All Forum Posts by: Patrick Ryan

Awesome stuff here. Thanks. I spoke with WF the other day on this and they said rate is prime + 1.xx (cant remember the exact markup). But basically, the rate was 5.25%. Did you say you received your HELOC on your rental at 3.75%, or is that on your primary residence? Thanks!

Daniel, 

My wife  works for Renters Warehouse and there is a need from some of the agents. She would have to be licensed though. 

Thanks, 

Patrick Ryan 

Hi Michael,

I wouldn't worry about the season. Appraisals use comps from previous sales from the past 180 days, so you should be in the clear. I feel that most appraisers aren't subject to subjective variables such as season, as well. 

Hope this helps. 

Patrick Ryan 

Thank you for the great info here gents. This is one of the most intellectual posts on this site that I have seen so far. However, I'm having a tough time following the language. Given that depreciation and the 1031 play a very important roll in my strategy, I would like to understand it fully. Can we break it down into numbers to help get me there?

Say I Own a property, and depreciate the entire amount ($100K) over 27.5 years. I sell the property for $120k (land + property value). I don't make profit on the sales price, but depreciated $100k over the 27.5 years. I then buy a new property for $100k. What USD amount is my tax liability to the IRS at this point?

@Stephanie Hardy, They have to have a Wells Fargo account and you do too. If you both do, its super easy, and can be done right away, electronically, and free. 

After doing about 300 Tenant Placements, and with organization of documents, scanned images of rent/security deposits being so important, we needed a cloud based system tailored towards a property manager/real estate agent. 

The cool thing about dotloop is that you can find the most minute detail from a deal you might have done 3 years ago within 15 seconds. Its cloud based, so documents will always be there in case your computer dies.

The other extremely great thing about Dotloop, is you can create custom checklists to make sure that you upload all your documents to have a fully legal, executed deal. For example, after you upload your lead based paint addendum, you check it off the checklist. If you notice something not checked off, get it executed and boom - liability diminished. We couldn't dominate this business without it. 

Loius, 

Go get your license bro. You will actually GET PAID to buy the house! Long term, its the play, if you lan on buying more. Not to mention, you will probably pick up a few sales here and there from friends and family. If your in this for the long haul, get the license. 

I flipped this house in about 2.5 months. Bought for $77k, received $2k commission for being an agent and receiving the buy side commish. So $75k, + $33k rehab/agent fees. 

TOTAL COST $108k

SALES PRICE: $157,500 no seller paid closing costs. 

Heres my strategy:

#1) Buy Cash, Buy it RIGHT. Find the deals with meat on the bone! FIND THEM! If you have to grind your butt off working 80 hours a week, do it. Get to the point where you are your own boss. How many 55 year old millionaires do YOU know working for someone else? 

#2) Get you license. You will get paid to buy the houses! You can also list for free. I recommend a SMALL BROKERAGE if you don't do a ton of other sales. Bigger name brokerages charge monthly fees that rack up. Shop around when choosing your brokerage and make sure their fees structure is aligned with your business plan. 

#3) Do as much of the work as you can yourself. Overwhelming and frustrating sometimes? Absolutely! But getting out of your comfort zone is what will make your character and skill set a strong one. Be open to learning and listening to the vendors that you do have to hire, so you can DIY next time. Pick their brains!

I feel these three steps create a profitable niche. All the best, hope I helped you in some way. 

Sincerely, 

Patrick Ryan  

Jordan, 

I can get you any information you need on this. I would say that you should be prepared to put in a lot more maintenance work in comparison to a place like dakota county (apple valley, eagan, etc.) One thing about Section 8 is that you have to jump through a lot of hoops to comply with the county before the checks will start rolling in. Be prepared to damn near flip your house after every turnover. 

Rental licenses in the city of MSP are a one time $1,000 fee and additional annual cost. Not to mention you probably have annual inspections, which will turn up a laundry list of **** to be fixed. I stick to Dakota county for several reasons: 

#1) I know the demographic. We've done 300 Tenant Placements down here and finding high 700 credit scores and 5x monthly rent incomes is not uncommon. 

#2) Its close to my home. Hitler lost the war because he fought his battles too far from home. I try stay close. It may not be the highest ROI, but I like my properties close.

#3) According to the state, Dakota county has the lowest vacancy rate in the 13 county metro area. 

#4) Relatively newer homes get less maintenance calls. Most places down here are built late 90's early 2000s. 

Again, If you need anything answered, please reach out. I'm down to help you. 

Thanks Hersh M. I really appreciate your words of wisdom.