All Forum Posts by: Jed Burkey

@Holly Williams

Thanks Holly! Yes, I shouldn’t have skipped over one of the main advantages-tax benefits. I’ll have a chat w my CPA about this. Great advice!

@Dave Meyer

Just took the survey. Here was my comment on the survey, in case people want to discuss on the forum as well. Thanks for looking for more ways to keep adding value to an already valuable product!

"Any data analysis tools/accurate comps etc. for neighborhoods we invest in would be super valuable, specifically for those of us without a real estate agent license that can't access the MLS/RPR etc."

@Joe Norman

Thanks Joe! The main reason I want myself/spouse to get a license is to have access to the MLS and potentially other sights that are exclusive to realtors (like RPR) and be able to get into properties for walk throughs without having to go through an agent. I'd mainly be using the MLS/RPR for comps (and searches for any deals that haven't been snatched up before they're even put on the MLS).

@Jose L Torres

Thanks for the response! Do you usually have a discussion with the buyer/seller about this or just include this document in the paper work? If you discuss, what’s a good one-two sentence explanation you’ve found that works well to explain that you’re an agent?

As I'm researching the pros/cons of getting my real estate agent license, one of the main cons that keeps coming up (other than the cost of getting and maintaining the license) is having to disclose your status as an agent in any RE transactions that I would have a financial interest in. If my wife gets her license instead of me, would I still need to disclose a "conflict of interest"? What if her name is not on the title and/or the property is held by an LLC and not directly in either of our names? Any other tax consequences related to REI I should know about for either myself getting a license or my spouse?

From what I've read/seen, a rule of thumb on a rehab can be a dangerous thing.  It can give you a false sense of security and there are so many variables in rehabs (cost of labor/materials in your area vs U.S. avg), sq footage, quality of materials, extent of rehab/potential to discover additional code violations etc as dry wall/flooring are removed, etc. etc.)  I would say your best bet is to have another 1-2 contractors and/or inspectors come in to give a quote (tell them upfront you're just getting bids, but make sure you make it worth their time-give them a few hundred dollars for the quote).  The extra fees for a couple good detailed, itemized quotes can have the potential to not only give you confidence you're paying fair market value to the contractor, but multiple bids will often give you additional tips/layout possibilities/ideas that you hadn't thought of before and the ability to compare line items between quotes to get a better feel for future projects about how much certain projects actually cost in your area... Use those as your rules of thumb for future projects.

@Chris Mason

So that is the one way banks potentially could try to do this on a large scale again... It makes sense that they're not trying to recall a lot of loans in 2019 that were made in 2014, but IF interest rates skyrocket for some reason again in 5-15 years from now, they could try to force payback/acceleration of 2019, 4% loans... Is there some logic to this? What sort of protections can we have against this happening/language in the lending documents, etc.?

Dave Ramsey has told the story of how, when he was in his 20's, he used no/low down payment loans to purchase a large number of properties.  However, once the local bank he had been working with was sold, the bank that bought them didn't like his debt/income ratio etc., and " called"or "accelerated" his loans (meaning all the principal and interest became due immediately) and he was forced to declare bankruptcy.   I'm not afraid of using leverage to create more deals-in fact, I think that's one of the best ways to grow long term wealth/financial freedom.  Most problems with no/low down payment loans are created when the investor has not analyzed the deal correctly/pays too much/underestimates costs, etc. and/or does not have enough cash in reserves for large capital expenditures.  But, something like a bank accelerating the loan seems to be one large variable that could spell financial ruin that seems to be out of your control.  I'm assuming this is very rare/probably usually only happens when the property owner is behind on payments or has violated the lending agreement in some way.  Could anyone out there share their knowledge/experience on how this can happen/how to avoid it? 

@Bruce Runn

Ok, thanks again for the help! Would you happen to know any good contractors in the area that work well with investors?

@Bruce Runn Thanks so much for that reply! Very helpful. So did the 2040 plan lift all zoning barriers for single family? e.g, ADU's are not restricted on SF lots and no restrictions to convert up to a triplex (except for the added cost of complying with IBC codes on triplex conversions)? I live in Omaha and am frustrated with zoning here, but I really like the concept of conversions/ADU's. If you're interested in funding partners, I'd love to visit with you sometime.