All Forum Posts by: Rich Gabrio

Hi Folks,

Bumping this thread as I just picked up QuickBooks Pro 2016 to track my portfolio. Some bldgs. are managed professionally, some self managed.  The posts I have read on landlordaccounting.com are interesting, and based on my review the program would seem to be what I am looking for however, I have the same question Brandon Jenkins has, but specific to QB 2016. Is Jonathan's program compatible? It appears Jonathan Wolter has not posted here in 3 years, and his last update on his site: landlordaccounting.com/ was in 2013 as well.

Anybody have any updates on the status of his program, or any other tutorial resources that can assist with my scope of portfolio as stated here?  Thank you!

Thank you gentlemen for the information.  I paid $245K for the building, I believe on the open market I could easily get $300K.  The quote I received provides for a limit of $140K in coverage with a $2500 deduct.  There is a heading called "coins %" where the value is "80%", not sure what this refers to.   ACV makes me very skittish because of the depreciation element.  The records for updates on this building are few and far between as previous owners made their own sweat equity updates. I mentioned previously, the structure itself is fairly basic, however, I am not sure I can rebuild to like condition based on the limits quoted. If I can find it, I would simply like coverage that would make me whole (less deductible), in the event of a loss, so that I can protect my investment and rental income.  Unreasonable or unrealistic?

I recently acquired a small commercial building that was built in 1889. This bldg has essentially been in operation most of its 125 years.  I am not a developer, and therefore have no plans to refurbish this building, but rather hold for the time being and appreciate while I collect the rent.   Due to it's location and simplicity, It is a prime candidate for future development.  There are some minor improvements that I do plan to make, but nothing dramatic. The building is a fairly simple structure in the heart of a thriving historic tourism district north of Seattle, and is currently and was at the time of purchase, 100% occupied.  Every building on the street is 70 plus years old.  Most are also larger than my building is and those that have not been refurbished are in similar condition and most likely still the proud owners of active knob and tube.  Since acquiring the building, I have had all active knob and tube completely disconnected.  I have been working with my Insurance broker for a number of years now, and they are telling me that they are running into difficulty finding a provider that will provide coverage for anything other then liability for this bldg.   This afternoon, he has indicated that he has found one company that would be willing to provide loss coverage on an "ACV basis only", (in short, my understanding is that ACV is Actual Cash Value = Replacement Cost - Depreciation). Due to the age of my building, I am sure you can understand my concern here.   Additionally, they will provide up to an amount that is only 44% of what I have invested into the property (I purchased the property below market), and there would be no coverage for lease loss in the event of a loss. I really only want peace of mind in the event there is a fire, and I can recover my loss.  I find it hard to believe that is this difficult to find loss coverage for a bldg of this type given the # of buildings in similar condition that are still in operation in this country. Any guidance or suggestions are greatly appreciated!

Thanks Matt,

I am checking with the Resort Real estate office to better understand how they would handle this.  There is some debate as to what degree the resort agents can actually impact or create interest with a prospect there.  

Rich

Thanks Carly,

Due the somewhat remote location of the property (90 minutes east of Seattle in a resort community), and the scheduling challenges associated with the brisk vacation rental activity the property generates, it can be challenging to coordinate showings when the house is occupied. Most of the interest does come from the Seattle area.   I think the 3D tour is an excellent way to show off the property.  I will mention it to my broker.  Thanks so much for the suggestion.

Rich Gabrio
Pasayten Properties

Bumping this post for any feedback/suggestions.  Thanks!

Thank you both  I am focusing on small commercial buy & hold, Jimmy.

Not technically new to the site, but new to posting.....as of today!  Thrilled to be part of the community, and looking forward to sharing and receiving great guidance!

Background:   I grew up with a passion for Real Estate, nurtured by an underlying fatherly influence that until 3 years ago, had developed into nothing more than a passive interest and a dream that would likely never be realized professionally.

At 10, I wanted to build homes like my father. As a teen, the dreams of that 10 year old were being tucked away in the back of my brain in lieu of jobs that provided steady income and generous benefits. Yet, I have always recalled and admired how my father called his own shots, and as I later realized, through his accumulation of real estate intellect and experience garnered as an independent builder, he successfully shifted his focus exclusively towards the accrual of real-estate assets that served him comfortably for the rest of his life.

Having matured professionally in high tech corporate America, I conversely was conditioned to perceive that my only realistic option for acting on my real estate passion, was to seek out cross industry opportunities as a prospective employee within the real estate segment. I struggled to find the right fit.

This all changed in the Spring of 2011. Motivated by the desire to invest the modest sum of cash I held in savings, and influenced by my underlying comfort level with real estate nurtured from childhood, I packaged my savings with leverage on my primary residence, and acquired my first 2 investment properties. A bank-owned vacant lot, and a few months later a short sale revenue generating luxury home.

Through this endeavor, today both properties have doubled in equity but more importantly, I have also accumulated additional equity in the form of vital real estate intellect and experience that has also resulted in my first commercial property acquisition last Spring. 

I have also been able to rekindle the dreams of that 10 year old, and I cannot imagine for myself a more exciting and naturally appropriate vocation.

Thanks for reading and I look forward to collaborating with you all.

Rich

Background: I am not a real estate agent. I am a real estate investor. I own a vacation rental home in a resort community 90 minutes east of Seattle, WA. Although the property has done very well, it is now my goal to sell the property so that I can exchange in to commercial non variable income generating property. Although this resort has their own listing company/office, I have chosen to list with an outside agent/broker. I already have a trusted relationship with this agent. The resort has a strategy to milk all property owners for as much revenue as they possibly can, including charging HOA dues and water for vacant lots. They also have their own water company which also has jurisdiction outside the resort. They incent homeowners to have there rental business managed through their rental program (for which they take 50% of the proceeds) by withholding certain desirable resort amenities within the resort to those properties that don't participate. Their real estate company is allowed to advertise open houses but do so, understandably, for only the properties that they list. Properties not listed with them however, are not allowed to have any signage posted to indicate that the house is either for sale or hosting an open house.  The office will attract any drive by shoppers, that will stop in and aske to be shown properties. They have created a competitive advantage if you choose not to list with them. My  attorney who is very accomplished has reviewed the CCRs and agrees that they would not stand up if a suit were filed against the resort, but that would take some deep pockets.  They will not actively show your listing unless a prospective client has knowledge of it and has requested to see it.  If you are an agent with this brokerage, you sign an agreement that says that you are prohibited from listing any properties outside of the resort, and your commission for any deal closed is 1%. The resort real estate company takes the rest.  You find a lot of retirees or agents just looking to work essentially part time that make up the agent roster.  

Question:  I am acutely aware of the market in this resort, and therefore I believe that I have the house priced competitively.  I have also set aside a budget to market the listing in specialty vehicles like Luxury Homes Magazine, etc.   I  have conducted a little research on the topic of Buyers Agent bonus, and am intrigued by the idea here, given the paltry 1% paid to the resort agents.  My concern is that given the history and philosophy of the resort that the brokerage would not pass along any such incentive to the qualifying agent.I am hoping to tap into the vast knowledge, experience and creativity of this community for some ideas.  I believe that providing an incentive directly to the resort agent that brings a buyer would be extremely effective and create additional exposure that I am not getting today.  I am also not opposed to a sort of side agreement understanding that such an agreement may need to be constructed very carefully (if not verbally) so as not to put that agent at risk of violating any ethics guidelines.  Note that any such agreement for an incentive like this would be solely between myself and the agent that brings a buyer.  I am just looking for creative ideas given the uniquely restrictive environment in which I am operating here.

Thanks you so much in advance for any suggestions and comments.