All Forum Posts by: Justin Sullivan

@David Campbell

I feel like there is different types of investing. There is investing for cashflow which is common with beginners and even intermediate investors looking to get more monthly cashflow to replace there income. But to me I feel once you’ve reached a level of financial independence you can take a risk on an appreciation investment which is exactly what you did. You look at market trends and other factors to determine that the peoperty will go up in value at least enough to cover the $50k loss over 5 years. I ageee with what you did. If you have the funds to cover the loss and it doesn’t hurt you then go for it but just keep in mind there is a chance of a loss. I am buying a personal home right now in a new market which I believe will appreciate enough to cash put in two years so I can build a custom home for my Family. It all depends on your risk level. You were willing to take the risk and it paid off for you. Great deal I would have done the same thing looking at the market trends of San Diego!! Now put that money to good use!!!

@Stephanie Ro

Most important. Just stating to find your area first!!

@Jeff S.

I would look into the tax benefit of a trust vs a will. Talk to a cpa because I’m pretty sure the tax advantages of putting a property in a trust far outweigh them just a will. If not your family has to pay the tax gain from your purchase price. The other way they aren’t taxed because they receive the property at current market value. I read it in Amanda Hahn tax strategies book. Look into it might be well worth it for your family.

Don’t quote everything I’m saying exactly do your own research because I am not a CPA.

@Kyle Debiase

Contact flood simple for the flood insurance. Keep in mind with a flood insurance policy you can’t cancel for any reason other then selling the property or the mortgages company says you don’t need it anymore(which won’t happen in AC.) so you can’t get a policy and shop around for cheaper. I am not sure about when the policy ends if you can change carriers or not but I know your stuck with that company for a year and flood insurance is expensive!!

Contact mike and bob from Atlantic insurance services. They do all my jersey insurance for all my properties and they're great people!! As for the STR I am not sure about that. I would speak with mike and an attorney for the best answer.

@Stephanie Ro

Listen you have a million different ways to go. Honestly I would pick a place you want to live first then you can work out the little details. Any city you pick will be good. I like AZ because of the weather you can do a nice indoor outdoor flow. But ultimately I think that is most IMooe rant. Pick a place then hit it hard looking for your properties.

Good luck

@Benjamin Couch

Listen man you gotta decide what type of financial relationship you and your (when wife) will have. Some couples share everything, some share nothing and some split bills. I grew up poor with parents who didn’t work together n fought over money! Not the best option in my opinion. Whatever you guys decide I suggest you decide on it together.

My wife and I share. At one point in time I paid everything so she could progress as an agent then we switched. I hit a rough patch in my business n she covered everything. She still has her money I still have mine but we also have joint funds together n accounts to match all of this.

Is she with you working towards investment or is it just you? Honestly if it were me I would get the lowest interest rate possible snd pay off debt with passive income. Or replace your personal villa with passive income and pay off debt with earned income. Once again you guys gotta decide are you working together(once married) or working alone.

Good luck but it seems like you have some time to work all this out.

@Daniel Felix

My advice to to speak with a licensed HVAC tech and have them come out and check current temperatures in each room with existing unit, as long as it is still operational. You don’t want to go to big on the unit because then it won’t work properly. For Air it was throw to much humidity and mess the entire system up. For heat you will

Be spending much more money than you actually need but I think your talking about air not heat. What you need is return vents. If it’s an older house chances are there isn’t adequate returns to properly supply the house. Speak with someone about adding another return vent especially on the third floor. I did a house with 3 floors and the upstairs was a few degrees hotter. For the seer I have never purchase more than 15 but that up to ypu. Most important thing is don’t go to big. If it has a 3 ton now I would

Maybe go up to a 3.5. From what I’ve learned from licnesed guys is one ton per 700 square feet. So your 3 ton should be plenty. Look into replacing your ducts snd running a new truck and return up to the upper floors for better air flow. Once again if you want this done correctly speak with someone who knows what they are doing and do this everyday!!

So I don’t do anything illegal that’s for sure. But I stay ahead of my client. 20% prior to start and each draw is for future work to be completed. So they lay phase 1 at start anD phase 2 at completion of phase 1 etc. 

Yes you’re 100% right about references but it will tell you a lot about a person. I once got references from someone who was 63 and all his references were from his past employer. Why not any from the other 40 years. It will help you to know more about someone. Plus it’s a pain in the *** the get reference so if someone is willing tO get them and contact them snd let them know an employer will Be calling it’s another step that someone is willing to take for your position or job. 

@Joe S.

I’ve gotten people off Facebook Craigslist indeed and just about every other site you can think of for my contracting conpany. It’s tough to find good people but if you verify properly you should be able to. A few tips

Good quality smaller handymen won’t ask for money up front. They will get you to sign an agreement or just jump in and start working without asking dor money even if they need to buy materials. So ask them what they need to start the job. Keep in mind this is usually only for handymen. For a larger or established company they will want to be ahead of you in payment. Like me for instance I won’t take a job unless my client pays me first for all materia snd subs and I give out the money as needed. I also have proof of concept and also don’t need the work if they don’t want to agree to my terms.

Speaking of needing the work. Are they desperate? Do they want to start tomorrow. Do they seem more interested in getting money and starting rather than planning properly. This may be a red flag that they don’t get much work and are desperate which isn’t very good. Be sure to ask them what they are currently working on and ask for pictures as proof. If they are a handyman then they should be getting dirty each day snd should be out working.

Ask for references but more importantly ask them about their work and see if they know what they’re talking about. Most handyman adds anyone will apply to. Maybe put needing skilled carpenter to take away some of the riff raff. But ultimately you have to trust your gut. I’d you get a bad feeling about someone just move on to someone else. The only times I had issue is when I didn’t fire as soon as somthring seemed out of placeZ I tried to

Give them mor chances to finish and do it right. If they can do it right they would have the first time: so verify that they know what they are doing. Require pictures as proof of progress as soon as something doesn’t seem or sound right fire them and move on. Trust your gut ultimately!!

@Stephanie Ro

So based off of pictures there doesn't seem to be anything wrong with either one of those properties. One is a little dated while the other seems to have been updated recently. Honestly one of my strategies is to go for properties sitting on the MLS for 90 days (+). When they sit for a while the seller is usually willing to accept a lower off which may have gotten the property sold had it been listed there from the start. Not everyone is real estate is looking for the same thing you are. Some people want turn key others want cheap others want occupied while

Most want them empty. So don’t worry that a property has been sitting for a while just run your numbers snd if it works for you then make your offer. I would def get a home inspection to make sure there isn’t any major issues. I wouldn’t worry so much about that though to prevent you from offering. That’s why contingencies are in place to protect you from that. I would worry more if a property went under contract then went back active 10 days later. That’s the inspection period time frame. If the property is Unser contract for 30 days then maybe it’s financing on the buyer side was there problem. All in all just don’t walk away because a property is sitting. It’s usually because it’s listed to high in most cases. I can’t speak for anaywhere except NJ and Arizona but I know PA Philadelphia has lower taxes and good night life. NJ taxes are kinda high but can still find hood investments but bad tenant laws. I’m

In AZ right now and it seems like a great place and also is landlord friendly.

Wish you the best!!