All Forum Posts by: Ori Skloot

@Kenneth Garrett  a good document was posted to the files section of BP under the title "property rules". Here is the link - https://assets1.biggerpockets.com/uploads/user_fil...

Hi Folks,

How much did YOU pay your CPA for tax preparation and filing 2016 taxes?

I just got my bill from my CPA for preparing my 2016 taxes - $4,200.   Feels steep to me.   I am filing in California and I bought one new property in 2016.  I have a portfolio of under 10 properties.

In their services performed, my CPA wrote: "Preparation of 2016 federal and state individual income tax returns, including organization and analysis of transactions.  Accounting for additional properties, set up of depreciation schedules and reconciliation between management company cash flow statements and cost workbook and maximizing deductions for expensing loan costs."

Am I getting ripped off?  Or is this the fair cost of having a good CPA?

Your input is much appreciated!

@Raj Pat  interested. Please contact me so I can setup an appointment ASAP 

What about a fourth option (I'm not giving advice just an idea) of splitting into two units, renting out the one with the original kitchen long-term, and doing short term rental on the second unit. Best of both worlds?

I use propertyradar to find home owner name and mortgage details. Good luck!

Hey folks,

Any recommendations for a good commercial insurance broker for multi-family properties in the East Bay Area?  

Thanks!

Ori

Geography: Richmond, Berkeley, Oakland.

@Michael P.  Yes.  I could have waited 6 months and then gotten financing based on the full appraised amount.  At $400k appraisal, if I got a 75% DTE loan I would have taken out $300k which would cover the purchase and rehab.  Why didn't I do that? 

1. I was eager to see this process work so I wanted to finance as soon as possible. 
2. I was concerned about interest rates climbing while I waited 6 months.  In the two months it took me to close the loan interest rates had gone up considerably. 
3. I like to have some cash flow to hedge against the market dipping.  I keep hearing that we are set for a correction of some sort, and I don't want to be leveraged up to my eyeballs.

@Will Barnard   You are correct.  Filed multiple liens behind my primary and my Heloc.  

Hey bay area folks,

The person I have been using as my transaction coordinator for real estate deals is retiring. I'm now looking for someone new who can help me with all the paperwork for transactions.    Anyone have any recommendations?

Thanks!

Hi Folks,

I own a number of residential properties in the East Bay Area. As I take the next step to multi-family I realize it is time to start networking and finding mutually-beneficial relationships with other commercial and multi-family investors in the Bay Area.

I am currently working on a deal that I may want to partner on. Property is located in East Oakland near 98th and Bancroft.  Still negotiating with the seller but here are the rough details:

• 7 units.  Gross rents are $10,000/month
• I'm trying to get the purchase price to $900k.  Owner wants over $1M.
• At $900k purchase price with a 30% down commercial loan, the total mortgage expense is $3850.  Operating expenses come to $3,200 (with management and modest capex).  
• So, cash flow of $2,800 per month.
• Cash on Cash ROI = 12%
• Pro Forma Cap Rate = 8%, Purchase Cap Rate = 9%

There is some potential for increasing the gross income on this property, so numbers could be even better.  I am open to either holding this property or flipping it.  I want a partner who can come to the table with the cash for the purchase. 

To give you a sense of where my background and expertise falls:

• I am actively looking for and finding deals in the East Bay Area of California. This past year I have bought a 4-plex in Richmond, a 3/2 SFD in Albany and a 3/1.5 SFD in Oakland (which I wrote about in another post). My geographic focus is: Oakland, Berkeley, Richmond, El Cerrito, El Sobrante.
• I am a licensed, independent real estate broker which has allowed me to hand-hold all the paperwork of my purchases without paying broker commissions.
• I am a licensed general contractor with lots of rehab experience on my own properties and other peoples' properties.
• I manage my own hold-properties, especially after first acquiring the property.

If I were to do a JV here are the areas that I think would complement my skills:

• Someone with experience analyzing, buying, holding, repairing, selling multi-family properties in the Bay Area.
• Someone who has immediate access to capital (not a hard-money loan, I can get that myself).  Prefer someone with $1M+ ready to invest and buy cash.
• Criteria for return vs. risk that matches my own so that we could pull the trigger when the right deal comes along.  My favorite way of purchasing is to buy cash, force appreciation, refinance to pull out cash and hold property, or flip it if that makes sense.

If you are interested please ping me with your contact info and tell me about yourself.

Thanks, Ori