All Forum Posts by: Paul Beets

@James B.

100%. I work for a company called Replace Your Mortgage. It is a financial education and consulting company. We have a large private Facebook group full of investors doing what you described.

The big value you offer is a bank list with name and contact info so you don’t have to hunt for a bank that will do what you are describing.

Send me a message maybe we can connect!

Paul

@Eric D. I do have my own CPA that I’m very happy with. My CPA had some very simple questions about how to handle passive losses and RLS refused to weigh in on the situation whatsoever. It isn’t a team if the team members refuse to collaborate. In this case RLS would have nothing to do helping much CPA properly file taxes in their entity structure.

I was told when I signed up that they had an “in-house” CPA that would be happy to answer any questions that my CPA had. That just did not come to pass.

Paul

which entity claimed the operating deductions and which entity claimed the depreciation?  

Is it OK for the operating company to claim depreciation for the properties that are owned by the holding company.

This situation could cause major passive loss issues depending on your situation.

Scott Smith has refused to weigh in on this “difference” and has since referred me to a CPA who is so busy that I won’t be able to speak to him on the phone until May.     So essentially zero support for my concern.

I feel like I've been lied to when I signed up for their services. I was told that they have an IN-HOUSE CPA who would be more than willing to assist my CPA OR do the taxes themselves.

Question after question I'm being told that my CPA needs to use his "own best judgement" rather than rely on advice from the firm that setup the entities to begin with.

I think all potential clients need to be very mindful that Royal Legal Solutions WILL NOT back you up with your CPA when you go to file your taxes. So far it has been a nightmare for me with no end in sight.

@Scott Smith:    I sure would like to have your personal cell phone number too.     I feel like I've been lied to when I signed up for your services.     I was told that you have an IN-HOUSE CPA who would be more than willing to assist my CPA OR do the taxes themselves.

Question after question I'm being told that my CPA needs to use his "own best judgement" rather than rely on advice from the firm that setup the entities to begin with.

I think all potential clients need to be very mindful that Royal Legal Solutions WILL NOT back you up with your CPA when you go to file your taxes.    So far it has been a nightmare for me with no end in sight.      

I'd love to have your personal cell phone to discuss my situation instead of playing telephone with your assistant Megan back and forth.

@Dylan Tanaka unfortunately nothing in NW Indiana “the region.”

It also really depends on the title company you are working with.   I've seen +$500 swing title company to title company.   I usually budget $2000 when I'm doing numbers on the back of the napkin.  Sometimes they are $1700 and sometimes they are $2500.

Like Dylan mentioned ... if you are selling a property you may own agent commissions etc.   I'm not including those in my ballpark mentioned above.

@Benjamin Greene Renting for 1650 but mortgage is 1300 ??? It doesn’t sound to me like the property is going to cashflow?

7% Vacancy = $115

3% Maintenance = $50

3% CAP rate = $50

10% property management? = $165

Mortgage = $1300

All of that equals $1680 and we haven’t even added in taxes & insurance?

This might be a blessing in disguise. Property should stand on its own two feet when the underwriter looks at it.

Paul

@Mark Tabah

I agree whole heartily with what @Noel R. said.   I'm an OOS (ok ... Michigan isn't THAT far from Indy).   But my experience has been you MUST manage your property managers.  AT LEAST until the properties are rented.   I am actually in the process of switching some of my properties to @David Moudy & Co.   So far so good!    They come HIGHLY recommended by many of the most experienced investors in and outside of Indy.   My experience has been good so far they respond timely to any and all e-mails and phone calls.

PM me if you have any questions.   I've been with two other property management companies and have interviewed more than a dozen of them.   I'd be happy to share my experiences.

Cheers,

Paul

@Molly Murphy

I’m exactly as you described. And no ... I’m not looking for another J.O.B. I’m looking to get out of the job and have more free time on passive income.

That being said I have been buying up single family homes and putting them under property management. I have figured out I need 31 doors to supplant my income and I’m at 15 doors today.

I have converted my 401k into a self directed and am doing private lending to yield a higher and more stable return than the stock market.

Best of luck.

Paul