All Forum Posts by: Ray Johnson

@Account Closed I'm following up on the question regarding How big data has helped your REIT Compound? I've looked through your website GetCompound.com extensively, it looks like your team is well connected and has access to a vast information pool, How is this access setting Compound apart from your competitors?

@Jaysen Medhurst is giving you great advice @Trisha Spear many people retire then jump into REI and miss out on the opportunity to use their pre-retirement income value. The bank will give you more today from a regular W2 income than from your husband LEO Pension. I have a friend with DHS who retired in September, he and his wife purchased their first property this past summer before his income dropped in retirement.

@CJ Witmer I think you may not have provided the question in a clear concept to your CPA based on the response you received. You paid some court cost and probably attorney fees during the course of the eviction, these expenses are a business expense i.e. an accounting expense on your books. In regards to the uncollected rent, I would think there should be a Bad Debt write-off on your books as well. I'm not a CPA so I will defer the official answers to some of the BP CPA's who specialize in REI.

@Brandon Hall and others may be able to assist.  

@Patrick Fraire Like many others I would never do this, I would do the following: 1) Educate your girlfriend on the rental property basics so she can make an informed decision herself, she's an adult and her successes and failures are all on her. 2) Point out to her that someone with bad credit and money problems generally are due to poor decisions and bad spending habits. These people are saying they can't afford the market rent, have them move to a market they can afford and stop living beyond their means. Lastly, who moves to another state with no place to go or any housing lined up?

@Huso Akaratovic the Federal government has a Fraud Hotline to report things like this, they also have investigators that will follow-up. Go to the HUD website and report it. If people who play by the rules don't step up, more people will disregard the rules and those with good morals and ethics will be on the losing end. The investigators will determine if this is fraud or someone who purchased and then experienced a life changing event causing them to vacate the property.

@Ryan D. Congratulations on seeing beyond the flashy lights of the alleged "Financially Free" neon sign.

Elon Musk, Warren Buffet, Bill Gates, Jeff Bezos, and too many more to list are all Billionaires yet they still go to work doing something they love, They're not putting in 8-10 hour days 5 days a week but these are people that are "financially free".

I'm always curious as to what people plan on doing once they are "financially free", most will say travel the world, but it you retire at 35, you'll run out of travel destinations over the next 60 years traveling several times a month before you hit that 95th birthday if that's the only thing on the agenda.

My question to all of you would be what's the plan once you retire in your 30's?     

@Anthony Wick I just did a similar lease like what @Chris Hewitt has mentioned. I did an 18 month lease that started in December. I told the tenant that I wanted the lease end cycle to end in the summer, He mentioned that he wasn't sure about an 18 month lease in case he wants to move, he'd be on the hook. I did offer a discount as a middle ground.

With this strategy in mind I may have gone too far with the discount because I got 13 qualified candidates. I was on the fence on whether to offer $25 below rental comps or $50, I wanted to lease quickly before people blew their money on Christmas so I went with $50 a month below comps. When I got that many candidates in one week I knew I should have went with $25 a month below comps. At the end of the day I'm willing to accept the $450 difference between the two discounts and not have the property sit vacant.

@Joe Hancock While you will need to have a full inspection on this property, the posting screams "Newbie or inexperienced investor trap".

They are noting that there is water damage from an unknown source, yet they can already tell you the rehab estimate, and the ARV of $1.5 million. Says it's B Class but 100% vacant, Will the $400k rehab of the entire property keep it as a B Class property or will the finishes lower the grade of the property?

The owner is willing to Owner Finance on a $400k rehab that nets a $1.5 million valuation, why is he giving away a $900k spread and not doing this himself? Worst case scenario he would partner if it really was a $1.5 million valuation after rehab. 

I could go on but the list is way too long. Never pass up an opportunity to take a look at a deal, you never know what the other side is thinking, just know what you're looking at.

@David Rende This seems like a lot of work to Not have to pay taxes on the remaining hypothetical $4,000. You'll probably spend more time (the dollar value of your time) and money trying to get to zero taxes than you would by just paying such a small amount.  

While this $4,000 is a hypothetical number, not knowing what the real number is I would say at some point as your income grows you'll realize there's no way out from the tax man, after all this country does have to have some money to operate.

@David Rende This seems like a lot of work to Not have to pay taxes on the remaining hypothetical $4,000. You'll probably spend more time (the dollar value of your time) and money trying to get to zero taxes than you would by just paying such a small amount.  

While this $4,000 is a hypothetical number, not knowing what the real number is I would say at some point as your income grows you'll realize there's no way out from the tax man, after all this country does have to have some money to operate.