All Forum Posts by: David Dachtera

I think Brent's point may have been that (auto) leases are a deductible business expense (at the end, you don't own it, you return it) while (auto) purchase loans may be difficult to deduct fully unless it is somehow an income producing asset of the business entity. Consult your tax accountant - I am not one.

How do you figure, Richard?

If my entities average one loan per property and I have two or three properties in each entity, but hold none of those properties / loans in my own name nor am I personally liable for them (non-recourse), how can a bank complain that -I- have too many mortgages outstanding? (Hint: -I- have none, and my entities are not me.)

@Paul Felix,

Not to defend Phill Grove or anyone else, but it's not surprising that you would find his name so sparsely in the public records. Most savvy investors and educated investors do business through entities and not in their own name for purposes of liability and asset protection. It also prevents issues with lenders complaining "you already have too many mortgages outstanding".

@Scott Johnson,

A lot is going to depend on your financial goals.

@Max James already touched on the idea of beginning with the end in mind as taught by Dr. Steven Covey (The 7 Habits of Highly Effective People). You may want develop your goals a bit more and bring them into sharper focus. It's hard enough to hit a target you don't have, but also hard to hit a target you don't see clearly.

Equity has value, but that value is volatile, as we have seen thru the recent crash. Equity tends to be illiquid and tough to access when you need it.

Cash flow also has value and is rather more liquid. Cash flow in your business will support growth and allow you to leverage your equity.

You'll want to strike a balance between those two. Your paycheck should support the household. Learn to self-direct your retirement accounts so you can access those funds, as well. Business income should support the business. Ultimately, you want the business to provide your "paycheck" (in quotes intentionally) rather than a j.o.b.

Most folks want to eliminate debt, yes. However, learn about arbitrage first so you can learn to put otherwise dead equity to work for you producing income.

Remember also that your time has value. Every hour you spend fixing toilets or mowing lawns is an hour not devoted to growing your business.

Think this thru now while you're devising your strategy. Then, plan your work and work your plan.

@Andriana Babikian,

I have done the FB three-day as well as others and it is, as is said here, some information, some motivation and some selling - they're pushing a circa. $40k program.

However, for $197 for three days, it's actually a fair value, in my estimation.

Like others here, I've been through other education and have only a limited amount of experience. Still, I came away from FB's 3-day with notes I never got anywhere else.

So, from that perspective, it was money and time well spent for me.

That said, the 3 days will be quite grueling - 9 hour days and since it's held on the weekend, conveniently available lunch places will likely be closed by the time they actually break for lunch, often after 2pm.

If you want to learn salesmanship as well as the RE info. let yourself listen to the pitch for the upsell. Engage them to the point of frustration because they will pursue you to get the "yes" that you know going in you're NOT going to give them. You will learn a lot about pursuasion and overcoming objections.

REI isn't just properties and closings, y'know, it's also engaging with potential partners, team members, buyers and sellers - you're going to need some keen marketing "arrows in your quiver" to be successful in REI. These people are highly trained salespeople - never hurts to learn from the best.

Just leave your checkbook and credit cards at home so you're not tempted.

My $0.02...

Disclosure: I have no relationship of any kind with Than Merrill or Fortune Builders

@Edward Briley

Since you didn't cite the comp.'s I'd need to research them and see where your market really is according to the buyers. We often disagree with the buyers, but in the end, any market is only worth what people are willing to pay.

Dunno, Edward.

A couple in my investing group just posted on Facebook a (carefully redacted) image of their latest net-profit check on a fix-and-flip: $97K on a mid-scale home in a middle-class area of the Chicago suburbs. One of the group leaders just made $150K net on his most recent rehab. Other profits range down as low as $20K. So, there is money to be made.

However, I can see where the current economic climate may be outside some folks' comfort zone. It takes savvy and expertise in property selection and analysis as well as keen negotiating skills and, sometimes, knowing when to walk away rather than pursue a marginal deal.

In an earlier post, you cited the difference between your P&I and PITI as being around $415. I'd be curious how much of that is insurance, and are those insurance issues due to your location (VA, possible hurricane risks of flooding, tornado damage, wind damage).

For comparison, my property tax works out to some $370/mo. Doesn't seem to be "depressing" the housing market as much as the dearth of lending is doing. Assessments in this area have been lowered the past four years running. Only this year is my assessment raised due to the market recovery.

Just one area, I grant you, but not atypical of what Chicago Metro has seen in the greater scale.

For what it's worth...

I'd be careful with that word, "apprentice".

In the skilled trades, apprentice is a paid position, sometimes with benefits including on-the-job training. Best not to bandy it about lightly....

@Account Closed noted, you seem to have a bit of chip on your shoulder (Sorry - I'd be doing you a disservice if I tried to sugar-coat that.) Many of us end up getting in our own way because of that.

See, about half of RE is going to depend on the knowledge you can acquire and how well you learn to use it.

The other - and perhaps more important - half is going to be your ability to connect with people and build a team of people who want to work with you. That's where the Dale Carnegie and other personal development stuff comes in. People tend to like and trust others who are like them. So, we need to learn how to empathise with and attract people looking to join an investor's team: attorneys, accountants, title agents, RE agents and brokers, etc.

To your original point, "gurus" don't outright lie - they do, however, tell less than the entire truth.

No money down? No, but that doesn't say it needs to be YOUR money. You can partner with someone who brings the money while you provide some other item of value: manual effort, other relationships, contacts and influence, ...

Private lenders and other money partners? Well, they don't advertise themselves as such (usually). Your networking and relationship skills help you find them and cultivate the relationships which help you build rapport and develop the relationships necessary to keep from running afoul of the SEC. You need to be focusing on lenders who look at the deal first and you second. You will still need either a solid reputation via experience or a favorable credit profile, please understand that. If you're talking to the right private lenders, your personal income shouldn't matter. It's the deal that counts.

There are usually multiple REIAs in larger metropolitan areas. Google the ones in your area (Philly) and try to attend a meeting a week since most of them only meet once a month. Introduce yourself, open conversations and build those relationships.

When we're starting out, perhaps our finances are not the best and we're looking to ease that pain as quickly as we can. Been there, done that, got the T-shirt, the coffee mug, the key fob, ... Slow down, focus on what comes first: people.

No one does it alone, we need other people as much as they need us!

Hope this helps...

Hi, Folks,

Want to solicit some input on doing new developments using modular construction.

Just to make sure we're on the same page, let me define the distinction:

Manufactured homes:
Delivered to the final site in a completed state. Example: Trailers, mobile homes

Modular homes:
Stick-built in a factory to exact measurements, delivered to site in pieces which fit on flat-bed semi-trailer, assembled on-site after foundation is poured and first floor is laid down (OSB or plywood per code).

Home building is beginning to pick up in my area and I'm exploring the possibility of developing land and providing modular homes which can be completed more quickly than traditional stick-built-on-site homes.

Experiences would be the most helpful. Opinions are welcome, also.