All Forum Posts by: Patrick Mahoney

Wow! I honestly do not know what to say other than how amazing Subto and the community is. It has single handedly been the most inspirational, educational, eye opening and informative content/experience that I have had in my life. The amount of content, support, time, energy, information that Pace and his team provides is invaluable. In my opinion, you honestly can’t put a dollar value to what Subto provides to you as long as you act on it. Cannot thank him and the Subto family enough!

Hey Ali! Glad to see you joining the world of real estate investing! You made the biggest step and that’s reaching out to connect with others. DM me and I can help answer questions and get you on the right path to find some deals! 

Hey Malik! This is a common roadblock for new investors who join the wholesale world! The best way to do it is to joint venture with someone! This would be like if you find the deal (aka the property) and talk with the seller to negotiate a price and get a verbal agreement, then you work with someone with more experience to help you close the deal. You would then split the assignment fee. What you get in return is a little bit of money and a whole lot of experience! By joint venturing with someone with experience they would show you how to write to contract, how to open escrow, how to find a buyer, etc.!! Reach out and I can give you some more insight and answer questions!!

Hi Mark, Great questions!!

For the first question, yes you can definitely get photos and a walkthrough video from the seller to show the buyer. Or take them yourself! Another option is to hire a third party home inspection group that does this for you and takes the walk through videos and photos as well as documents any issues the inspector sees and sometimes provide quotes on what they think the repairs are. Thirdly, if the buyer is local, you can always meet them and have them check it out or like you mentioned have them go on their own! Typically, once you get established, a lot of big time buyers do not physically check out the properties anyways, it’s all done with photos and inspection reports.

For the second question, just make sure you have a really good purchase contract and a really good assignment contract! This can help with buyers trying to bypass you.

If you need help in this area let me know, my team and I do micro-lending aka transactional lending where we help wholesalers who do not have the funds for the earnest money deposits. This helps them take on more deals without tying up their own funds! We can help you with getting a good contract in place! 

Hi Latoya! Great post with lots of great replies! Another way to do a deal like this is to work with a micro lender aka transactional lender. My team and I specialize in funding EMDs for the wholesaler for a small fee at closing. That way if you do not have the funds or your capital is tied up in another deal or even if you do not want the risk of using your own money for the deal. This can help you scale your wholesaling business faster allowing you to do more deals without using any of your own money down! Reach out anytime if you would like some more information or run into a situation where this may be helpful! And great work!

Hello all, I am a licensed professional engineer in CA with 7 years experience in various types of construction and have been tossing around the idea of starting a cost seg consulting company. I am looking for other possible engineers and CPAs who have experience or knowledge in Cost segregation that might be interested in working together. 

Hi Nathan,

That is correct. The time you listed the property is deemed the date your asset has been “placed in service”. From that point the IRS allows you to depreciate the property and claim expenses related to your rental business. Tommy, however, is correct. Capital improvements need to be depreciated over a time period determined by the type of improvement (i.e. building/structural improvements, land improvements, personal property, etc). Some of these improvements depreciate over a 5, 7, 15 or 27.5 year time period for residential buildings. Although this is the case, in 2023, you are allowed to bonus depreciate 80% of any depreciable items in the first year they were placed into service as long as the depreciation time period is 20 years or less for that item/improvement. You should contact a CPA or a Cost Segregation Engineer to consult with about maximizing your ability to recover the cost from improvements made in the year you placed the property in service. Hope this helps. 

Also, I am new to investing in Sonoma County area and would love to meet up with other investors in the area to chat about ideas and get more experience and education and maybe meet potential partners! 

@Christian Espana, are these meetups still on zoom or in person now?

Hello,

I recently found a home in California that has two Deeds of Trust on it, the first being a loan against the house and the second being a line of credit. The Trustee for the second (the line of credit) is foreclosing on the home and has announced the trustees sale at a public auction. My question is, if I purchase this at the auction with cash, the second is paid off (by me via purchase at the auction) but do I have the rights to the property but am liable to the first deed or does the homeowner still have the right to the property?