All Forum Posts by: Robert Leonard

This is not investment money.  If you could need it at any minute, it's short term money that shouldn't be in anything more complicated than a money market mutual fund account that you can write a check from.

I'm not in FL, so you need to find out what the law says about these matters in FL.  Here in Louisiana, I have a tenant move in/move out inspection form that they have 7 days to fill out.  It includes each light fixture & blinds in each room, any serial numbered items and working light bulbs.

My lease specifically states they are required to replace bulbs with like bulbs (not the cheapest bulbs you can find at a dollar store).  They are usually in sets, like for ceiling fans or bath light fixtures - so having matching bulbs matters.  I use LEDs now and they are expensive, so I want them replaced with the same thing.  As I see it, they help keep utilities low and make it easier for my tenants to pay their rent.

I would withhold for the cost of replacement of all of these items if my tenant did the same things.

Its tough for me to consider any options without more information.

Two main missing pieces of information are, what is your financial situation outside of having $50k in hand and what kind of "new real estate venture" would you invest in with your father?

If you just moved to Houston, was that part of a job transfer by your current employer or have you just changed jobs?  Can you qualify for financing to leverage your cash or will that be after some time on your job?

If you invest with your father, how long is your cash expected to be deployed before you expect get it back?  This might be your best option, if you are looking to fix and resell until you are in a position to be able to qualify for long term financing.  With your dad's experience and your cash, you should be able to qualify with asset based lenders.   That won't be the case for long term lenders (banks/mortgage companies) that you want to use for a house hack type of long term deal.

Hello and welcome to BP @Nick William Giittinger!  Glad to connect with you here.  We have a local meetup group that meets on the 3rd monday of the month in Lafayette.  It's free to join and start making connections with active investors.  Look us up on meetup.com/bpacadiana

See you soon!

Congratulations @shaun 

@Shaun R.  Do your self a favor and DO NOT RUSH TO FILL YOUR VACANCY!  Be deliberate in your process.  Call me if you want some pointers.  I'll be in the area most of this coming week.

Here's what makes your question important. Have you heard about the over employment problem? It's not in all areas of employment, just in the legal profession in LA. When you see an attorney on every other billboard or TV commercial, you better believe we have an over employment problem! It's $100 to start and $35 a year of fees to operate an LLC (limited liability company, it is not a corporation) in LA. You won't get consumer terms, like 30 year mortgages at 4%, but it is not hard to get a loan for your LLC if you can qualify for a consumer mortgage. Expect a 15-20 year term at .5-1.5 % higher annual interest rate and an adjustment to the rate or balloon in 3-5 years. Your credit matters and you will have to personally guarantee the loan. Talk to a commercial lender at a small or regional bank, not the regular bank loan officer who does consumer mortgages. The LLC doesn't protect you. You protect yourself by managing your assets properly within the LLC. That means nothing in your name and no commingling of funds. No legal advice here. Just food for thought for the conversation you should have with your attorney - except what I said about over employment. ;-) they might not find that funny.

The KW office in DS is owned by the same broker who owns the KW office where I have my license in Lafayette.  KW, generally from the man at the top, Gary Keller, follows a phyllosopghy of treating an "agent" like the independent contractors that we are.  We are not employees and many brokers ack like agents are their employees.  The local franchise office team leader will be different in each office, but I've met that office's team leader and I think you should meet him and talk about your plans.  A broker does accept a lot of responsibility with ensuring your compliance with RE law, so expect some oversight and requirements from the office because of that.

@Chance Delome

It's your decision, but I would cash-in if I were in your shoes.  The tax free portion of your huge well-earned gain based on current tax rules is the main reason I would cash in.  Tax reform is coming and who knows what the rules will be when that all settles?  

Historically high values are another reason to sell now.  Yes, it might go up more in value, but how much appreciation will it take to cover what you stand to lose if the gain becomes taxable?  You could avoid the increased taxes with a 1031 Exchange, but those are a lot easier said than done.

You clearly understand the business.  IMO, there's no better way to access 100% of your equity with 2/3 of that being tax free than to sell now.  That's how I would look at it.  Congratulations!

1. Do you know what FEMAs determination of the % of damage to the property?  The owner should have received a letter of determination of damage to the property.  The permit office will have a record of that if you did not receive it.

2. Do you have an elevation certificate to know where the top of the bottom floor is relative to the base flood elevation?

3. Is the electric meter there or was it removed? You will need a permit to get power turned on.  The permit office will explain all of the details for that.