All Forum Posts by: Josh H.

Hello,

Does anyone have a general document that you can share that you have your contractors sign before starting work, that protects (idemnifies) you from damages they cause to your property or neighbors' property, and has other terms that protect you, such as saying change orders must be in writing, and other things that are beneficial?

We have a few flips going on now and want to make sure to cover our bases. A real estate attorney that I spoke with today wants 3K-5K to create a document like this, so I am seeing if there is a free document that we can get since we are still a growing company. Any document that would protect us would be very helpful.

Thanks,

Josh

I just want to say thank you to everyone that replied. We decided to set up our LLC ourselves, instead of paying a company thousands of dollars to do it. The lady that we spoke to seemed like a scammer and it would be a colossal waste of money to use them. Thanks again for the advice.

@Bill B.

Thank you for your response (as well as everyone else that responded). Your advice really resonates with me because we actually have a call scheduled soon with a person that works for a law firm that sets up LLC's and corporations. From preliminary talks, it seems like she just wants to set up a couple of LLC's or corporations for us to overcomplicate things and charge us $8,000!

Would your advice also hold true for a partnership, between two business partners that are not married? 

We are trying to figure out how to make it so that both he and I minimize taxes as much as possible and take advantage of tax writeoffs. Although he will not be materially participating in the management of the STR, since he is the financial backer for a large part of it (he provided the $200K downpayment, my wife and I are carrying the 700K DSCR loan) we still need to make it so that he gets tax writeoffs. From what I understand, a partnership would not work as a disregarded entity.

Thanks,
Josh

Hello,

I have heard of leasing your short term rental to another LLC that you own in order to minimize tax liability from a video that I watched, but there was no information given on why this is advantageous or the mechanics of it. Can someone please let me know a simple explanation of this and how it helps lower tax liability?

@Luke Carl, I am very interested in working with The Short Term Shop, over the past couple of weeks, my wife and I have listened to both of her bigger pockets podcasts while driving to several of the homes we are currently flipping. We have watched several of the other podcasts that she has been on over the years, and I listened to her book on Audible. I have been trying to get in contact with someone at the Short Term Shop over the past week but have not been able to. I would love to talk with someone there today if possible, I will DM you my phone number in case you can get me in contact with someone there today.

Thanks,

Josh

Hello,

Does anyone know of any good realtors that specialize in Short Term Rentals? We are interested in investing in short-term rentals in markets in the eastern united states.

TIA

Bump please

Thank you for this insight, Kenny. We will not be getting the EMD money back at this point, it was $1000 so that is a non-issue to us at this point. Every realtor I have talked to has been unsure because they have rarely or never seen a home with 7 foot ceilings.

This home's profit potential is a good spread for this area. We have done a few flips already, so we know how budgets need to have built in flex. We are accounting for about $10k extra already in that $80k number and have $10k+ more cash on hand if needed. But the biggest thing I was asking is: whether or not 7 foot ceilings should make us walk away from this one.

Since a picture is worth a thousand words, I thought it might make sense to share some of the house. We are putting in new carpet, laminate floors, new cabinets, appliances, fixing the dip in the kitchen floor, painting the deck, lattice, front porch, all of the walls, and powerwashing, etc.

The house will look like new everywhere you can see - but with 7 foot ceilings. Walk or no? I would love to get multiple opinions on this because we are supposed to be closing in week.

Hello, looking for some advice from some veterans. My wife and I have a cape cod home in contract in southern Maryland. Built in 1951 but has had some updates, we will be making it fully modern. 

176k purchase price, 80k in repairs/labor, appraisal just came in at $350k.

The biggest problem is that it has 7 foot ceilings.

It is in a hot area with good schools but we do not know if the house having 7 foot ceilings will be a deal breaker for buyers. Should we walk or close the deal? We are scheduled to close in a week.

Thanks,

Josh

Blair, I see you are now accepting new clients again. I watched one of your webinars recently. Can you address Michael Mies' question?