All Forum Posts by: Richard Balsam

It shouldn't be too difficult to find a CPA here in Georgia - or in your area of Savannah. There are thousands of investors - each must do their taxes. I assume you are looking for a CPA - and not just an accountant. My CPA charges me $2500 per year for my taxes. I save many times this - each year. An accountant will charge whatever he can- I've heard them quote others $750-1,000-$1500 for 5 hours of time to prepare the tax forms and file. As you know, a CPA is a designated abbreviation, after passing the state test. So - I can't believe you are having a tough time finding someone that understands real estate in your area of Savannah. As long as they are computerized and can follow depreciation schedules for each property and each upgrade depreciation schedule ( different useful life for carpet vs. appliances, etc), and know federal and state laws as to what to deduct, and strategies to minimize taxes going forward - you should be fine. A boxed tax program will never work once you start buying different properties - so now is the time to begin your search. Now that taxes are over for the year, you have the next 9-10 moths to find a decent CPA - shouldn't be too difficult.

Why not ask the people in the Savannah Reia? They are part of the same Reia group that I am a member of (Atlanta Reia). Everyone there must have a good CPA - or may be throwing money away. I got lucky- after a recommended CPA literally developed Alzheimers, and sold her practice to a real piece of work (putting it nicely),  almost by luck, I found my current CPA - who was just starting his own practice and accepting new clients. He also owns a few rentals too - so that helped.

Now he has 7-8 CPA's on staff, and had to move once since his practice is growing. I will continue to pay $2500+ per year - even though there are much cheaper out there. The ease of tax time, the annual meeting before taxes are to be filed, his recommendations, my tax savings, etc- more than offset his cost to me. Did he know every tax rule I would need when I first met him - no. He actually reviewed tax rules with a huge IRS tax book in front of me - with his assistant ( another CPA) during one of my meetings, and made no excuses that the rules may have recently changed and wanted to make sure my questions were answered correctly. This showed me at the time that he really cared about getting me the right answers - and not just assume anything, and covering up that he didn't know something. He knows a ton, and the few areas I had questions on- he now knows exactly what I need - after reviewing in front of me - that one time. 

Good luck. With some research, I'm sure you will find the right CPA- they are everywhere. Just need to find someone that understands our industry. Ask if they own real estate themselves.

What a great year to start your career! You're showing everyone what's possible when you have a purpose and tell everyone you know (i.e. networking). Looking forward to hearing about your future successes! 

In the past I used to let it go- not worth the trouble. I "woke up" a few years ago! Now- if a tenant leaves in the middle of the lease, and/or if they owe money, I hire an attorney. Usually the letter is enough to scare the tenant. Sometimes, it costs some money to file court documents for a garnishment. Best thing I ever did. Twice in the last few years. Both times, received payments. Once from from their employer directly, until paid in full.  The other- was afraid and dealt directly with my attorney until paid in full ( she left with serious damage to the house as well as owed past due rent). She never showed up for the court hearing- I won by default anyway.

Another time, I went through my credit reporting company where I run the applications through. They offer a service to report to the credit companies for past due rent. I actually forgot that I filed it . A few years later, the old tenant that owed me $5K- wanted to buy a house and needed it removed from her credit file. Settled on 50% - and she paid, certified funds $2500. Then, I filed to remove the debt- as  "paid in full"

So- there are ways to collect. Depends on the situation. If they owe a lot of money or if the house is damaged- I will go after them. If they were great tenants until a problem happened, I usually don't go after them - if they leave and clean out the house.

I recently foreclosed on an owner financed home of ours. Once inside, the cat smell was overbearing, It seemed to be everywhere. Turns out- the cat used the air vents as it's relieving stations, (the air conditioner was now part of the problem) as well as at the base of the staircase, and the wood trim was saturated as well. Found this Nature's Miracle spray- it works incredibly well - no more smell. I didn't think it could work as well as the reviews on Amazon- but they were right. Took two different sprays to remove the smell. I think I used half the bottle! The way it works is by enzymes - they "eat" the bacteria from the cat pee- which is where the smell comes from. Of course, after a few days, once the smell is gone- you still need to clean up the place. Just because the smell is gone - doesn't mean the mess is. They also sell an inexpensive cleaner which I also bought.

https://www.amazon.com/Natures-Miracle-Remover-Flower-Meadow/dp/B00A0MTGJY/ref=sr_1_12?s=pet-supplies&ie=UTF8&qid=1492194224&sr=1-12&keywords=natures+miracle+cat+urine+spray

Living on the border between two towns (well...close enough to the Georgia border!) you need to decide if you have more initial opportunity in Alabama or Georgia. You may also call the Georgia Real Estate Commission ( GREC) to see if they have a reciprocal license agreement with Alabama - where you are licensed and in good standing in your state - and then you can fill out a form in Georgia, find a Broker to hang your license here  and you will be licensed in two states. Of course, you must follow the education requirements for Georgia every four years, as well as Alabama's education requirements.

If you decide to get the Alabama RE license first- once you pass the real estate exam in Alabama, find a Broker there. Then fill out a form here in Georgia, find a Georgia Broker- and you can operate legally in two states. I moved here 18 years ago from Florida. I did exactly the above, and was active in both states for 10 years before deciding to file "inactive" status in Florida for the time being, since I am not doing anything in RE down there right now. Still have to keep up with the education requirements in both states- which can be time consuming.

If these people are so willing to evict you, and now gave you back your two month's rent, find another place ASAP - and use that money for a deposit and start fresh. If your landlord gave you back your two month's rent payments- they are trying to comply with the law that says if they accept your payments they must restart the eviction process. If they refuse your payments, they can "keep" the existing eviction alive. 

As a landlord myself- I hate evictions. The lack of monthly payments while waiting to get possession back, and it is always dirty, and repairs are always needed. Then, must wait while remarketing the home, go through the application process, and hope this person pays on time and takes care of the home. Meanwhile your landlord already had someone with a valid excuse that wanted to pay and they refused. I guess they enjoy empty rentals...Find another one quick- so it's not on your credit for the next landlord to see. But...your next landlord will need to know about your situation, since they will ask to speak with the landlord- as a reference. Someone will understand - especially with documentation proving your case.

@Willy Wallace - Forsyth is a great market- for long term buyers. Does not have the appreciation of homes closer to Atlanta. That said, I attended one foreclosure auction a while back - the last one I will attend too. Had 20 properties on the list, a few interested me. Most fell off. Had 7 go through. There were approx 20 investors bidding for these 7 homes. If it were a Hollywood screen play- it couldn't have looked any better... if the movie was about Auction.com and how they get investors to bid against themselves, so nobody makes $ in the end - except Auction.com and their clients - the banks. All properties were overbid, some hotly contested. I was mumbling under my breath- that for each "investor" - this will be his/her last property! Crazy stupid prices. All were above 90% of any FMLS asking price. Better off shopping on FMLS, make 90% offers, and get the seller to repair the home before closing! Very tight auction...not a place to buy homes right now.

If you do a mailing, expect a ton of competition mailing to these same homes. 

But...if you do land a wholesale deal- it should be sold same day - depending on the deal of course. If you land a deal- let me know. I can be one of those buyers! 

@David Stewart - Thanks for the update to his name. I will do my part to spread his name around as someone to avoid. Sorry to hear of the problems you're having with this guy. Karma can be tough - it's just a matter of time for this guy.

The best way to stop this guy from doing more damage to others is to name names. The investor community is small enough that his jobs will dry up and he will go away - if not land in jail. 

@Leland Nicholson - great advise! You sure have a lot of experience that most others on BP don't have! I see you're off of Webb Bridge. I'm off of Kimball Bridge. My experience has been mostly lease option and owner finance - for the cash flow. You're correct in renters in general- do not take care of properties -if at all. I got good at their "game" years ago and that's why I only do lease options- with non-refundable deposits, and long leases. Every time I experience a problem, something else gets added to the lease to prevent it- or gain some teeth if we have to appear in court. Lately, my lease option tenants have been doing fine- but the turnover has been costly. I mostly have the repair costs  equal to or less than the new option deposit from the next tenant. This helps with the turnover cost.