All Forum Posts by: Derrick Gordon

These calcs are extremely amazing tools, but i have found that it does not have (or i do not know where to input) certain expenses or income.

1. If I am using a hard money lender I will be using "All Cash" but the Calc Does not offer an option for points if you pay cash, ONLY if you are financing. 

2. If you have other income that is not Monthly income there does not seem to be a place to put that either. Only complete income number is for rent, but if I have a one time payment or something that is not recurring how do i add that in, or are you saying that is something i should not add into the equation.

@Ned J. does that not mean you should be more meticulous about keeping personal and business separate. I was told that what you are saying is correct about comingling finances, so if you do that you are in trouble.  However, if you do what you are supposed to and keep it separate, you "should be" just fine.  

Something about this does not seem right, has anyone with Multi Family analyzation experienced this? I am under the assumption that you need a full 12 months of the income and expenses to accurately break down a deal to see if it is a good or bad one. This building is only sending 6 months. If anyone can lend some feedback, that would be greatly appreciated.

@Natalie Kolodij  @Steven Hamilton II @Jana Cain I was told by the person putting together my paperwork that Corp does not subject me to SE Tax. Also, he said ill have same kind of asset protection under Corp, and the main reason people in Real Estate use llc is for Foreign Money (investors) because only citizens and residents can use S Corp. I am just trying to get a more accurate picture of what i'm doing and the competency of the person handling my paperwork. He def said S Corp is better for tax purposes. Please Advise and also anyone else paying attention to this thread.

Thank You for those details and insight! @John Underwood

I see most people have an llc - is there a significant reason why?

I see most people have an llc - is there a significant reason why?

Exactly what @Tyler Mullen . Google for local REI groups in your area, or go on here and find a local Forum and start conversing with them. Finding a mentor is a bit tricky, but from what I have been told, you need to figure out how to add value, and be curious, ready and available to learn. All four are usually what mentors are looking for. Good Luck @shakeal

I think anything is worth the purchase if the number is right. Contact a few HVAC people to gauge the cost and make sure that is reflected in your purchase price, Along with what that extra utility cost would be. If it makes sense it makes sense. 

@Phillip Davis be careful of the repair number, I would use the breakdown on there to see where those cost come in and what will need to be fixed. Also, if you do not have contractor experience, read up on what estimate cost would be. Also, make sure the ARV of the Duplex is fairly accurate. All in all, I'd check those numbers because your margins are kind of slim. Best of Luck.