All Forum Posts by: Daniel Garcia

Hi everyone,

This is a listing I have had for some time and the seller has recently become very motivated. The numbers are based on estimates I've received from local contractors and a quick CMA to get potential sale price. The owner wasn't really ready to let it go until now. Their circumstances have changed and they need to sell quickly. We will be making a drastic reduction to selling price soon.

I know a hard money lender that takes 3 points and charges anywhere from 10% - 14% interest so I used that for loan numbers/holding costs.

Demand is very strong in this area for remodeled, move in ready homes, so I'm confident in the potential sale price. If interested, let me know and I will forward the listing. As always, do your own homework.

-Danny

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I'm not interested in the gun debate but am a concealed carry permit holder.  However, I rarely carry.  

I am also trained in jiu jitsu.  Rule number one is always avoid a situation where there could be any danger and try de-escalate any situation that you can't avoid.  I think this solves about 99% of problems.  But if it does get to that point where I have to defend myself I keep in mind what my professor says; "Once they put their hands on you, they made the decision that you are going to break their arm."

Be safe out there.

Glad I stumbled across this thread.  I am currently analyzing some properties in the Palm Beach Gardens area as AirBNB.  

For those of you with experience in short term rentals, do you use sites like AirDNA for statistics?  Are there any other reliable sites to help with analysis?

You're absolutely right @Tim Herman.  Thank you!  I will adjust my numbers.  I kept my rule of thumb profit as a number rather than a percentage.  Instinctively I knew something wasn't quite right.  I should've started back at step one.  I got some more information on the property today and am going to run the comps just as an exercise.

Thanks again!

Hi Everyone,

I was contacted by a client from my accounting practice about a property she is planning to sell. I took a look at the property with a friend of mine who has a lot of experience in flipping and developing properties. The structure and roof are in great condition and the property has been very well maintained. It is just very dated. The house is a 3/3 on an oversized lot. The house square footage is also a bit larger than the others in the neighborhood. There is space to build a dock with direct access to the Loxahatchee River. 

I quickly made the following report just based off my friend saying that we would need $100k to update everything to bring it up to the neighborhood standard.  

My question is this:  what sort of profit would you look for on this type of deal?  I typically analyze properties in the $250k to 400k range and want $25k to $30k as profit.  I am also not sure about the holding costs.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Thanks,

Danny

Originally posted by @Yonah Weiss:

Originally posted by @Daniel Garcia:

Originally posted by @Yonah Weiss:

@Daniel Garcia Welcome to BP. When you say the license laws don't allow to take commission, do you mean the CPA license?

In order to collect a commission in Florida you have to have a real estate license.  As a CPA I can only collect fees based on my work as a CPA.  I can't receive a referral fee or commission.  I know there are other accountants that work their way around this but I'm not willing to risk losing my CPA license.  It'd be much easier and less risky for me to just get my real estate license, especially since I want to take a more active role in my real estate business. 

I am not a CPA, nor a licensed broker currently, and on deals that I have helped 'broker' or 'refer' I have received compensation on the closing statement as an 'adviser' or 'consultant'. Is that allowed in FL? 

Florida Law:

 475.42 Violations and penalties.—

(1) VIOLATIONS.—

(a) A person may not operate as a broker or sales associate without being the holder of a valid and current active license therefor. Any person who violates this paragraph commits a felony of the third degree, punishable as provided in s. 775.082 or s. 775.083, or, if a corporation, as provided in s. 775.083.

Florida Real Estate License Law requires that an individual who, for another, in Florida , for Compensation* or valuable consideration will need a real estate license if they perform any of the following when dealing with real property:

• Appraises
• Auctions
• Sells
• Exchanges
• Rents
• Negotiates a sale
• Advertises or represents as an individual involved in the real estate business, through either oral or written representation
• Procures sellers, purchasers, lessors, business enterprises or business opportunities
• Closes any transaction which results in or is calculated to result in a sale or exchange and who expects to receive ANY compensation or valuable consideration

Real property or real estate means any interest or estate in land, or enterprise or business opportunity, including any assignment, leasehold, sub-leasehold or mineral rights. It does not include a cemetery lot or right of burial in any cemetery; nor does it include the renting of a mobile home lot or recreational vehicle mobile home park or travel park.

*Compensation is anything of value, paid, received, or expected to be paid or received or remuneration for services rendered. 

All that being said, I know plenty of people who wholesale as you describe and have not had a problem.  For me, it is not worth risking my CPA license since getting a real estate license is so easy.  

Originally posted by @Yonah Weiss:

@Daniel Garcia Welcome to BP. When you say the license laws don't allow to take commission, do you mean the CPA license?

In order to collect a commission in Florida you have to have a real estate license.  As a CPA I can only collect fees based on my work as a CPA.  I can't receive a referral fee or commission.  I know there are other accountants that work their way around this but I'm not willing to risk losing my CPA license.  It'd be much easier and less risky for me to just get my real estate license, especially since I want to take a more active role in my real estate business. 

Originally posted by @Brian Garrett:

Hey Daniel welcome to BP and good luck on your search in PBG/Jupiter. 

There's not many deals to be had so you really have to dig around to find off-market properties.

 Thank you Brian!

I will have to work hard to find them, but they are out there. I came across a duplex earlier this week that is FSBO. There's an area with a number of multifamily properties over here that I'm interested in. The only reason I know it's for sale is because I drive by on a regular basis. He's not even using craigslist to at least have awareness online.

-Danny

Originally posted by @Gary Manus:

What are the advantages and disadvantages of closing a loan under your LLC vs individual. I have a client that asked this question.

 Hi Gary,

I would check with a lawyer on this. In my experience, the banks still hold the members of the LLC personally liable for the mortgages unless there is a long history of income and assets already within the LLC. The deed may show the LLC as the owner of the property, but ultimately it is the members' credit on the line.

-Danny

Hi Everyone,

I'm a CPA with 15 years experience working with investors, developers, and homeowners providing tax planning strategies, accounting services, and investment analysis. 

I've been referring out my clients who are looking to buy real estate for years but the license laws don't allow me to take a referral fee from any real estate closings. The numbers agents were getting from those deals compared to my fee for the investment analysis and accounting services was a joke so I've decided to reactivate my real estate license. I am now actively searching for rehab deals or high ROI rental opportunities in the Palm Beach Gardens/Jupiter area.

I am more than happy to answer any tax questions or review any investment analysis you are working on.  I want to build relationships here so we can all help eachother be successful in our investments.