All Forum Posts by: Claudio Zocchi

It is very easy to see the results that everybody shows online, flying in private jets, not working, building hospitals in third world nations, but I want to hear the REALITY of what life is like for the seasoned investor out there!

I will begin by saying I am over 23 years in the business and full time form over 20 of that.

I work at it every day, there are always problems to solve from tenants, to banks, city inspectors, CONTRACTORS (LOL), etc...

I am blessed enough to have so many connections in my market that I can maintain deal flow of great off market properties with equity and not have to spend a ton on marketing. This allows me to offer great deals to my investment buyers around the world that like to invest in the Cleveland market.

I never missed any of my kids events (unless I wanted to, LOL)

I have made a TON of connections which has opened up many business opportunities for me because of real estate.

I am able to travel to Florida every month and still run my Cleveland Real Estate Operation. (I fly private on my big jet with 300 of my closest friends and allowed Spirit to wrap it for marketing purposes :-) )

My biggest challenge is that I believe Residential Real Estate can provide an amazing lifestyle, better than most surgeons, but it is not scalable enough alone to take me to the next level.

My internal debate is should I move on from what I know so well after doing more than 1000 deals and start swinging for the fences on repurposing shopping malls or something, or stick to what I know and do well. (NOT LOOKING FOR AN ANSWER, JUST GIVING EXAMPLE OF MY OWN DILEMMAS AS A SEASONED INVESTOR)

Let's hear how REAL LIFE REAL ESTATE INVESTING is going for you and what can make it better!

Looking forward to responses!! Thanks!!!

I am becoming worried about the huge cultural shift against landlords. Not just the moratoriums and cancel rent, but social media has become an echo chamber of anti-landlord rhetoric. I have been attacked out of the blue on social media, yet I have some of the nicest homes, most tenant-friendly policies (except for very strict screening policies) and very few evictions and code complaints over my years doing this. I give back to my community and actively participate in it, but lately people just get mad that I exist.

It doesn't affect the actual operation of my business YET, aside from the moratorium, but I know politicians are listening, and I see how the winds are changing. I am not afraid of nationalization or any other conspiracy theories, but I am getting worried about the reactivity and vindictiveness of the average nutcase (which do exist on both ends of the political spectrum). I've always just held my property in my name and easily discovered LLCs, but on my to-do list now is how to get them into an anonymous ownership entity without upsetting my mortgage companies or insurance company. I do like the newer PC term "housing provider" but the angry people will always revert back to "landlord" just because it sounds so evilly Victorian.

Just crazy times.

All this happened in my country and it destroys the bussiness. Because if you cannot raise rent, you cannot evict, you cannot make people fulfill the contract (or at least governament doesent help you to do so) in the end return rates go down.

My country went from 5-6% ROI to 1.5% ROI currently. A disaster. And its all fault of the left wing media that convinces poor and low middle class that everything should be free (except left wing politicians obviously, those must be expensive)

2 Votes

@Bill B. @Theresa Harris

Thanks for the reply. That was my impression too from another thread. Most tenants seem to be paying rent as usual.

I hope endless extensions dont give tenants the impression that they dont have to pay rent..

0 Votes

How much do you pay? I do the same as you i basically give my accountant the final numbers and they just type the numbers in the forms.

They charge me around 1.000 usd for 1 form 1065 for the LLC and 4 forms 1040NR plus all the annexes

Originally posted by @Johann Jells:

Originally posted by @Basit Siddiqi:

Originally posted by @Johann Jells:

@Johnny Quilenderino @Russell Brazil I'm curious, what do these accountants do for you besides data entry? I did my own Schedule E for many years using Turbotax, and now I give my final category totals and other numbers to the accountant who simply enters them and charges me a lot of money for it. It's not like I'm giving him shoeboxes of papers! I honestly have a hard time seeing the value, it's not like I'm getting constant advice about stuff.

It would be ideal for that professional to do the following when you provide him the information
1) Determine if there are potential other expenses that you did not list
2) Determine if the numbers that you provided make sense. I often get lists from people and I will ask "Does $100 for insurance for this property sound accurate?" In which case they would say, no you are right, i forgot to include another figure.

Also, it would be ideal if your CPA advised you of important situations in your business -
I.E. You are selling a property, should you do a 1031 exchange or put the money into a QOF
I.E. there was many tax law changes last year because of COVID - did he advise you on any of the changes?

After nearly 20 years of preparing my own form E, I have a pretty good feel for all of those numbers and when I have have all my data correct. My business is mostly managing my rentals not making deals, so it's just not that complicated. It does really appear that I'm just paying for data entry in a glorified Turbotax.

0 Votes

But its not like the guy stole a pair of shoes. He killed somebody.

Originally posted by @Blaine Atkinson:

@James Wise

So, in your opinion, one arrest 20 years ago equates to a poor tenant? I agree that someone with repeated behavior it's definitely of the table.

I am not trying to be argumentative, just want to understand your standpoint. I work with people after release very frequently and we stay in touch with them for long periods of time.

If you could, please elaborate on your thoughts.

1 Vote

@MarieChele Porter Its not rare to have disputes with tenants. Would you be comfortable discussing something with somebody who did 25 years in jails for murder?

0 Votes

@Theresa Harris So a very small % of non paying tenants right?

0 Votes

In your opinion what % of your tentans stopped paying rent because of the Eviction Moratorium?

I think the decision to extend the eviction moratorium is a disaster, since it transfers all the tentants monetary problems to the landlord ONLY. Also a lot of tentants will feel they have the right not to pay for rent. I come from a country where things like this become a "human right" after the left does some good propaganda.

i dont get why with 4% of unemployment everybody could pay rent just fine but now with 6-7% of unemployment nobody can.

All this being said, i currently have 10 units in FL and so far all the tentants are paying rent every month just fine.

0 Votes

All Forum Posts by: Claudio Zocchi

Claudio Zocchi has started 1 posts and replied 7 times.

Post: Be Honest.. What Challenges are you having in this business?

Post: Tenant payments after Eviction Moratorium

Post: Accountant fees, am I paying too much?

Post: Renting to a violent felon?

Post: Renting to a violent felon?

Post: Tenant payments after Eviction Moratorium

Post: Tenant payments after Eviction Moratorium