All Forum Posts by: Dan Carver

There are good areas in Illinois, such as Belleville, Granite City, etc. just like in Saint Louis city. Just like the city, there are pockets of nice areas where people take very good care of their properties and areas that are dangerous and not worth investing in. Like anything else, you have to know your area and your market. There are some good opportunities to flip properties in Illinois, which is typically a better proposition than renting. The real estate taxes in Illinois are very high as others have mentioned, but they are still workable depending on what type of return you expect. Owning property is not ALL about cash flow; yes, it's important for a long-term investor but so is owning property in a nice area that's likely to appreciate. My advice is to base your required ROI on the area. I am very comfortable getting a 10-12% return on my money for a property in the Lindbergh school district; however, a property at Bates and Virginia is going to take a 20+% return before I even take a look at it. Just my $0.02

Dan Carver

The Property Hoarder

www.thepropertyhoarder.com

8711 Watson Road, Webster Groves, MO 63119

Get a real comparison report from a realtor.  If you trust the city or county assessor and their comparables, I have a whole portfolio of properties to sell you.  Or if you want to use Zillow as well, I'll be happy to sell you all my properties at their valuation.

The investors that make a living fixing and flipping and/or building a rental portfolio are those that usually get the leads directly from the seller themselves, a bank contact, a real estate agent, or an attorney.  There are so many people out there wanting to become investors right now and its easier to shove a property down their throat because they will be a one and done investor, so why not make all you can on the wholesale deal why you can?   This is why the wholesalers are asking such high prices right now, and can you blame them? There are a bunch of newbies paying for all these education programs that promise you'll get rich with no money and no knowledge of real estate.  The majority of wholesalers I've dealt with are shady and they don't get care about building relationships for the long term.  Don't worry, those types of wholesalers will be crying as the market continues to tighten and they have no deals.  If your business model doesn't allow you to take a break from flipping until the right property comes along, then you have a bad business model.  Pigs get fed, hogs get slaughtered.  A business model that relies on getting properties from a wholesaler is a lazy business model.  Get out there and contact some banks, real estate agents, etc. or do some direct mail.  That's the only way you are going to get a steady source of leads without the wholesaler market that makes it impossible for the deal to work.

You’d be better off to find a high volume flipper/wholesaler in your market and ask if you can work and help them for FREE if they teach you the business. Hands on is the real way to learn and many investors are open to helping people if you ask

We use builders grade cabinets at a place called Hoods Discount store but the price is similar to the in stock cabinets at Home Depot or Lowes. My experience is that it doesn’t matter how nice or high-end the cabinets are. If the tenants are going to damage them, they’re going to be destroyed no matter how nice. My recommendation would be to use builders grade, get a nice security deposit up front and go after them when they leave if they’ve damaged them.

Wade, did you read my entire comment whereby I said you could keep the IRA money in CDs? Maybe you don't understand that IRAs can invest in anything, insured money market, CDs, cash, bonds. Please explain how a 40% drop in the stock market would cause your CDs to lose value if you kept your IRA

I would create an LLC to own the property and open up a business checking for that LLC. LLCs were initially created to provide small businesses with the ability to protect personal assets. By owning it as an individual, you are opening up your personal assets to liability if something would happen at the property and you were sued for negligence. I would consult an attorney that specializes in creating LLCs for advice on your risk of doing it the way you are currently

People have support dogs for a variety of reasons.  Some people have them for anxiety and possibly the firearm makes them feel more safe and secure.  I wouldn't see a problem with that; I guess it would depend on what their psychiatric disorder is to determine if there was a dangerous risk of that person carrying a firearm.

This is not tax or financial advice. You know you can buy real estate in a self-directed IRA, right? You need to consult a CPA as it may be better financially for you to withdraw the money over multiple tax years instead of just in one year. You are going to get slaughtered with taxes. You could put the IRA money after being inherited in CDs if you want, take out withdrawals as you acquire properties, and lower your tax burden costs by spreading it out over a few years.

Thanks