaii. So, going in to sign anything just isn't an option. I need everything to be done via online/mobile. Like check cashing for example, with my USAA app (personal account) I can deposit checks very easily with my phone and the funds are available instantly...that's the level of service I need. I can also wire funds with my USAA phone app pretty easily as well.

Also, since I still work a full-time job and have my hands full with three kids (all <5 yrs old); I need to be able to automate transactions like bill pay, and transfers so I have the efficiency and peace of mind I need to grow. 

As for customer service and relationships...my bank agents are nice and easily accessible, however, those relationships have yet to be fruitful in terms of lending. I've brought them 6 deals that were all great (had no problem finding lending elsewhere at good rates) and every time they found something wrong with it to were they couldn't fund no matter if it was conventional, commercial or portfolio. For invoicing and categorizing these are functions of quick books, however, most modern business checking accounts have these functions and I find them useful and convenient. 

Does your bank offer business LOC's backed by RE and good CRE financing options and strategies? I need efficiency, convenience, and a bank that does it all...it's nice calling Jenny and chatting about the family, but I need a bank can close deals and help me structure and refinance my properties for growth.

I have a relationship with 4 different banks, all local or state wide at most. Two have LOCs against buildings, others do cash out refis using the BRRR method. Or will cash out refi one property to use the funds for downpayment on another. Mine will allow me to deposit checks via mobile app also which is great. I have not yet found one that will let me wire via mobile/internet. That would concern me a bit, though, due to the amount of fraud with wire transfers. Once it's gone from your account, it's gone, so strong security is important with wires. My bank will let me email them all details then they call for security code.

They all do a great job on loans, but honestly do not give much feedback on best way to structure/refi for growth. I put together the strategy and tell them what I need to do, and they get it done. Example, I'm the one that tells them I want to refi properties A&B to cash out enough for down payment on C, and they put together those loans.

There are lots of local banks with these options. I have one that will do wire transfers via a phone call, QB syncs, auto pay, and I can call and chat with my banker with no problems. I'm unsure what you mean by invoicing/categorizing transactions. Those are both Quickbooks functions, not bank functions. Mine even put a mobile deposit machine at my office so I can deposit checks without going to the bank since I'm 25-30 min away. I go into the branch to sign closing docs on loans or get cashiers checks, that's about it.

If you go with a large bank, you may get more amenities but you will be just a number as opposed to building a relationship with a local bank that may make financing much easier to get.

I do not see any ethical dilemma here, he even told you that he was doing this. It sounds on the up and up to me.

@Daniel F. Harb Yeah I plan on slowing down the first 6 months of next year just to make sure my large complex transition goes smooth. I may still do a house or two a month but I'm thinking that I'm really going to enjoy the larger complexes, but we'll see. Good luck to you for 2018!

@Daniel F. Harb Yeah I plan on slowing down the first 6 months of next year just to make sure my large complex transition goes smooth. I may still do a house or two a month but I'm thinking that I'm really going to enjoy the larger complexes, but we'll see. Good luck to you for 2018!

@Colin Simon I can't speak for Daniel but in regards to your comment about the 10th, 11th, 12th loans and someone raising an eyebrow, it's honestly the other way around. Once I could show that my model works, and I had 5 or 10 under my belt, and took bankers to see some of the properties, it gets easier not harder. it eventually gets to the point that's it's not even a question on whether or not you can get the loan. You want to use local banks for this type of volume and they have weekly board meetings that approve most of the loans. This large complex I just received approval on was interesting as I was able to actually haggle terms to get the best deal as banks compete for business at that level.

@Daniel F. Harb I'll be honest I was in a unique position of having a good cash flowing business to help the growth accelerate much quicker than it would have otherwise. I think partners or private investors could accomplish the same task but would take longer. I essentially did the BRRR method on steroids, 2-3 houses a month by purchasing at the sheriff sale or just listed REOs. I would buy cash, rehab and refinance which would allow me to get majority of my cash investment back out. I had probably 6 houses going at any given time. I also did this on a small office complex. This allowed me to be in a position to move forward on a 72 unit apartment which I just received commitment letter on, we close the first week of January. As far as the market goes, my first 5-6 I would say were exceptional deals as the market was still recovering but since then, I really didn't get any special deals due to market conditions. As far as leverage goes, no doubt the higher leverage the higher the risk, but it's no question that higher leverage generates higher margins. When you can get bank money in the 4s, it's a no brainier to make a return on that cheap of money. There is the risk of the market crashing, but I feel safe at the 75-80% I'm at on my properties.