All Forum Posts by: Glenn Banks

@Christopher B. No need to call names. It is unprofessional. So I take it that me diminishing your stated skillset and devaluing what you do every day has gotten your attention ? Isn't that the entire summation of your postings on the  thread YOU started ? Turnabout is fair play, my friend. You got a guy to install doors for $25 a door and you're still whining, You sir are a SORE WINNER. Now sell that property and move on to the next, capturing all that profit. Good luck.  *BANKS OUT* 

@Christopher B.  I understand where you're coming from but your perception of how a carpentry contractor should see value is off kilter. Quite naturally it doesn't align with a typical investor valuation because we're all trying to live well. We're all trying to get our kids the nice shoes to wear to school. You say that you've done that type of work, which I'm sorry I have to question. If you have done the work, you wouldn't have had to ask why is he charging what he's charging. From your description of the support you provide on projects currently , I would call what you do an "expeditor", not an active project manager. So to me an expeditor is worth $18 an hour. So that's what I value your time at. I actually started thinking about the prices I quoted before, and I decided that I'm now charging $200 a door for you, everyone else $150. 

Christopher B. I would charge you $75-$100 a door. Sometimes it takes more than an hour. Are the doors delivered onsite damage free ? Or does he have to go get them from a supplier ? Are the doors pre-stocked next to the door opening by you or a laborer so they can installed faster ? Or do the skilled carpenters have to hump the doors up to their final install location ? What about wear and tear on equipment ? What about overhead ? What about the crew eating lunch ? What about fuel in the large gas guzzling trucks ? My typical fee for myself working and running a project is $80 an hour. I pay my guys $25-30 an hour or some derivative of that.

Jacob F. Stagger your offerings, only have 2 for sale at a time. I would say when opportunity knocks,answer. Buy all the properties.

Cap rate is too low

Jeremy I. Tell him to stop work, and give you an invoice for work performed up to that point. Pay the amount on the invoice or negotiate a settlement amount. When you're ready to hand the check over, have him sign a lien waiver. Have him remove all equipment from the project site, keep your materials, you own them. Request all receipts and documents related to your project, you own them also. You need to check to see if he has paid for all materials, equipment rentals, etc. attached to your project. If he hasn't, you are on the hook for that amount form the suppliers. If he owes them, deduct that cost from settlement amount. Also instruct him not to return to the site for any reason, if he needs something, he needs to contact you.

Luke Cleveland If you take the age of the property into consideration, you're going to have to replace the roof, water heaters, and HVAC in the next 4-7 years. Then the windows shortly thereafter. That's a lot of capex which may make this something you might break even on. Wow, I didn't know taxes were that high in Wausau, I thought Milwaukee was tough. Good luck

Alan Faitel These unit have their place in real estate, I would say in a low to mid level rental. These cabinets don't have European hinges, which is a drawback in my estimation. The units have solid oak fronts , which is a plus for durability. Drawer slides are low quality. Contractor applied finish on job site level will not meet the quality level of a factory applied finish. It's up to you.

@Crystal S. Depends on what your company structure and accounting method as far as the tax question. Just attended an REI seminar and added this to my notes from the session, I can't confirm the accuracy of the info but will provide it as food for thought.

" If you are structured right with llc's, you can avoid capital gains taxes.You, the property seller, for the sake of discussion, will send the property through

escrow at the approximate book value of $50,000 to Property Inc. A title insurance

policy is issued to Property Inc. Now Property Inc owns the property and you, the

seller own the stock in Property Inc. There are no capital gains because you did not

profit from the trade. Next, Tax Savings Inc. acquires Property Inc from you by

purchasing the stock of Property Inc for the sum of $50,000, and issues you a

demand promissory not in payment for the stock. This is an interest bearing note,

even though your paying it to yourself. It is profit for Tax Savings Inc and a personal

deduction to you. Remember Tax Savings Inc profit is in Tax Free Nevada. Now Tax

Savings Inc owns Property Inc. Property Inc owns the real estate property, and you

own Tax Savings Inc. Where you are or the property is, can be anywhere. It is

immaterial.

2. flipping/ wholesaling:Now comes the buyer. Tax Savings Inc. sells Property Inc. to the buyer. You do not

sale the real estate property; you sell Property Inc., which owns the real estate

property. You sell it for .... $150,000. Tax Savings Inc has a $100,000 capital gain or

profit, and Tax Savings Inc is a Nevada resident. No state capital gain tax, no state

income tax on corporations. No state has any claim against the profit of a Nevada

Corporation. There is no state tax on it. It's the American Way. By eliminating the

cost of escrow, transfer fees and taxes, you more than paid for the cost of your

Nevada Corporation."

Crystal Spence A simple way would to have 1 entity to buy and hold and another to flip. Lock up the buy and hold entity in an NV land trust or each property you acquire in a land trust. The flip entity really holds no assets that can be attacked. The flip entity holds properties for a short time only, that which you cover with builder risk insurance.