All Forum Posts by: Robert Leonard

Yep, see you there in September.  The meeting isn’t posted yet, but it will be on a real good topic and it will be well attended.  Make sure your RSVP when we announce it!  See you soon.

Welcome to BP @Benjamin Chadwick! The two aspects to consider are matters of legal and tax considerations.  The reason the “right answer” is different for different people is we are all at different levels of assets we need to protect and we each have different strategies we pursue to work toward our investing goals.

These are not questions to answer here, but with your legal and tax/financial advisors.  What is your net worth? That’s what you need to strategy to protect.  What kind of income do you have and what will be the tax consequences of the different forms of income you expect to achieve through real estate investments? Do you and your wife own everything together or do either of you own separate property?  Taxes on fix and flip properties are very different from the taxes on buy and holds.  That’s why it almost always makes sense to do business in different entities with tax strategies that best fit each investment strategy.  

I realize these points are kind of all over the place and you didn’t mention these things. I’m mentioning these other things for the benefit of the reader who may have ideas beyond what you mentioned.  There are a lot of individual factors that make the “right” answer different for each of us.

I recommend you join NOREIA (New Orleans Real Estate Investors Association) to get connected with other local investors who can help you find good advisors who do a lot of work with real estate investors.  Lookup attorney David Birdsong.  He is local to you and is very active in working with investors.

Welcome to BP @ethan 

@Ethan Davidson! Sounds like you have smart friends? LOL! You just missed our meetup this past Monday night.  The sooner you start, the bigger your advantage in the long run!  See you around here and around town!

You will have a title with title insurance.  The question is, will your lender‘s preferred title company issue a title policy if you ever want to cash out refinance.  Or will a buyer’s title company issue a title policy if you ever want to sell?  Those are the key questions!

I have zero to offer on the perpetual servitude question?

Hello Travis,

http://www.gulfsouthtitlecorp.com/about. Ask for David Birdsong

If he can’t help you or doesn’t serve your area, he can probably offer a recommendation of someone who can.

It is a valid concern @James Maness.  It’s not a reason not to buy. Just be aware of the market condition when you set your expectations about future rents. Avoid any overly optimistic projections of raising rents and occupancy in the near future.  Rent and occupancy rates are a combination of management and market conditions!  I hope you found a great deal!

"The secret is ... THERE IS NO SECRET!" - Dale S.  One of, if not THE top real estate investors that I know.

Hello @Kevin Del and welcome to BP.  My original post was in response to someone from out of state who said “South Louisiana will become ghost town like Michigan” after the flood.  I disagree with that.  Despite the fact that it is no doubt true, that some people ARE tired of the flooding.

When you say people here “aren’t strong, they are just stupid” I think you are venting your personal frustration. If you experienced repeated disasters here and chose to move elsewhere, the freedom to make that choice is yours.  I hope you find peace and happiness.  

We all have unique experiences with how we are impacted and how often.  I have stronger relationships with friends, family and others less fortunate who choose to be here to stay.

Welcome to BP @Julie Kim!  

You can find the flood zone and whether or not an address flooded at this site:

https://atlas.geoportalmaps.com/ebr

(Before you put in the address you want to look up) If you check the layers, select “boundaries” then check the box to show flood zones and the box for “estimated inundation area for flood of 2016” you can see if a location flooded or not.  Many placed flooded that are flood zone X.  Flood insurance is not required in flood zone X.

Nobody is fixing flooded properties and selling them cheap.  It is a matter of supply and demand.  Most rehabbed properties that flooded are selling for more than they were selling for before the flood.

The market is kind of like swiss cheese when you look at pockets of good/bad that happen around the city.  It’s like anywhere, you really need to know the market.

Welcome to BP @Account Closed!  I’m glad you found BP. You can make some great connections and learn a lot here!

You can if you want to, but you don’t have to go that far from Youngsville to find good rental properties.  That house for under $25k is just a low price. There’s a whole lot more to what might make it a good investment.  That electrician’s quote is kind of funny.  Not that there’s anything wrong with it, but I’ve heard a saying that when you first start, you should expect everything to cost twice what you think and take twice as long!

Unfortunately, many houses like the one you found sit vacant because the owner is trying to get a price for it that will not allow the property to be purchased and rehabbed at an economically feasible price.  Why would anyone pay ~$25k for a house that needs ~$20-30k of repairs, if it will be worth ~$35-40k after repairs?

That crime incident is a definite concern.  Crime happens everywhere, but rental properties in high crime areas are very managment intensive.  There’s money to be made there, but you have to have the right management (self or outsourced) and expecations that fit the location.