All Forum Posts by: Robert Jenkins

Nick-

A book i just finished about human behavior and thought was great. "how to win friends and influence people." Written in the 30's by dale carnagei. Great read, really relevant, some of the stories seem crazy though.

Your knowledge is invaluable to me and i appreciate your input. As investors go though it's our job to put in the leg work and find out if we can get a better ROI with readily available contracts used by trusted BP memeber rather than shelling out 50$ per contract and not doing any work. Just my personal take on that, a dollar saved is a dollar compound interest will turn into 5000 by the time i die

Chris,Brian... simply put...YOU'RE AWESOME appreciate the info guys.

i saw USlegal forms but i thought what i saw was like 40-50 bucks for different contracts.

I know you're big on the sub2 (aka sub2master!) if you had one you wouldn't mind sharing i'd love to see it, and if not it's ok i'll only cry myself to sleep EVERY NIGHT! =P

So i tried searching and nothing really comes up that is useful.

Sorry if this is a repatitve question, but does anyone have;

PSA contract
Assignment contract
Sub2 contract
Fee contract

In .pdf format for CA? Or know where i can get them for free.
:D :D :D

You can depreciatiate (write off) the value of the improvements on your investment property. On residential i believe it's 28 years.

Say you buy an investment home for 500k and the assessor has the land valued at 200k you can then write off 300k (improvements) divided equally over 28 years or 10,714k a year you can write off on your taxes. Now say you've collected only 15k in rents now the government will get their hands on a portion of the 5k difference instead of 15k.

Basically it helps lower your taxable basis.

For commercial it's 39years and for those people who are really just "hiding" money what they do is buy properties in a leasehold interest (which is pure improvements) and they get to write off everything over 39 years.

You're thinking to inside the box.

Get creative with finances, exchanges, financing, leverage, etc...

Rich weese has said he's done 1000deals and he's pretty much awesome. Read his profile.blog.meet the investor section.

FHA is probably out of the picture if it's an investment. Is there a reason you're financing through the bank to begin with? Is it a REO or Short Sale? If it's owner occupied can you try asking them to carry the financing first? It can save you prepayment penalties, quicker close, more favorable(aka leanient) terms. You can save money getting into it and still make it an investment.

The strongest pre approval is from a direct lender (aka BofA, Chase, Wells, Local bank) rather then a mortgage broker, but if u build a relationship with one of those guys they will be your best friend.

Never accept the lenders terms it's NEGOTIABLE.

The best rate depends on your length of hold and goal of the property. If it's a 5 year hold and no more you can look into interest only loans for cash flow or shorter (10-15yr) fixed rate loans for smaller int rates to build up equity if u think the appreciation will be there.

Legal investment company??? So not bernie madhoff? *ba ding chhhh*

Um the typical formation is a Managing LLC with a bunch of other tiny llc u hold your properties in. That if you're an investor and not a flipper. However and acct and or a lawyer will best detail what type of company entitiy you should use because there are perks and problems with each.

THE LLC can designate %'s that eachmember is entitled to and can be changed and edited later on. read up on those.

The best practice in term of sharing the profit is to share it. I think you may have meant the best method to state who gets what % of the profit and that may or may not be an LLC. Again not a lawyer of CPA

I don't know if you've ever seen those old "caught on camera" shows but there was this one guy who use to secretly film "hobos" and one in particular that i remember is a guy who had a "jumpsuit" of hobo gear. Dirtiest looking guy with rags and blankets and a sign on the freeway offramp. Definately thought he was genuine but the guy with the camera follows the hobo when he leaves, for a short distance to his new RANGE ROVER. The guy pops off his hobo jumpsuit and changes into a nice shirt and jacket he has in his car. The dude said he could make as much as 500$ a day on that off ramp.

Tax free he's pulling in over 100k a year.

Josh. if i may get off topic one last time in this thread. YOU'RE THE MAN!

Thank you and please return to your regularly scheduled posting.