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All Forum Posts by: David Butler

David Butler has started 2 posts and replied 33 times.

Post: New Investor- any advice is welcome!

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

Welcome Quan!  You are in the right environment to learn all things real estate.  What are your real estate goals?  If I can help, please let me know how!

Post: Howdy! I am Mike!

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

Welcome Mike.  Wishing you all the best in your real estate journey and if I can help, please let me know how!

Post: Ask your favorite BP podcast host trending questions!

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27
Quote from @Michelle Sharko:

Not sure if this will apply. I’m new to all of this. 
I already have an LLC, I'm wondering to set up trade accounts to get the discounts for Remodleing projects example Wayfair, Home Depot etc.. can I do this with my existing LLC?
use my EIN #? Instead of using my own personal SS# to open up credit card accounts to purchase items. Trying to keep my personal credit from getting strikes every time I open a credit card or punch my limits up. 
Good idea or Bad? 


I'm interested in more educated reponses than I can provide. Will a D&B number allow your business to be treated as its own entity when applying for credit as it is my understanding that the LLC is still relying on you personally if you are the owner of the LLC. Interesting...

Post: STR/AirBnB in Lake Geneva WI

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

I have a Lake Geneva mailing address but live a couple of miles from Lake Geneva itself. I have not purchased a STR in Lake Geneva specifically because of the city's dislike of STR--the licenses (keep in mind that a STR license is $400/year), inspections and rules. I had heard about the 180 day limit, but it reads consecutive days so are you limited to just a 180 days total? IDK. The other sucky rule the city has is the minimum rental length is 7 days so whether you rent for 1 day or 7, it counts as 7. All this said, there are neighborhoods "in the city of Lake Geneva" that are not counted as part of the city. There is a neighborhood right off highway 50 heading downtown that is Lyons township so it has an LG mailing address, is located in what one would consider LG, but is not subject to the rules of the city. I just flipped a house in this neighborhood and someone from IL bought it and got a STR license from Walworth County. One street over is another STR so it is happening. Linn Township also is super close to the lake and not far from LG (which honestly has the lake and restaurants but that is it) and it might be worth looking at. I have a great agent if you would like an introduction.

Post: Out of State Investor Looking to STR in Chicago Land Area

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

The city of Lake Geneva has cracked down on short term rentals to the point that it is difficult to make a go of it.  There are a couple of townships in the proper of Lake Geneva or close (Linn, Lyons and Geneva) that might make more sense but will not be on the lake.

Post: Inherited tenant with constantly barking dog

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

Is the tenant with a lease and if so, what does the lease suggest? The lease will determine what you can and cannot do. If the tenant is MTM, communication is key. People are REALLY protective of their pets and I wouldn't have high hopes of this one conversation coming to a resolution, but it is key to let the tenant know that this barking dog cannot continue. Kindly suggest that this place may not be the best solution for their pet--they might enjoy a SFH so there is no one else making noise. This inherited tenant probably will not end up being a long term tenant as there really is not much they can do about their dog's barking and it is not going to change overnight. The sooner you have this conversation the better as every day that goes by without addressing this tells your inherited tenant that you are OK with their dog's behavior--just like the last owner.

Post: What is the new construction process? Dig lot, pour concrete, etc

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

Douglas:  I wish you all the best on this but this seems really high risk, but perhaps there is a big reward.  It sounds like you have the basic idea of your building but need specifics.  I would start with the architect and knowledgable agent to know what is going to give you the biggest return.  I still strongly suggest the GC--I don't know anything about Philly building codes but when I here big city, it think big red tape and your GC is going to be huge walking through the permit process.  As for subs, you probably need them all at the beginning so find the sub that makes you feel comfortable and ask them for recommendations on other subs.  Your excavation company is going to start work first but that does not have to be your first sub selected.  You need all before the permitting process (at least here in WI.)  My excavator gave me the foundation guy who gave me the electrician.  I go to church with my HVAC contractor so I knew him.  I honestly cannot remember where my plumber came from, but I really like him and have used him on more projects.  Eagles fly with eagles.

Post: What is the new construction process? Dig lot, pour concrete, etc

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

Wow, this question is wide open.  Do you have a general contractor?  If not, I might start there as they will already have the answers to your questions.  You will pay them for their expertise, but with such a high price tag, I don't know that I would take the role of GC myself and hire my own subs.  Should you decide to undertake the role of GC, before your break ground, you need to select all of your subs which will be required to get the building permit.  One sub may be able to refer another as they all need to work well together.  You also need to at least talk to the electric and gas company to find out their processes.  You don't need them today, but will shortly so it is best to have them lined up. In general, the order should look something like this:  excavation, inspection, footers, inspection, foundation walls, damp proofing, drain tile/sump pump, inspection, backfill, plumbing (if you are putting anything in the floor of the basement like a stub for bathroom, drain, etc.) Are you connecting to city sewer and water?  Well/septic? This has to be hooked up.  Pour basement floor (assuming there is one.) While this is all taking place, you need to get your wood package including floor trusses or iJoists there so you can start setting once you have the concrete floor poured.  iJoist/floor truss set, subfloor, exterior walls with sheeting and wrap.  1 story?  2 stories or more?  Keep going up.  In WI, house has to be under roof before the electric service main can be added.  Interior walls have to be added but each of your subs will know their process and what needs to be done before the next step.  I have probably missed tons of small decisions that needed to be made to be on schedule hence the recommendation for a GC.

Post: What is the new construction process? Dig lot, pour concrete, etc

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

Wow, this question is wide open.  Do you have a general contractor?  If not, I might start there as they will already have the answers to your questions.  You will pay them for their expertise, but with such a high price tag, I don't know that I would take the role of GC myself and hire my own subs.  Should you decide to undertake the role of GC, before your break ground, you need to select all of your subs which will be required to get the building permit.  One sub may be able to refer another as they all need to work well together.  You also need to at least talk to the electric and gas company to find out their processes.  You don't need them today, but will shortly so it is best to have them lined up. In general, the order should look something like this:  excavation, inspection, footers, inspection, foundation walls, damp proofing, drain tile/sump pump, inspection, backfill, plumbing (if you are putting anything in the floor of the basement like a stub for bathroom, drain, etc.) Are you connecting to city sewer and water?  Well/septic? This has to be hooked up.  Pour basement floor (assuming there is one.) While this is all taking place, you need to get your wood package including floor trusses or iJoists there so you can start setting once you have the concrete floor poured.  iJoist/floor truss set, subfloor, exterior walls with sheeting and wrap.  1 story?  2 stories or more?  Keep going up.  In WI, house has to be under roof before the electric service main can be added.  Interior walls have to be added but each of your subs will know their process and what needs to be done before the next step.  I have probably missed tons of small decisions that needed to be made to be on schedule hence the recommendation for a GC.

Post: Ethics Around Reducing Tax Liability

David Butler
Pro Member
Posted
  • Flipper/Rehabber
  • Lake Geneva, WI
  • Posts 34
  • Votes 27

I don't think this is an ethics question.  Unless you are cheating the system (lying), you are following the rules set up.  Every single person wants to pay as little in tax as they can and if the folks who write the tax code give you the ability to use it, it is perfectly legal (and therefore no ethics questions) to do. Hearing the president and congress whine about the rich not paying their fair share is ironic as they are the ones who decided how much the rich should pay.