All Forum Posts by: Joseph Niedermeyer

Looking for a investor friendly realtor in Eastern North Carolina. I’m centered in Jacksonville but Wilmington or surrounding areas is good too. I have a couple properties I’m interested in and wanting to build a relationship with someone who understands investor thinking. Thanks

@Jason Bott thank you for your help. That makes a lot of sense. I guess my mind goes to how each are structured, how each are financed and as you explained, how each are insured. I've seen stories where portfolio lenders prefer to lend on groups of properties valued at $500k-$1mil instead of $80k individual loans. And banks tend to not loan on flips, that's more of a hard money/creative financing situation. Also, I don't see my long term hold LLC having any employees at all whereas my flip LLC I might hire a project manager to help run the projects as I grow that business. And my rehab LLC could potentially have multiple employees depending on its size and scope. We are ready to move forward and make things legal so I'm just trying to cross my T's and dot my I's so we don't get in trouble next year. Thanks again

@Jon Reed

Thank you for your input. Let’s assume I do 6 fix n flips a year. If I keep one and sell the others, would your advice be the same?

And yes, it does need to be a legit business with an LLC. What started out as me helping a friend build a deck has slowly evolved into more and more stuff. I wasn't planning to start a business but here we are. I've got a good full time W2 job but it's nice having a side business. And I'm hoping real estate is our retirement one day.

Business number one: I do some handyman work as a cash side business. I'm considering turning that into a proper business within an LLC allowing it to grow into something bigger and more self sustaining. Along with doing work for others, I'd like to be able to do some fix n flips within this LLC using company resources to buy, renovate and flip the property... does this make sense?

Business number two: for longer term buy u hold properties, we are setting up a second LLC for this purpose. It's insured differently, taxed differently, managed differently. So it makes sense to have a second LLC... does this make sense?

So, if we are on the right track with the above two separate businesses, my last question is... can our buy n hold LLC purchase the fix n flip properties from our renovation LLC? Or am I missing something along this thinking?

Thanks in advance

@George W.

I’m not interested in starting a handyman business to work for others, just stating that I already have tools and equipment from doing this kind of work. If I’m going to manage my own properties and do fix/flips, does it make sense to set up a separate company to handle the owning and replacing and depreciation of tools and equipment?

For those of you that work real estate in one geographical location and focus on certain communities, do you keep records on houses that you’ve looked at, run the numbers and passed on? I guess I’m thinking that over the long term you will likely see a house/property pop up for sale more than once. If you see that you’ve run the numbers before, would you take the time to see what the new numbers look like? Or if you pass a house once, you don’t look at it again?

@Chris Coleman

Thank you. Out of curiosity, would that take into account the value of the improvements on the farm. Barn, fencing, sheds, arena, out buildings, etc. could easily cost $200,000 to build. I know land is t deprecated but surely structures can be.

We are looking at 24 acres of land to buy for our horse farm. We’ve always had horses and have leased land from property owners to run our farm business. This will be the first time we would own the land. I’m wondering if it’s best to treat the land as an investment property and lease it back to ourselves and our farm business. I’ve heard that some doctors or other professionals will privately own their real estate and lease it to their professional business. Is this a logical thing to do when you are investing in real estate and have a separate business entity that would utilize the real estate?

Just to expand on this a little, I do a little side work now, for cash. I build decks, replace a random door, fix a window, mow a few properties... that kind of maintenance stuff. I own several nice mowers and a ridiculous quantity of tools. I also keep a a fairly ridiculous amount of materials on hand for future projects and leftovers from old projects. Would all of this be best managed and accounted for within a maintenance company that can bill my investment property for the work done to improve or maintain the property? Or is there a better way to do the accounting for this?

For those that do fix and flips or do maintenance on your own properties, do you set up a separate “maintenance company” for the purpose of owning and replacing tools and equipment?