All Forum Posts by: Jered Sturm

@Daniel Dietz congreats on the potential deal!!

 If you are buying these properties to hold as rental property, I'd first ask why would you hold them in a retirement account? 

Often buying from a retirement account makes the process far more difficult, and removes the ability to use leverage as well as you could out of the retirement account. 

Very often in RE the depreciation of the property will wash out most if not all taxable gains on the property. If this is the case for your potential portfolio why would it need to be in a retirement account? If depreciation can wash out cash flow there is no taxable gain to shelter in a retirement account all it does is keep the money out of your control longer and make more hoops to jump through. 

@Anthony Metcalf Welcome to the site. It is the place to be to learn and share.  

Many investors are accidental like yourself. As you prepare to add more properties keep in mind you are venturing into a business. Try to run it like a business up front and it will make your life easier in the long run. Put systems and procedures in place where you can. 

I personally like MF but I also started in single family before I made the jump. 

Best of luck on your new venture!

We have run into this before. I have no issue with the profession someone chooses as long as it is legal. Ultimately we did not rent to the exotic dancers who have applied because they could not verify their income. They could verify their employment but not their income. 

Becuase many dancers are paid as 1099 contractors it would require them to claim their income on their tax return to be verified income. All dancers who applied at our properties claimed to make 5-6K a month, and their boss even confirmed this. Unfortunately, when it came to their tax return they claimed they made nothing... Becuase of this I couldn't move forward. 

I hope this helps!

Welcome to the site @Breean Reyes .  BP is the place to be to learn and share. I found the site years ago from the podcast as well. Fast forward a couple years and I was actually fortunate enough to be a guest on the podcast!

I think you have chosen a great strategy in MF buy and hold. 

Best of luck on your venture into RE. 

Let me know if I can ever be of help. 

Hey @David Tracht Welcome to BP. It really is the best place to learn and share. I recently moved to the Atlanta area to expand our business. Although our focus on multifamily we have done quite a bit of single family as well. 

Today my partner sent me some great market info on ATL. It's really worth the read! Check it out here.

ATL Market Report

I'm new to the area and really enjoy meeting other investors. If you ever want to meet up shoot me an email of personal message on here. 

Keep up the great work!!

@Daniel Brooks Welcome to the site. It really is the place to be to learn and grow as an investor. 

I'm just down the street from you in Kennesaw Ga and also invest in Multifamily. I know this is a great market to be in for apartments, so I think you're making a good choice on strategy. 

My partner who has a degree in real estate economics just sent me this(link below) on the multifamily industry. It goes into a lot of detail of why we like multifamily and why Atlanta is such a strong market to be in for that specific strategy. 

Multifamily Report

It's well worth the read. 

Best of luck on your journey. Feel free to reach out if I can be of help. 

Yes. As long as your referring to property taxes and not income taxes. 

NOI= EGI - OE

EGI (Effective Gross Income)-The amount of income produced by a piece of property, plus miscellaneous income, less vacancy costs and collection losses. In simple terms it all the dollars you actually collect. 

OE (operating expenses)-    All the costs it takes to run the property that are not specific to an indivual owner.

To your question, no mater who owns it they will have to pay property tax and therefore it is a operating expense. A mortgage payment depends on the owner. One owner may pay cash and not have a mortgage another may get a 3% interest rate and another may take a 10%. because the mortgage payment expense varies depending upon the specific owner it is not a operating expense and therefore does not effect NOI. 

@Justin Cabral Here is a recent blog I wrote that aligns/answers your questions very well. I hope you find helpful. 

https://www.biggerpockets.com/renewsblog/how-the-wealthy-invest/

@Shekar Kollu  Welcome to the site. ATL is a great place to be looking at Multis. Our company is based in Ohio but recently expanded into the ATL markets for because of the amazing demographic shifts into the area for multifamily housing. 

Happy to help if I can!

Jered

@Kevin Stearns We recently expanded our company into the Atlanta markets. It's hard learning new markets but I think well worth it. I'm now living just outside Atlanta. I should be in town those days I'd be happy to swap stories. Feel free to reach out to me on here or by my email below.