All Forum Posts by: Derek Tuohy

Hi  I need to make repairs between tenants.  I have a contractor that gave an estimate to do $1700 in general repairs.  Should I try to have him fill out a W9 and sign some sort of contract since money over $600 is being exchanged for services?  This is what I have done with a more extensive rehab with my GC, but wasn't sure if this is standard for smaller repair budget and dealing with a handyman / sub directly.  Thanks in advanced?

Makes sense. Thank you!

Haha.  She is alive and well, and hopefully will stay that way for as long as possible. We are trying to get her estate and finances in order and this question was posed.  I will reach out to a CPA. 

Tax question.  I am joint owner with my mom on the deed of a rental property.  This property has more than doubled in value over the past 6 years through appreciation.  Regarding tax basis, is it more beneficial to gain full ownership upon her death from being a joint owner, or gain it through inheritance if she was the sole owner on the deed?  Its my understanding that if I were to inherit the property there would be a step up tax basis.   But if I were joint owner (as it stands now) and I decided to sell, I would owe taxes on all the capital gains from the time we bought the property.  FYI, she currently is responsible for paying the taxes and gains the tax benefits from ownership.  Thank you!

Fixture and finishes breakdown,with labor and materials breakdown.

Im looking for a good contractor line item spreadsheet to use for a scheduled rehab.  I still cant find one that I like.  Thank you for your help in advance.

Need some advise / recommendations please. I have a friend who purchased a distressed property with cash and is looking for a hard money loan to complete the rehab. She would like to pull out most of her purchase cash and finance the rehab with a HML. Most lenders that she has approached wont lend to her because this is her first BRRRR; no experience. One particular lender, that I use, will give her the loan if my name is on the note, using my experience instead. Im hesitant because I dont want it to interfere with my ability to secure financing in the future and frankly I not interested in taking on the risk without any potential reward.

1. Would consider a JV where I reap some of the financial rewards for helping her through the process and helping her secure the loan with my co-signature. Thoughts?

2.  What are some options regarding structuring this deal and the steps I need to follow?

3.  Any other options worth considering?

Thanks in advance!

His bid was nearly double than the 2 other bids I received on a full cosmetic renovation.  Thanks for the comments. 

Is it normal for a contractor to charge $150 fee to inspect a property in order to give a bid/line item estimate?  

My accountant does not typically deal with real estate investors, so she does not have a standard spreadsheet available. Tempted to hire a bookkeeper that deals with real estate investors, however I only have four doors currently and I don’t think it’s necessary.