All Forum Posts by: Michele Wax

I am an Accountant.  I would say that you need to have someone that has at least a BA in Business (accounting).  I have my clients use a CPA for their taxes only because I do not want the hassle when I am juggling monthly books. I could do them but, I am only one person and I do not want the stress of doing taxes.  

I personally use Quick books, it is easy to use if you know where things should go and where they should end up.  Not knowing these things makes doing the books harder.  

There are several software programs out there that work for REI and that probably better if you are doing them yourself.

Are you doing depreciation? Do you do your own taxes?

A CPA will charge a lot of money, a bookkeeper (someone without a BA) will not be able to do or know the things you need them to know, an accountant will know what to do monthly and yearly and not be as expensive to you. 

As for having two separate accounts for business and personal it is easier for all to have it done that way.

I have a client with 4 accounts. He deposits money into all four every month from the rent checks he gets at the percentages that have so far worked for him.   One is for maintenance, one is for major repairs, one is his personal account, and one is to pay the mortgages. 

When I get his books at the end of every month I can quickly figure out everything he has done.  

I think that if you are buying more doors then you should find an Accountant. 

I would definitely  look for a equity partnership. You would agree to a % of the property and the proceeds.  Eventually you could buy out the partner.  This the best way to get your feet wet with someone.  

From all those I have worked with you would start a partnership they would want you to have some skin in the game( some of the closing costs) then you would decide who is gonna manage the property. Also you would discuss your Exit Strategy with them.  

I will say this most equity partners do not want a newbie to come to them with a deal that is a half million right away but something smaller. Then when that one is up and running you can get them to usually go with you on more expensive real estate.  

Nothing I am saying are absolutes but that is the way I have seen it work with Equity partners. Sometimes they will buy you out after x amount or you will have a balloon payment in so many years as part of the deal.  

Equity partners are hard to find but I do know a few. 

Wow this post is very heated.  I would like to say that all persons are acting in good faith that are wholesalers.  If a wholesaler takes advantage of a person whom is elderly it is a sad thing and I feel unacceptable.  The laws in America are written to give guidelines of what we as people feel are needed to be fair.  

IF you think wholesaling should be illegal in your state then get a hold of your legislature and get them to move on it.

Do not push what you think is right on others.  Either side of this should see why there is a need for the laws.  Any lawyer will tell you that if you take all the law books that are out and yes there are a million laws in different states and different cities even and you boil it down to a few words...It would be this one simple expression....Do unto others as you would have do unto you! 

Are you trying to figure out what you need to do to start out?  Need special financing? Looking for a partnership or and angel investor?  

I am a consultant and my first consultation is free. I will give you all my knowledge and help you figure out what is available for you for your particular situation.

I would say that you need to do your homework on the place where you might want to invest. Make a plan and stick to it. As far as getting into the REI business. Everyone had to start somewhere. Why are you looking out of state? Do you have someone who will manage for you?

I am very interested in what you come up with. 

I think you should find something in your area that you can move into in a house hack with 2-4 units.

But you should be able to get a loan for what you have down that should be a house about 100 k . You will need 10-20% down and then the closing costs which are usually around 10 k for taxes, insurance, and title search.

I think you need a lawyer or a tax accountant to tell you what you should do. 

What I can tell you is what you should have done so this would not happen.  I am not sure how you are gonna get out of all of this.  

Good Luck.

Your dad might be left with a lot of legal issues. If he received rent from you and did not acknowledge it on his taxes.  Also selling it to you he can give you a gift of $14,000 for each individual per year.

So, What I think is have him sell to you for what you bought it for. Then you season it for 2 years. Then when you sell for more there will be no capital gains. 

I would definitely let him sell you the house for the amount owed (No capital gains for him).  Then you can sell the house in a 1031 exchange for another property so you do not pay the Capital Gains.  Does this make sense to you?

So you are gonna loose how much?  

say the house cost 250,000-down payment 25,000...you paid it down by 70k now that is all in 45k you paid off the principal in 5 years?

I think I need to see the numbers.

What are the numbers so I can understand.  Please

You would have to be a co-borrower.  

I am not sure I understand what you are asking. 

You do not have any loans on properties right now correct?  

How is your credit? 

How much do you have to put down and closing costs?

What are your goals with this property in Vegas?