All Forum Posts by: Account Closed

I got a call the other day from a cost segregation firm.  He estimates that I can use bonus depreciation to get effectively $900k of depreciation in the first year.  This is due to taking advantage of bonus depreciation in the first year.  This sounds aggressive to me given the fact that I bought my multifamily for $4.4 million.  Does this sound right?  Does anyone have experience with this?  If so, can you share how much you were able to accelerate in the first year?  Also, if you can share how much a study costed you, that would be very helpful.

Thanks,
Luke

Whether you get a lower price or the seller fixes it, I would say it doesn't really matter.  As long as the number works out.  If you are flexible with it, give the seller the option.  That it way they will feel less like they are being backed into a corner.  You might be able to leverage the flexibility and get something else back in return.  5 years is kind of short in my opinion just because you don't know what can happen in the market.

I am not sure I quite understand why you would be doing it.  If you own both properties and they are co-located, I don't know why you would need to remove the "boundary line" to increase rents to market or get a higher valuation.  You should be able to do both even though they are technically on different parcels as long as they are together.  You can list the property as one package and just let the buyers know they are on adjoining parcels.  If anything, removing the boundary line may reduce the flexibility the new owner would have (i.e. sell them off in smaller pieces).  Just my thoughts.

@Khemaro N.  Thanks!  Appreciate it.

 Sure.  It is www.youtube.com/c/LukeChung

@Kyle Ransom  Thanks.  I always struggle and go back and forth on whether to own my deals by myself or go big and get outside investors.  I love the ability to make my own decisions and not have added stress of other investors on one hand.  On the other hand, I know I can't get big without outside investors and accomplish my goals.  I decided to add a little bit of stress and go for my goals.  I decided to launch a fund.  We'll see how it goes!

@Patrick Charles  Thanks.  He is doing great!  It's Dad that I'm worried about.

@Curtis Harvey Thanks!  My son is doing great!!!  I use my own model that I designed.  I come from the world of M&A so my models are probably overkill for real estate deals.  However, I would give you a word of caution when using other deal analyzers out there.  The thing with real estate is that there are very unique factors that can make a deal work or not work.  If you use a template analyzer, it may not be flexible enough to account for these factors.  You should go through the exercise of building your own and understanding every number and how the formulas work.  That way when you talk to banks, investors, etc., you know your numbers inside and out.  If you do end up using someone's template, make sure you know how it works (i.e, you can build it back up from scratch if you needed to.)  Just my 2 cents.

@Kate Gagnon Thank you and you're very welcome.

@Justin Forehand.  Thanks!  I am humbled that it is motivating.