All Forum Posts by: Kyle Miller

Hello everyone, I am fairly new to the real estate world. I have been in the words of Grant Cardone "obsessed" with real estate and my goal is to own 1000 doors. My goals are to buy n hold 4 units and up for cashflow for the long term and pass them on to my kids and their kids. I have been reading books, listening to podcasts, watching YouTube, attending local RE meetups, and networking with other investors. I know real estate is 95%,if not 100% about the numbers. For the buy n hold investors, how do you analyze and evaluate deals? What numbers or specific indications do you look at? Thanks in advance! 

It's July 3rd 2015 and this thread seems a couple of years old, but today, I am on a webinar by Zack and came here to see what Bigger Pockets had to say about him.

But, now I have something to contribute! His "secret" software for getting the leads from all the websites is a system I bought from a VA on Fiverr for $5.00!

Plus, I've heard that web posts are where all the competition looks for deals and so I don't see how this guy has any secrets.

Hi, Kenny:

Although I have not gone thru this before, I'll try to comment on this because I'm a tax professional (Enrolled Agent) and understand the tax code just a little bit better.  For installment sale, the responsibility of withholding tilts toward the buyer side because the buyer is the one who "controls" the payment, not the seller.  Codes have been written that the buyer is the party who is obligated to carry out this action of tax withholding.  There will be penalties and interest if the buyer fails to follow.  Even if the seller could "elect-out" and file for entire gain in his/her tax return and then request FTB to relieve the buyer from such duty of withholding, it is not practical to the buyer, in any way.  So, for sure it's an installment sale, tell your accountant or tax pro that you need to file form 593, form 593-V and form 596-I on first payment, and try to obtain help from him/her.  As for the seller, unless both of you can come to agreement, he/she usually does not have much choice but  follow suit.

Suppose after the first or second installment payment, the seller "elect-out" and went ahead report the entire gain, which is less possible since the tax involved here would be higher, but then you'll know you did what you're supposed to in tax compliance and owes nothing to the State.

On the federal level, the buyer has a lot more pencil work to do.  Buyer must report the entire transaction in the year of sale if it was for loss.  He needs to consult his tax advisor.

@Kyle Miller

I know this post is old, but always good to see another investor in Reno. 

Let me know if you still need a recommendation! I know quite a few. 

@Adam Ng

My pleasure.  Best luck with your search, make sure you understand the rent control issue in this area, it can make or break the deal if you have existing under-market renters in the property. 

@Victor Argueta

Thank you for the vote of confidence. I definitely agree with you on the "best tenant", never had any issue with any of the tenants and any vacancies were filled out immediately.  I was doing the same thing of offering the tenant some cash to allow me to show the units to the prospective tenant.  I will call LADWPs now on the water meters - great advice !!! What other areas are you investing in?

@Lee L.

We do not buy earthquake insurance on our rental. Please look up and search for earthquake insurance in the forum.  There are a lot of discussion on whether it make sense to buy it or not.  We decided not go buy the earthquake insurance on our rentals due to the exclusions, deductible and coverage limit.

I would like to hear how others are investing in San Gabriel Valley. Prices have certainly jumped although still cheap compared to the Westside. I personally invest in buy-and-hold properties but deals are much harder to come by.