All Forum Posts by: Michael Pearse

@Sean Barber Normally the general partners will file the tax return in the state the property is located. They will provide you with the K-1. A loss is a perk of real estate, always capture that as you can carry a passive loss indefinitely. Best of luck!

 @Ruby Burton To transfer a property from a personal loan to an LLC is pretty simple. You can contact a title company to help with this, or even an attorney. The title company most likely will be a cheaper option. Make sure to keep your bank in the loop if you have a lien, let them know your plan on transferring the title. That way they are aware and don't attempt to activate a due on sale clause. Once you have the new documents signed and in hand, just have to turn them into the local county for records. That's it!

@Patricia Steiner Thanks for chiming in on this. You are exactly correct. 

@Bill Plymouth I agree with what Patricia has stated, consider the whole purchase price when calculating cap rate.

Cheers!

@Bill Plymouth The 1% analysis is a rule of thumb. This is a quick way to analyze investment deals. Of course there are other metrics such as cash on cash, cap rate, etc. I would recommend figuring out which formulas matter to you on what you would call a good deal. 

Best of luck!

@Derrick McCrary Here is a previous thread that provides some great information on this topic: https://www.biggerpockets.com/forums/67/topics/629...

Cheers!

@Kyle Loganadan I sense the desire to achieve results, and that is great. Consider reviewing any pinch points in your business. What are some things that are always a challenge or take up too much time when really a task should be simple? Perhaps create an excel file with all the contacts you want to reach out to when the new year starts. You can draft emails early and have them ready to go by next week. If you are mailing out letters, have them signed and off for delivery. 

If you don't want to initiate real estate conversations with people during the holidays, consider just reaching out and saying happy holidays. Boosting relationships in the business will go a long ways. Even if you may not see a benefit now, in the future you will certainly appreciate it when the right time comes along.

Best of luck! 

@Evan McCourt I would recommend being persistent with finding a lender that will work with you. Often times a local bank will be more willing to work with real estate investors and write loans into your LLC.

Something to keep in mind with potential profit from selling versus keeping a property as a rental - A rule of thumb I follow is if I can get 7-10 years worth of cash flow when selling a property, I will likely sell. Simply because you can take those additional funds and do more deals now, rather than waiting for reserves to build back up. That way I could have 2+ houses that will cash flow, rather than just the 1. 

Best of luck!

@David Collado I understand the situation you are in, as you have 2 different great opportunities ahead of you. I would recommend continuing to build the relationships you have with the local investors. You have been working hard to be a part of the team, and now that you are getting traction you will open up many doors for increased revenue. 

If you went with the rail road position, you will eventually become settled in the position and begin to wonder what life would have been like if you followed your goals within the real estate world. 

Don't give up on the significant efforts you have spent time on. 

Best of luck!

@Lewis Roberts, Jr You don't need formal education to be successful. It all depends on your motivation to learn, networking with others, and taking action. Real estate is not research and development. So I would advise against spending more time in school, unless you believe that it is necessary for you to "be ready". Otherwise just get involved and learn as you go. 

Best of luck! 

@Adam Hollandsworth The great thing about real estate is that there are no rules on how or when to get started, all it takes is motivation and coordination with your team (bank, realtor, etc) to close on a deal. Having <10K will limit your options on how much real estate you can afford, though that same rule applies if someone has $100K saved up (still challenging to own a multi-million dollar complex on your own). With that said, you can always look into partnering with a local investor and provide value to them through loaning out 10K and helping search for deals. 

Best of luck!