All Forum Posts by: Gonz Trevino

Hey there! Way to start young I love it! Couple of things to consider (and I say this because we don't know how soon you get your first property, could be next week could be in 2 years!). - Strongly suggest filling your mind with more knowledge and information about this world. You're in the right place! I love the books Millionaire Real Estate Agent, Hold, and Cash Flow Quadrant. Watch many of the BP podcasts and read the blogs as well. - Focus on saving and growing your income! Do you have a 9-5 job? Find a sales gig or something to do on the side to supplement it. Start a small low capital business on the side to make more money. Don't spend on needless expenses focus on saving and once you have many multi family properties it will be worth it. Imagine retiring on passive rental income in your early thirties? - Eyes on the prize and stick to your goal! Good luck my friend!!!

I just read the other comments on this thread... and I'm not going to lie I chuckled a little. It's kind of silly to expect to go to a real estate networking meetup and NOT expect the different people there to share the deals they are working on. Why would a wholesaler go meet a ton of flippers and landlords if he isn't allowed to share with them the properties they have to offer? On the other side of the coin why would I as an investor want to go there if I have no opportunity to see some of the deals others are wanting partners in? That is almost 50% of the advantage to going to these meetups. LOL

I am fairly certain Guy's intention was to say I'm not going to try to sell you a program, coaching, or anything of the like. You're not there to be pitched on a product or service, you are going there to learn, meet other investors and potential biz partners, and see the deals people are working on and looking for partners on.

Pretty silly to me. :)

Looking forward to seeing you guys there!

Originally posted by @Jason Bott:

@Gonz Trevino I comment on these topics often and feel the clarity of what you are trying to protect, equity in the llc or personal assets and other business interests, is not always clear.  Most who commented on this topic own their property outright.  So the question pertains to protecting the $100k-$200k of equity in the entity.

I'm in a strong position and will be having many properties fully paid off soon. I will own multiple properties with a mortgage and multiple properties free and clear. I am separating them into S-Corps and want to have the peace of mind that if a catastrophe happens with one property it cannot affect my properties owned by a different S-Corp.

Thanks for the input I greatly appreciate it!

You're right. It sounds like a terrible deal, lol. Walk away and don't look back. :)

Originally posted by @James Wise:

One important thing to think about: When you are doing it yourself to save a few bucks are you taking time away from your other earning potential?

Good points. I would also add to this that I believe it is important to know if you have the skill level to do some of the work. I looked at a Single Family property two weeks ago where I was getting close to making an offer and turn it into a rental. The owner was a DIY guy and he installed his own laminate flooring. Needless to say the flooring was coming off in some areas and it looked wonky. Now it needed to be completely removed and redone. I think there is a lot of value in sweat equity primarily if you're a 9-5'er and aren't self employed / run a biz I just want to stress the importance of having things done right the first time. You don't want a costly mistake on your hands! So if you know how to do it, then by all means do it yourself is a wonderful idea. If you're hoping to learn as you go, I may suggest hiring someone and watching / learning / offering free help for the knowledge. I'm sure your flooring guy will be thrilled to have some free labor. lol :)

Definitely need to get as many people there as possible! I own properties in the Austin area and wanted to transition them into STR's!

Trying to understand... and maybe this was answered somewhere in the middle of the thread as I only read the first page... But doesn't having different Corporations / LLC's / Companies that own your different rental properties shield you from a lawsuit taking all of your assets? We have three rentals so far and we have two S-Corps and we are putting 3 houses in each S-Corp. So far one has 2 and the other has 1. Once we are buying house number 7 we will start a third S-Corp for the purpose of protecting myself and separating my assets.

Originally posted by @Gary Ennis:

@Gonz Trevino The process is a bit of a hassle, like all other dealings with the city bureaucracy. But if you have the necessary forms/documentation filled out and pay the required fee, the process generally takes about 2-3 weeks. 

That said, this could all change very soon, as the Austin City Council is considering passing legislation that would effectively ban Type 2 STRs in Austin. This is despite the fact that they passed in 2012 what many around the country consider to be model legislation on STRs, which allows the city plenty of leeway to enforce code violations and address problem properties.

I will start another thread with details on what could possibly happen during the counsel's meeting on October 15, during which they will consider this legislation. 

I heard the City Council meeting was this week. I must have been off. I would love to have a conversation Gary I have a few strategies that I think are very good for implementing STR's in Austin. Hopefully the city does not ban them. I heard they only give a limited amount of licenses per zip code and its based on how many they have in that area already. I would love to connect over the phone with you. :)

Originally posted by @Gary Ennis:

@Jared Crouch you would pay the same 15% in hotel occupancy taxes (9% City of Austin plus 6% State of Texas). But the STR licensing with the City of Austin would be different - you would need a Type 1 license, which is for owner occupied single family, duplex or multifamily.

FYI, Type 2 is for non-owner occupied single family or duplex, and Type 3 is for non-owner occupied multifamily. 

Thanks for the info Gary. Did you have trouble getting the license for renting your properties as Short Term Rentals in Austin? I have a property in Austin I've been tossing around thinking of converting it into a Short Term Rental. Would love to know!