All Forum Posts by: Pierre E.

David Greene has a book on Long Distance Investing I highly suggest that you listen or read to that book!
Then I suggest looking for Long Distance Investing posts here on the forum and long distance investing on youtube. Market choice will definitely be a covered topic in some of those areas. 

On Identifying your market data is king.  City Data  is a useful site, and combining it with tools like Zillow Rentometer and Redfin will help.  Propstream and Property Shark might not help so much with market choice as opposed to property choice but are paid services I have not used yet.

I have noticed some choose because of where they live, some because of where they have been the most besides where they live, or because they have a strong family or friend presence there and have an "in".... some people choose based on straight analysis alone... You will need to know factors such as economic trends, population shifts in or out, state laws and local laws (landlord friendly vs tenant friendly etc)... physical property hazards by season (flooding, rain, hail, fire) or in general (ie I personally can't fathom investing in New Orleans unless it was to AirBNB for the short term and then sell the property)   - If you can narrow down to one or two states, then I would look for "where are the tenants I want to deal with located" theres so many ways to answer that question but you may want to start looking in a major metro area... most states have less than 10 major cities or areas of decent population density.  So if you narrowed to two states and 20 "areas"  you at least  cut that haystack in half while searching for that needle. Some people then also include price rent metrics to help.  Also decide if you want to maximize cashflow no matter way, or you want a blend of cashflow and appreciation/equity build up.  Different places offer different things. 

I hope some of that has helped!  

@JD Martin  & @Michael Plaks Thank you both for the candid responses and the humor!  (I swear were not all crazy over here in DC! weve got Joe Asamoah and Russell Brazil to back me up ... I hope!)     and yes self employed 1099 non food makin/bakin ppl :-) 


I have looked at several articles, (always more detailed than the videos I have watched so far) ....the main ones are below - An appraiser won a challenge to his REPS status because he was involved in the buying and selling transaction. Since that is for valuation's sake....almost as if that appraiser "makes a mark on" the property, not sure if the same could be applied to the inspection of the property or not?
A lawyer won REPS status challenge because he owned a prop management company more than 5% had material participation through providing legal services, but because he did some sort of work in a business that DID qualify (within one of the 11 categories) and he had sufficient ownership of it, it met the status. 
Mortgage Lender didnt qualify, not directly involved in the buying and selling. CPA doesn't qualify. 

From this and other questions just have been trying to understand more. I have no desire to tango with the IRS and like to keep my nose clean, but am exploring data and options as I consider what routes to pursue going forward in real estate as well as what resonates best with me. 

Again I really appreciate your thoughts and will keep learning and would love to hear others perspectives as well, if anyone has done something specific, and if it has passed muster. 

also @ Michael I don't mind digging through case history of you might have some guidance as to how to start me off? 

Key REPS Data I have found so far (I havent checked Kitcies yet! but maybe theres some there too):
irs.gov/publications/p925
therealestatecpa.com/guide-to-qualifying-as-a-real-estate-professional
thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.html
thetaxadviser.com/issues/2014/jul/skarbnik-july2014.html

Did you ever find who you were looking for?   I think two might be Cerebral Tax Advisors and  Your Locums Tax   guy named Ben he is a CPA and CFP.   (ended up on your post while looking for something else... but would be interested to hear how things have progressed for you I am interested in GA real estate and I do locums)

Another aspect:
A plumber works installing plumbing on houses - would that meet for construction/reconstruction or conversion?

A wholesaler assists bringing together buyers and sellers and involved in the acquisition of real estate

An appraiser appraises, or an inspector inspects, real estate during the sale transaction process thus correlates to the  acquisition category

If I own 100% of a rental property turnover company where we redo cosmetic work to homes to get them rent-ready - repair /replace flooring, repair holes in walls small or big, replace drywall and repair leak damage and I spend >750 hours managing and coordinating the operations of that company...

which of these would qualify?

. 

One question I do have is what is different about choosing an area for large residential  (multifamily) vs small residential (4 or less units)  any other special considerations?  

We could also test it out and try out what he said! It would be interesting to see what people come up with. If its all math and data... we should theoretically be able to arrive at the same points. definitely gonna come back to this. Thanks to OP

IRS-REPS Status - What qualifies as Real Estate Professional?

I have reviewed multiple sites blogs posts etc about REPS and found very detailed information, but one area still remains less clear for me. There are 11 categories it gives for REPS qualification. I get all the other stipulations, but what are some examples of jobs that have allowed qualifications for REPS? For example, would spending 750+ hours being a wholesaler count? Would someone who stages properties and does real estate photography count? Does being a property inspector count? Would someone who does mobile notary for closings count? CPA’s and Mortgage Lenders don’t count, but Appraisers and of course real estate agents do according to case studies.  Anyway trying to build a better list of examples of people that have actually qualified.

Looking for examples that qualify or examples in these 11 categories below of
“real property trade or business is any real property trade or business that is involved in:”

- development, redevelopment,

- construction, reconstruction,

- conversion,

- Acquisition, brokerage

- Rental, leasing

- operation, management,

Trying to gain a more clear and detailed understanding on that part. (for example I am going to assumed the appraiser in a case that was studied qualified because they were involved in the actual acquisition part and they were directly interacting with the property and providing a service for both the seller and buyer.

Any insight or examples that someone could share would be helpful, thank you!