All Forum Posts by: Pat L.

Hi Scott
Welcome....
I am very close to you in Wheatfield.
If you want to join our group let me know!
I was just recently looking @ a condo locally but couldn't
Make it work for the returns I want.
Good luck. ....

Good point
I have all the time in the world to dedicate to putting RE deals together & working hands-on.

What burns me is the time it takes to ensure IRS compliance !!!!!

Rich
I couldn't agree with you more.
My Italian wife wants the kids within a 10 mile radius so when my 19 yr old daughter wanted to 'dorm it' we told her we would take the dorm co$t & finance the down pmt on a rehab for her & 2 friends (who would be paying $450/mo each 'room rent') 2.5 miles from us.
We stole the home @ $55 sq ft but it took me 5 months (it was tough to get good sober help) & $30,000. But I did replace the kitchen, bathrooms & every door, window. I also had to re-wire & re plumb most of it to meet code.

The finished rehab put the cost @ $72 sq ft but it's 'bones' remain a poorly constructed 2x4 & we will sell it once she finishes college. Yep she wants a new build.

When my son finally decided to own his own home we talked him into a NEW BUILD. The rehab route was not going to be financially viable & way too many headaches/unknowns.
We picked up 1.2 acres (6 miles away) between a $295,000 & $185,000 home. The GC we chose was great as we had seen his work on a high end home.

Taking your build advice in earlier threads we built a 2200sq ft, 4bed 2.5 bath 2car garage, but went 2x6 construction using plywood throughout. Cost was $81 sq ft (not including land $26,000) but up here in the snow belt it's tough to get a basic (2x4 shell) new build for under $115 sq ft.

I just completed a rehab on a SFH we have owned for some time & unless you cut a lot of corners it would be tough in this area to make living doing it.

I enjoy your threads ... stay young my friend.

Hi George
We were going to do the 'wood look' in that foyer I just finished in the 'marble look' porcelain.
The women laid out about 14 'wood look' tiles, in a couple of colors, & to me it just didn't look right. Then my wife & the buyers wife were afraid it would go out of style too fast.

The 1x2ft tile we used was about $2.49sq ft & went down very nicely. It was easy to cut with the old 7" tile saw. The surface finish is very durable, as it survived a lot of heavy 'move in' traffic including appliances being dragged across it.

On the other hand the 14 pieces of 'wood look' tile I took back already had a couple of chips in the surface finish & corners & we were careful. So I would assume cutting it may not leave a clean edge.

However, the 'marble look' does have a high gloss finish .... but it does look classy!!! In fact the women visiting during the move etc gave it 'wow' approval.

good luck

Hi Juliet
we own rental property in Florida & investigated the LLC issue.
We have a good attorney who advised us otherwise.

I can't find the original article/decision he sent me but the following may help...we just have high liability insurance & the mortgage is held third party @ arms length.

http://www.alperlaw.com/asset-protection/family-limited-partnership-llc/single-member-llc/

ditto x2
I just did marble look 1'x2' porcelain tile with 1/16th grout in an entry foyer
looks amazing, buyers wife was is ecstatic !!!
buyers husband is still trying to pick a color for the garage floor!!!

no
it's assessed around $400,000 so I would guess that the taxes are close.

I have several nurses thinking about an adult day care facility but the taxes & current zoning are deal killers.

When in Australia (& being an Aussie Citizen) we opened bank accounts holding the equivalent of term deposits for 7.2%. Minimum return on one account is 3%.
Conv. Mortgages were @ 9%, Commercial around 12%-14% so we put some through a mortgage broker short term. So far so good & currency fluctuations are the only concern, but we plan on going there to use it/re-invest it.

We watched it being built over the years ..
If it wasn't for the taxes it could be an interesting buy...
IDEAS

http://www.realtyusa.com/property/property.asp?PRM_MLSNumber=418833&PRM_MlsName=BuffaloNY

Just a heads up...
I had this issue come up during my IRS audit.
I had my wife's S-Corp hold a mortgage note on one of my commercial properties. Title of which is held in an multi-member LLC. (I avoid single member LLC ownership as I feel they are more vulnerable if they are simply an extension of yourself).

However, if I didn't have the mortgage note fully documented & duly recorded etc the IRS auditor was reluctant to allow the expense.
The later is also good practice if you are using the mortgage to strip the equity to protect the asset.

I second Jon on Bill Bronchick's book "Wealth Protection Secrets of a Millionaire Real Estate Investor"
His books are excellent.

p.s. the auditor also requested a copy of the 'resolution' agreeing to the mortgage.