All Forum Posts by: Dan Gandee

FREE WEBINAR EVENT! Cash Flow BEAST MODE! Crushing Taxes With Cost Segregation Strategies

When? Saturday, January 27th at 10AM!
Where? Streamyard Online Webinar

Jason Cummings is a Senior National Account Executive with CSSI, Cost Segregation Services LLC, the leading Cost Segregation company in the United States. CSSI has completed over 45,000 studies over the last 20 years in all 50 states and across all asset classes of commercial and multifamily investment property. Jason has been with CSSI since 2015 and since that time has helped commercial and multifamily investors in over 20 states apply accelerated depreciation tax savings through an engineer based method of cost segregation. During his free time he enjoys singing karaoke, playing pick-up basketball, weight training and spending time with his 3 nieces and 2 nephews. Jason resides in his college town of Eugene, Oregon. He's very proud to be an Oregon Duck!

Talking Points:

1. Introduction and Background:- Ask about their background and experience in cost segregation.- Inquire about the types of properties they've worked with and their success stories.

2. Cost Segregation Overview:- Explain the basics of cost segregation for the audience's benefit.- Discuss the benefits of cost segregation and its impact on real estate investments.

3. Process and Methodology:- Explore their approach to conducting a cost segregation study.- Inquire about the methods they use to identify components eligible for reclassification.

4. Types of Properties Benefiting Most:- Discuss property types that typically benefit the most from cost segregation studies.- Explore how different property types might require unique approaches to maximize benefits.

5. Tax Implications and Compliance:- Talk about IRS compliance and regulations concerning cost segregation.- Discuss any recent updates or changes in regulations that might impact cost segregation strategies.

6. Client Case Studies:- Share examples or case studies of successful cost segregation projects they've undertaken.- Discuss the specific outcomes and benefits for their clients.

7. Challenges and Limitations:- Address potential challenges or limitations in implementing cost segregation.- Explore instances where cost segregation might not be as effective.

8. Future Trends and Developments:- Discuss any emerging trends or developments in the field of cost segregation.- Explore how technology or industry changes might impact cost segregation studies.

Open Forum Q&A - Limited to the first 250 Registrants 

Sponsored By: The Operative Group | ΓEA⅃ Broker

Co-Founders, Ed Zulyevic & Dan Gandee

Hit me up man! I'm always buying and selling STR's in Oregon. I've got one listed right now in Eugene! It's definitely been a good run, but I think there is still tons of opportunity out there. Great run down on this article and appreciate you sharing this info to the BP community.

Hello Rachel,

We should jump on a call and see if I could help on the mentoring side. Been in this business a while and can share some good insights. 

@Chris Watkins - 100% agree. If you or anyone has questions about value add ADU plays, reach out to me as I've tried to narrow down a few appraisers that can give us better clarity.

Totally makes sense @Chris Watkins - The only way we got around this was to seize a cash offer at market value. But in terms of REFI, I feel the only way to do this is a seasoning period of 24 months or so with valid income approach appraisal as a multi-unit property, showing a decrease GRM favorable to the market as well as a P&L that provides good cash flow/cap rate analysis. I know that in California, specifically San Diego, cash out refi's are happening all the time after junior ADU and regular ADU's are built. There is no way that the value of the construction costs + raised value of the total improvement value can be limited unless there is some seasoning period that makes sense to the appraiser and time for appreciation to really kick in. Quite confusing, but I know favorable appraisals are happening in other states.

I just did a breakdown if you are interested in building an ADU in Lane County, Oregon as well as The City of Eugene and Springfield.

Biggest advantage to building within the two cities is their pre-approved plans that can be streamlined to the permitting process. 

Biggest disadvantage to building an ADU within RR Zoning areas of Lane County is that it can not be used for vacation occupancy.

Love to hear what other people are doing within Oregon with their value add ADU plays?

This is a big market as I just sold one for all cash in 20 days for SFR + ADU (fully permitted and occupied).

@Cliff Benner - I typically like to hire owner/operators that own property management companies, meaning they have experience with MFH and MFH Parks. My current PM owns two parks and was carefully selected because he understood the unique tenant-landlord laws of these communities, water-testing standards, continuing education requirements, and total valuation repositioning for commercial property cap rate stabilization. I'd call other owners of MFH parks and ask them how they manage the parks. Typically the self-managed parks with owners that live onsite are the WORST operators because they do not have an outside perspective. They hide costs in their P&L and their time operating/managing isn't configured in the sale price valuation. Let me know if you have any other questions. 

I'm so glad this was a helpful forum article as I've had to learn myself most of these battles as we transition into new acquisitions or find out by accident :)
@Logan M.

Mine is passing on a 8 unit property over $10K non refundable earnest money when I knew I was going to stay in the deal. 

Love to hear some short but sweet stories in the comments that could help all of us as we progress in our investment journey!

GO!