All Forum Posts by: Account Closed

@Jeffrey Hotz Are the franchises limited geographically? For example, will HV only sell x number of Franchises per territory or is it unlimited? 

Thank you @Ashish Acharya

Even though it is a rehab, do you believe there may be room to simply expense portions of the rehab under $2,500 through De Minimis guidelines? For example, new bathroom fixtures under $2,500, new light fixtures under $2,500, etc. If so, at what point can a subset of the rehab no longer be considered for expense and can only capitalized (i.e. I'm sure replacing studs would be capitalized)?

@Mason Carter I was going to copy/paste my clauses in this thread but there are so many that I felt the need to simply post the Lease Agreement to the BP Fileplace instead. You can review it HERE

The bottom line is, my lease agreement is designed to remove me from the process as much as possible by creating a more sense of ownership - and the responsibility that comes with it - for the Tenant. 

Disclosure: I am an MBA graduate and wrote the contract myself; however, I am not a lawyer and every municipality has its nuances so if you (or anyone) wishes to use this contract, you should consult a lawyer for review/edit first. 

Good Morning All!

I now have 3 properties under my belt - all from 2018. I am testin for my Sales Agent License tomorrow and am constantly looking for ways to invest my growing my business. I'd like some simple guidance on if the following types of expenses can be written off given my current level of activity:

1. Bigger Pockets Membership

2. Misc REI Memberships (i.e. Rentometer.com)

3. Seminar Costs including related lodging/mileage

4. Mileage to and from Rental properties (out of state)

5. Cost to obtain RE Sales Agent License

Thanks!

Good Morning Everyone!

I purchased a SFH for $50k cash on Nov 15th. I am investing up to $30k in rehab into the property. I expect it to appraise for $127,450 in 6 months when I plan on cash-out refinancing it 75% LTV. I will hold this property as a rental.

This is my first BRRRR deal and I am curious as to how I should handle the depreciation aspect of it. I would like to depreciate off the appraisal (less land of course) but no sure how - or if - that would work since the property will simply be refinanced and not actually trade.

What are your thoughts?

@Alex Tobias HEREis a good place to get you started. CBRE does a great job surveying localities for their cap rates and even breaks MFH caps down into class (i.e. 'A' class property, 'B' class, etc etc).

@Taronda Ransom

I recommend signing up on Realtor.com or Redfin.com (or both) as you can search 'Recently Sold' properties within a specified time frame (i.e. past 6 months) for free. From there, it's a matter of analyzing those properties closest to the property you are looking at - both geographically and in terms of specifications - to properties further out from the subject property. Your goal is to match apples to apples (i.e. sq footage, #BR/BAs, amenities, style, etc) as closely as possible. 

You can enlist the help of an agent, but keep in mind that most agents are reluctant to help you out of the kindness of their heart, rather, they will likely expect to represent you in a purchase so as to not waste their time. If you are looking at approaching possible sellers directly (i.e. door knocking or yellow letters), then don't bother with agents. 

While it is a good idea to ask the BP Community on their thoughts/experiences surrounding such a situation it goes without saying - TALK TO A LAWYER!!!

@Mindy Jensen @Brandon Turner This was a great episode. The best part for me was how Brad talks about learning to do the things that others don't care to do - in his case, Sales and Marketing as well as Communication and Public Speaking. He had mentioned that he listed to certain podcasts to teach him these skills. I KNOW I need to focus on improving these skills in my life and I'd love to learn what specific podcasts he could recommend. Unfortunately I cannot reach out to him on his site (there is no 'Contact Me' option). Anyway to put me in touch?

I am not a lawyer, but my understanding is that anything classified as SFR in Texas includes Duplexes, Triplexes and Quadplexes. I've seen many duplex conversions and doubt they had to go in front of the zoning board to request the conversion. However, the permitting process should still be followed and, as always, consult a lawyer.