All Forum Posts by: Christopher Russell

Ann- I agree with how you see the question, but typically when people ask questions on a forum it's to find out ideas for their own decisions making.

OP- There's a lot of websites with info on hard lending, it probably differs from state to state. With 100k right now I would probably buy a couple Section 8 houses in downtown Delray Beach Florida In areas that have been designated for future change under the Community Redevelopment Agency. Or try to purchase another beach house and stage as a posh seasonal rental. Again, it's really what works in the area you live in. Best of luck, and watch out for vultures :)

That is tough to answer when you live in San Fransisco. Down here in South Florida you can do a lot with 100K, but in San Fran I don't know that to be true. If you are looking to just do a quick flip, you need to just start looking online using the MLS if you have access or if you're not a licensee, use Realtor.com. The way I got into Real Estate investing was by doing A LOT of research and investigating. Learn your area by using the maps function in Trulia, Realtor, Zillow.com etc. Drive around and check out what you see and think is a good deal. Zillow allows you to see what has recently sold, what has recently rented, and what is on the market now. Once you get an idea of prices in the areas you like, I would say continue to search in the areas you prefer. For instance, in South Florida the beach and downtown areas are the best for rentals; but the family neighborhoods out West have better school districts and are more appealing to families. If you want to create residual income, I have found that studio apartments generate a lot of money if they are in a great downtown area. If you could get into a duplex, triplex or four-plex; you would still be dealing with residential and you could create a money making machine if you get the right deal. Do you want to build a portfolio of property which brings in income every month and cash out later on in life or the best market condition? Or do you want to just do a deal and make some sweat equity? My portfolio is built on long term rentals that bring in decent monthly income; but you may want to just make a quick buck? Honestly, this is a really open ended question and you have to figure out what works best for you. Sounds like you should do a lot of networking with people in the area and get some ideas. Don't talk dollars, meaning don't run around saying you have 100K to burn; just start asking the right people the right questions in your area. I would highly recommend finding out what book the local Real Estate licensee testing center uses, buy it used and READ IT! If you are already educated in Real Estate, have a bachelors in Real Estate or have your license than you're good to go. But if not, take the time to learn what you're doing before you spend all of your savings. Just my two cents, you asked for it =)

Chris

I purchased a beach cottage on the East side of A1A in Palm Beach County Florida back in 2006. When I purchased it the previous owner made a comment that the neighbor built this room addition which was built right on the property line and he was not in approval of it, but never made a complaint. I was so excited to own a single family home with actual property on the East side of A1A that there really wasn't much that could have prevented this buy. Since then the neighbor and I have had several disputes, one which ended up with me calling the authorities to advise the woman that she was not permitted access on my property. This person is not particularly sane to say the least. The bottom line here is that I do not want to allow my neighbor to create an implied easement or a prescriptive easement because she decided to build an illegal addition onto the property line without taking into consideration that eventually she would be required to maintain the home. I do not want to contact the county zoning and start a huge fiasco resulting in her having to tear down the addition that has been there for 10+ years; I just want to cover myself legally so that I do not have to provide my property as access. For instance, if I ever want to sell the home, I want to be able to note that there is not an implied easement or a prescriptive easement etc.

All that being said, I am trying to find out what the best path of least resistance would be without getting into a Hatfield and McCoy situation.
Options:
1) Post a trespassing sign (this is a no brainer and I will do this immediately)
2) Create a document stating that I will not allow a prescriptive easement for access of the property, nor an implied easement and record the document under my address with the county?
3) Post a small sign that says no trespassing and also says owner of property will not allow a prescriptive easement or implied easement or any type of property access without written approval?
4) Send a letter from my attorney which will result in a massive blown out fight with my neighbor which I want to avoid at all costs.

If anyone has had an issue like this and can help that would be great. I really would prefer to keep code enforcement out of the picture, and would like to handle it myself, but ensure that I am covered.

Thanks to anyone who can help =)

Chris

Excellent, thanks for providing a real life scenario. I'm actually taking my real estate sales associate Florida state exam next week and once I hang my license with a broker I was planning on starting a property management company. In Florida you must be a licensee to property manage other property than your own and payment must go through your broker.
I currently only have 3 properties, but am on the prowl to get as many as I can seeing the lifestyle residual income can sustain!

I will discuss this with my accountant next week. I will also be discussing whether or not I should put my rentals into an LLC name to limit exposure, or put an umbrella policy on all of them. My thoughts are if I have an LLC, when I do decide to transfer money back to my name after a potential sale, I would have more federal tax exposure. Also, if I have the properties in my name, with typically liability coverage and an umbrella policy, my assets would generally never be exposed past my coverage. Thought?

Gotcha, then I would have to claim that payment as income as well so it might not be worth it. Meeting with my accountant to run some scenarios this week. Thanks for the responses!

I have read through many threads and get the idea that many people are under the impression that they can deduct their own time on federal taxes. By own time I am referring to completing required repairs, managing rentals, driving to properties etc. I would love to be able to have these deductions, as my portfolio of rentals is my business, but the IRS website seems to state that this cannot be done:

Rental Expenses

Landlords can deduct the ordinary and necessary expenses for managing, conserving, and maintaining their rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance.

Other deductible expenses may include:

Expenses incurred from the time a property is made available for rent and is actually rented.
Some or all of the original investment in the rental property may be recovered through depreciation using Form 4562, Depreciation and Amortization. Subsequent improvements may also be depreciated.
The cost of repairs may also be deductible. This may include the cost of labor and materials. However, landlords cannot deduct the value of their own labor.

Any advise on how to get around this?

I was referred to an attorney from a member of this forum. I contacted the South Florida attorney and she said if you are transferring within the family or to your own LLC it is not necessary to obtain new title insurance because you will still be covered through your families policy from the date of the transfer backwards. If anything happens after the policy became null and void with the transfer, than you would be on your own; but frankly that would be your problem anyway. She actually told me to use a quit claim deed if done within the family, that a GW deed is not necessary. She said why would you need to warrant anything if you are doing it directly from your name to an LLC or from your name to your brother etc etc. As long as you all know that there are no problems from the date of the title insurance forwards to
time of new transfer. This seems to be a topic of debate with no real clear answer, but in Florida I have been advised by legal counsel that title insurance will stay in effect backwards, but not forwards. Any future encumbrances claimed by prior owners will be insured through the old policy you had before the new transfer. Best of luck to all; and get it while its hot!

I was referred to an attorney from a member of this forum. I contacted the South Florida attorney and she said if you are transferring within the family or to your own LLC it is not necessary to obtain new title insurance because you will still be covered through your families policy from the date of the transfer backwards. If anything happens after the policy became null and void with the transfer, than you would be on your own; but frankly that would be your problem anyway. She actually told me to use a quit claim deed if done within the family, that a GW deed is not necessary. She said why would you need to warrant anything if you are doing it directly from your name to an LLC or from your name to your brother etc etc. As long as you all know that there are no problems from the date of the title insurance forwards to
time of new transfer. This seems to be a topic of debate with no real clear answer, but in Florida I have been advised by legal counsel that title insurance will stay in effect backwards, but not forwards. Any future encumbrances claimed by prior owners will be insured through the old policy you had before the new transfer. Best of luck to all; and get it while its hot!

There is no real quick answer to that question. Making money in real estate isn't easy like they show on TV. My family has taught me a couple general rules to follow, they are not always easy to follow, but if you do you should come out smelling like roses.
1) Location Location Location
2) Buy low, sell high
3) The property must be a sustainable investment at the least, and provide a good return monthly at best.

In Florida a good rule of thumb is look at what people come here for, the beach! Buy near the ocean in a good market and you'll always be able to rent it if need be. I havent directly answered your question because it sounds like you think finishes are going to drive a price, and in my opinion that's not nearly the only thing to look at.
Each city has a CRA (community redevelopment agency) and a City Master Plan or Comprehensive Plan (if its a large city). Within these documents you can look at the next 10 year plan for each sector. This will provide a good gauge on if the area is going to be built out or blighted areas planned to be redeveloped etc. In addition, read A LOT of this forum!

Now to answer your question directly. A home is worth what someone is willing to pay these days, not a penny more. An appraiser can say what they want, but if someone doesn't want it, its not being purchased. I have always tried to get the most bang for my buck and keep things looking neutral. Nothing striking if you will. I would go with porcelain floors with minimal grout lines. Nice wood cabinets. Cheap granite etc. This is also depending on where the house is. In Florida Hurricane windows help A LOT!

Lastly, I do not think you are going to get the answer you need in a quick forum blast =)
Real estate investing is a life long thing IMHO. You read a lot or have a mentor to advise. Get a real estate licensee book and just read the entire book, even if you do not want to get the license. But you have to do your homework just like anything else. Good luck!

My family and I own a condominium building and we want to reallocate certain units within the building. In Florida there are no "endorse" options within a title insurance policy. The only thing they will do is provide a "reissue" credit, which is minimal. If I transfer a unit to my brother in the form of a general warranty deed I will void out the TI policy; but I would be able to sue him which would allow the policy to be active. I would prefer to just get title insurance again and have the reissue fee applied, but the title companies want to do the entire process all over again which is going to mean approx $900 per unit, x4 units=$3,600. For that kind of money I'm debating if I should just bite the bullet and not have the policy, and sue in the future if required. Mind you, all of the units were involved in short sales, foreclosures, and one bankruptcy so I am not confident in that history. But on a positive note Fidelity, Chicago and Stewart all issued owners policies; so there would have to be three of the largest companies all making mistakes! Florida is horrible by not allowing endorsements within the family, WHAT TO DO?! Any OPINIONS would be much appreciated.