All Forum Posts by: Shawn Regnier

Quote from @Chris Seveney:

Quote from @Shawn Regnier:

A friend asked for some advice on his mother's situation with mold issues under her home in New Hampshire. She lives in an over-55 Resident Owned Community. Homes here are manufactured and have an HOA fee.

A handyman discovered quite a bit of mold under the house due to an issue that the developer created when installing the hillside drainage system from the streets. Her house is at the bottom of the hill. She complained last year of the splashing water from the setup that was happening to her house. The developer dug a trench, but it continued to happen.

She just found out that this happened to a nearby neighbor two years ago, and the developer dug new lines and gave the owners $1,000 to appease all of the mold under the homeowner's house. The homeowner then fixed it themselves, apparently.

She has a meeting with the HOA next week, so her son asked for my advice. He has a feeling they are going to put a bandaid over the situation, and I don't disagree.

What steps should she take to protect herself? She would rather not hire a lawyer until she finds out what they say, and doesn't want to call her insurance company yet because she fears they will not do anything since the issues haven't been fixed.

Any advice would be appreciated.

Simple. go to the HOA meeting and say you have 30 days to submit a plan from civil engineer that alleviates the issue. If not I will be forced to get an attorney involved because you are causing mold damage and a health concern to my property.

Unfortunately nothing gets done, especially with a HOA until you threaten them. They are not your friends, and even if they are, business is business.

 Thanks @Chris Seveney that was pretty much my first suggestion to my friend. Your 30 day/civil engineer will be added to what we have written for her.

A friend asked for some advice on his mother's situation with mold issues under her home in New Hampshire. She lives in an over-55 Resident Owned Community. Homes here are manufactured and have an HOA fee.

A handyman discovered quite a bit of mold under the house due to an issue that the developer created when installing the hillside drainage system from the streets. Her house is at the bottom of the hill. She complained last year of the splashing water from the setup that was happening to her house. The developer dug a trench, but it continued to happen.

She just found out that this happened to a nearby neighbor two years ago, and the developer dug new lines and gave the owners $1,000 to appease all of the mold under the homeowner's house. The homeowner then fixed it themselves, apparently.

She has a meeting with the HOA next week, so her son asked for my advice. He has a feeling they are going to put a bandaid over the situation, and I don't disagree.

What steps should she take to protect herself? She would rather not hire a lawyer until she finds out what they say, and doesn't want to call her insurance company yet because she fears they will not do anything since the issues haven't been fixed.

Any advice would be appreciated.

Like many people I'm sure that listened to BP Podcast #527, when Pace Morby made his BP Podcast intro, I soaked up everything he had to say, and re-listened to the entire episode. I've been watching countless Youtube videos he puts out, joined his FB group, and have been watching his A&E tv series. 

I flip houses in Los Angeles, and he said on the podcast that his show gives you all the numbers for their deals (unlike other shows he said), so I figured I'd tune in. Spoiler alert, they don't really give you that much number-wise on the show: purchase price, renovation cost, sold price, subtract for profit. That's it. Anyone who has done a flip knows there is way more to it than that. I still enjoy watching the show for renovation ideas, and to see how they handle unforeseen dilemmas that pop up.

Judging by his Youtube subscriber and view lists over the last 30 days, between his podcast appearances and the new show, he has been absolutely exploding on Youtube recently. When watching his Youtube videos, you definitely get pumped up, and I appreciate the videos. 

The FB group has useful tidbits also, but so do our BP forums, and many other forums/groups. There is a lot of steering towards signing up for mentorship, and connecting with his students. That's part of the game, I get it. I went to BP Con New Orleans this year, and loved it, but half of the seminars I attended were also about self promotion from the speakers. I get that it's a great way to build your business, so I don't fault anyone for trying to get ahead.

I just started reading countless reviews for Pace's mentorship, and while there are a handful of legitimate BP members who respond, that post from DEC 2020 that had 87 responses and many VERY similar writing styles: lots of strategic CAPS, ...'s, grammatically clean writing, the overly-used constant "over delivers" in every comment.

Those were from many one and done, brand new accounts. It was a turnoff for me seeing that, and from a guy that uses virtual assistants the way he does (they respond to most if not all of his user comments on Youtube), it doesn't take much imagination to figure out what that was about. 

@Joe Splitrock probably summed it up best back in April, before he locked the thread:

Joe Splitrock (Moderator) - Rental Property Investor from Sioux Falls, SD

replied 9 months ago

Every time Pace Moby threads pop up on BP, half the testimonials are new accounts with a first post say how great the program is. How is it believable that that several people randomly open accounts on the same day and decide to make their first post about Pace Moby, with no external prompting? The posts are overly enthusiastic and ridiculously over the top.

This thread is locked by moderator.

-------------

I'll keep soaking up the content he produces, and also look into other sources to learn more about subto and how to set up seller financing that have been recommended by users on these forums. He's obviously legit, it's just the bombardment of marketing responses that turned me off.

Originally posted by @Holly Chan:

To answer your question, I'm going to assume that the work requiring your new vehicle is done within your individual corporation, and that the corporation would be purchasing the vehicle regardless of the flip, i.e. there is a business purpose for the purchase which will continue when the flip is completed.

To make this work, the corporation should purchase/lease the vehicle in the same year the flip is sold. The full lease value becomes an asset which is eligible for 100% bonus depreciation (assuming the vehicle is used 100% for business purposes). There are limits to bonus depreciation on passenger vehicles which a 6,000+ lb vehicle is not subject to. It's an eligible asset for Section 179 expense, as well, but Section 179 expense has other limitations including property cost and taxable income limitations. You'll likely get a better result taking bonus depreciation. By recognizing the full value of the lease, you do not then expense the lease payments as they're made. Instead, you book the asset and a liability and then reduce the liability each time a lease payment is made.

The gain on the flip will come through as either short-term capital gain or ordinary income, depending on how regular, continuous, etc the flipping activity is. If it's ordinary, the depreciation on the vehicle will directly offset the income. If short-term capital gain, the rates are the same but it will be reported differently.

There are other considerations in your overall situation, including SE taxes, classification of the income streams, passive vs. non-passive and use of a corporation to name a few. Definitely engage a CPA to make sure you're getting the best tax result.

@Holly Chan thank for the extremely thorough explanation. I won't pretend to fully know what action to take, besides the obvious, hire an real estate CPA! At least I now know I have viable options.

To answer your question: Yes I will be using this vehicle primarily for real estate endeavors (real estate agent and investor/flipper), but it closer to 90%, not 100%. I'm not sure if I will be buying the vehicle outright or leasing it. I'm generally a fan of leasing, but if it's my best interest to buy outright, then I will. I had also read that the vehicle doesn't even need to be brand new, just brand new to me, which may be a better option if buying outright.

I'm a realtor who is currently finishing my first fix and flip with a business partner through our LLC that we formed from each of our individual Corporations. I've been pouring through articles on this topic, but am not getting my questions fully answered (they probably are answered, but I'm not fully getting it).

Bought a house to flip in 2021, and will (hopefully) sell it in 2021. Projected gross profit after renovation and holding cost expenses is $100k ($50k will flow into each of our individual Corps).

I need a new work vehicle, because lease ended a few months ago, and heard about a loophole to deduct certain vehicles weighing 6,000-14,000 GWVR (I won't list them all here).

Will my vehicle purchase reduce the taxes on the $50k, and I'd have to pay taxes on what's left, or do you not get to be cute with it, and taxes come right our of the house flip beforehand? Maybe I'm confusing this with bonus depreciation.

I also thought I read that I would need to purchase the vehicle before the flip was sold (recorded).

One other question, I generally lease and write off my lease. I also read that you can also write off the entire amount of a lease and it will realize the entire purchase? 

Would I need to use Bonus Depreciation to make this all work?

I know most answers will be "ask your CPA or hire one." I was hoping to vet some CPA's at BPCON21, but didn't bump into any. I'll be reaching out to some shortly, but figured I'd ask my questions here anyway.

Thanks in advance.

Listening to (2) recent BP podcasts (#496 + 497) sounds right up your alley. Brian Murray was a special guest who just wrote the Multifamily Millionaire Volume I and II with Brandon Turner.

The podcasts addressed a lot of what you are asking here, so maybe give them a listen, and do what I just did today; order the two books from the BP Bookstore!

Originally posted by @John Underwood:

This same question has been asked many times on here already.

 The same answer has been given many times on here already.

Originally posted by @Katrina Hanson:

I am brand new to BiggerPockets Pro and I am try to acquire my first investment.  Would I be over my head if I attended BPCON? I'm thinking it would be very beneficial but I wanted to get a second option 

I wouldn’t worry about your experience level @Katrina Hanson. I’m sure many of us will be walking around with impostor syndrome at the convention. 😎

Originally posted by @Scott Winnie:

Hey @Shawn Regnier,

I just booked my flights, hotel and tickets to the conference as well. We will definitely be running into each other as I am signed up for the rental property panel, short term rental property panel, 5 strategies for growing your real estate business, and profiting with BRRRR strategies. I will see you there! And New Orleans is one of my favorite cities! Been here numerous times for Mardi Gras, Jazz Fest, and a couple Final Fours! You will love it!

Scott Winnie

Hey @Scott Winnie look forward to meeting you. Should be a blast. 

Just booked. New Orleans was always on my top 3 U.S. travel destination list for decades, but it always got beat out due to one reason or another.

Looking forward to the networking and wide-eyed inspiration from the speakers.

Coming in from Los Angeles (8+ year resident), but will always be a New Englander (N.H.). 

So many interesting seminars; it was hard to pick just one per group. Really bummed I have to miss out on most of them.

It's not even fair imo that @David Greene and @J Scott have seminars. No one else in their groups even had a chance once I saw their names there! 

Signed up for:

Rental Property Panel

By Jesse Fragale Real Estate Broker & Investor, Chad Carson Wrote A Best-Selling Book "Retire Early With Real Estate", Brie Schmidt Managing Broker Of Second City Real Estate, J Scott Author Of Four BiggerPockets Books, Partner At Bar Down Investments, Darren Sager Real Estate Investor and Realtor

Short Term Rental Property Panel

By Sara Robinson Real Estate Investor & Youtuber, Zeona McIntyre Real Estate Investor, Airbnb Host , Avery Carl CEO & Founder Of The Short Term Shop, Tony Robinson Host of the BiggerPockets Rookie Podcast

Tax Strategies for Savvy Real Estate Investors

By Matt MacFarland CPA & Co-Author Of Tax Strategies Series, Amanda Han Keystone CPA Specializes In Creating Tax-Saving Strategies

5 Strategies for Growing Your Real Estate Business (Or Any Business)

By J Scott Author Of Four BiggerPockets Books, Partner At Bar Down Investments

Store Up Profits in Self-Storage

By Paul Moore BiggerPockets Contributor & Finalist For Michigan Entrepreneur Of The Year

Profiting with BRRRR Strategies

By David Greene Co-host of The BiggerPockets Real Estate Podcast