All Forum Posts by: Irina Belkofer

@Cameron Price I personally don’t understand why it’s confusing.

If you play cards or chess, are rules confusing to you or you just learn the rules and try to win?

Nobody feels good about paying taxes, that’s the reason why people learn the rules and avoid paying taxes LEGALLY whenever it’s possible. Maybe my background as an accountant or just because I do understand financial systems better than something not so logical - I don’t have problems with comprehending it.

As a real estate investor and business owner you have huge amount of advantages vs people working on W-2.

You deduct almost everything on your sch.C, you don’t pay social taxes on your sch.E, you can defer capital gain taxes through 1031 exchange. That’s one hell of a deal to create business which pay much less taxes than people working 40 hours per week and couldn’t deduct even driving to work....lol

I’m from Russia where income tax is 13% flar rate and people still don’t like paying it.

There is no such great system like here - all these deductions, exemptions.......I don’t even pay state income tax in my state because small businesses are exempt. What not to like?

You just have to learn the rules and then create your own tax empire to avoid unnecessary taxes. Legally.

 Nothing is fair about taxes: the country needs money to function and it gets it through taxes.

However, if you understand their intention and the system, you can play it better.

In your example, depreciation recapture exists to get back some part of the advantage you’re given because you’ve sold your property at the right time (with gain). During the time when you were using depreciation, it was expense decreasing your taxes but you never paid it. When you go to get a mortgage, the banker will add the depreciation to your income which increase your buying power. Is that fair? To people who work on W-2 and don’t have such advantages?

If you learn tax system and can navigate toward more advantageous businesses, you’ll see that you can pay less taxes on the very same amount of income.

After all, if you do pay taxes, you might get some income. It’s fair

It sure will.

Each application cost you 5 points off your credit score. The more recent applications you have within last 6 months the higher a chance you’ll get denied.

If you don’t have any credit, it’s the surest way to hurt your credit before you start it.

Before you get into any game - learn the rules. What you don’t know might and will hurt you 

Almost half of Tenants in low income houses has their shut off notices from electric and gas companies but yet still working. These are on Tenants and I don’t care.

Water I do bill to the Tenants but pay myself before the due date. Water here staying with the house - it’s a future lien, I’m not taking chances. To get debt to $2K it takes a year or more - why nobody verified that bill wasn’t paid?

Are you doing PM yourself? Why it even get that far? Do they pay rent?

I’m evicting Tenants for Rent being late much less than that. $2K for water is someone negligence - whoever does the PM for the property.

You can’t shut off anything and it’s your responsibility to pay the bill. Next time log in into the water site more often and make sure water is paid before the rent. 

 Stop applying for credit cards - you’re hurting your credit!

Every inquire takes 5 points off and stay on your history for 2 years.

Apply for secured credit card - put your $4K to good use. Don’t pay it randomly: when you get statement, pay off 2- days before the due date. Each card is different and don’t coincide with the calendar month. Don’t use what you can’t pay right away.

For FHA loan you'll need income, credit and good DTI ratio. Lear the game first - then apply.

You’ll need income $35K to buy a $100K house. You live in CA - is there such houses?

House hack would help (live in one part and Rent out other), but if you do have debts - it decrease your purchasing power.

Credit history is the key but it takes time. You’ll need 4 credit lines in good standing for 7 years. There is nothing good happens fast: everything takes learning, experience and persistence. That’s why it called history - you can ruin it overnight but not build....it will take time.

$4K it’s one months reserve - to get a mortgage, you’ll need to show bank that you have few months reserves to pay that mortgage and won’t foreclosure on it.

If I were you, I would get a solid job, preferably with license (plumber, electrician, HVAC) and Learn about credit, money, real estate all the time you’re not working.

If the listing agent has his/her own client, they might ignore your calls.

Since it's REO, most likely the listing agent is too busy to answer all the calls if offer already get accepted.

I submitted an offer recently for full price but didn’t get any notice if the offer get rejected/countered/accepted. Just by changing listings status to contingent, I’ve got it that another offer get accepted.

Listers for Fannie/Freddie, HUD have too much work on their hands.

Just email your offer and leave VM that the offer is submitted. Not much you can do about it 

Pros of having basement:

Renting/selling higher  -  More desirable

Extra space for utilities room, storage, family room

No taxes on basement space - finished basement add Sq.f to the house(below ground) but don’t add taxes.

Dry basement is huge plus

Cons:

Foundation problems - very costly if it’s leaking or bowing walls - structural damage 

We do have both: I prefer with basement. Slabs do have foundation problems but it’s cheaper to fix.

Sometimes Tenants looking for a rental with main requirement “basement”. 

Basements compensate for smaller bedrooms, for less bathrooms etc.....but no basement is a price reduction 

 This is the best kept secret.

When all the gurus try to seduce wannabe RE investors without any money, they omit the fact that there will be money but much more time. This will be more than full time job without income to rely on....besides, legal obstacles might leave you not only without money from transaction but with money spent on lawyers.

After all, wholesaling is brokering without license. It takes one good complain to the Division if RE or Board of Realtors....it costs around here $10K for the first offense ....or maybe more now 

 Is your google not working?

My "costumers" are fine, and I personally never have cash on me, we are not discussing my personal experiences here.

The statistics shows that realtors get killed every now and then - NAR is warning.

Concealed carry is for feeling safe in unsafe situations, not to show off that you're armed.

If you read whole topic, you might get why rehab, wholesaling, working in distressed areas is more dangerous than sitting on your couch and trying to sound smart

 Realtors get killed more often than cops - should they all change profession? Or just be ready?

Investors might not but landlords interacting with tenants and sometimes with the neiborhood of the tenants....it might get heated quickly.

I'm glad I never had to point a gun to anyone but I do have it in my car and my house. I had few open houses where I chose to have a gun on me. Let's say, you're holding open a farm house where you don't see a neighbor. Alone. $300K. You're a target - sitting duck.

I work mostly with investors, so we go into empty distressed houses or I do alone if I preview it for OOS client. Can I meet a squatter? Sure. Why would I go unarmed?

Pepper spray is not for me - I'm not going to get that close to anyone I feel dangerous about. 

It's not always a choice to be or not to be in a wrong place in wrong time. You have to do what you have to do. Better be prepared to do it right.

Guns are like insurance: you buy it in case you need it but you hope you won't need it ever.