All Forum Posts by: Scott Crowley

@David Mulholland I have used "Novo" since day 1 and absolutely love them. They are 100% online but the platform is very intuitive and user-friendly, so, it is a breeze to get things done. Novo is technically not the bank, as you will see if you visit their website that it is actually through Middlesex Federal Savings.

Very easy to open an account on your own time.

They only do checking accounts, if also having a savings is something that is a dealbreaker. 

I enjoy the different features you can take advantage of with their program, such as creating reserves for your business and 'writing' checks from your account online for FREE.

I decided to go 100% online for this because every local/regional bank in my area either didn't understand my needs or just charged unnecessary fees. 

If you don't absolutely have the need to walk-in and speak to a real person for your banking needs, online is a super convenient way to go. 

Quote from @Kristen Descant:

@Scott Crowley Hi Scott thanks so much for the information! I did my own taxes last year and that is absolutely not an option this year lol. I do need to find a CPA. Any advice on finding a great one is appreciated. I've been wondering things such as, should this CPA be located in the state where my rentals are or in the state I live in? Or maybe it doesn't even matter where they are located. 

Not a problem at all!

The way I see finding members for your team, whether it be your tax professional, legal, PM, and so on, is simply understanding things at enough of a level where you know when interviewing them if they understand your business. In the short time I've been actively investing in RE, I've already had to switch my CPA because our conversations usually felt like I was having to tell him how to maximize my deductions. It wasn't his fault, he is just more tailored to the average W2 earners tax return.

Your thoughts about whether they should be in state or not will be up to you. It doesn't matter either way IMO, given the tax code is the code. However, if you prefer to meet in person and not over zoom or some other digital means, that would be a consideration. Also, if you're investing in multiple states, just make sure your professional understands what is necessary for filing based on that situation.

@Kristen Descant HVAC replacements are Capital Expenditures. Therefore, it is very likely you will have to depreciate the expenses over a set period of time. This is something to consult with your CPA to further understand the total amount you will be depreciating and on what schedule.

There are also many other things that are/could be depreciated and not necessarily wrote off as deductions in full, in any given tax year. Examples include things such as a new roof, flooring, appliances, HVAC, etc. Generally speaking, if your investment upgrades or adds to the property, it is a CapEx. This differs from things like general repairs/maintenance to fix and/or maintain a property, or, general cleaning and so forth.

If you don't have a tax professional already that you can trust and rely on to dive into the weeds on this stuff with, that is most critical to your long-term success in using the tax code to your advantage. 

@Juan Vargas The answer is going to depend on how you plan to utilize the capital from a cash out refi, along with numerous considerations. 

Yes, rates are getting higher by the second it seems like. However, if you have a specific deal that will produce a return that makes the higher rate make sense, then go for it. I'm assuming your current rate on your home is low enough to make you pose this question when I give you this answer. 

I would not be a fan of a HELOC as a better option. The rate won't be fixed and the trajectory of rates moving forward seems to be on an upward cycle. This could prove to be an expensive option, especially if you aren't planning to pay it back quickly.

Quote from @Nandini Sharma:

Hey everyone, 

I have an interview with a real estate company in a week. Any tips or advices to do well in that interview? Additionally, besides the general information is there anything else I should cover? 
Thank you ) 

 Depending on the specific position, there are generally three things I've always kept in my pocket for interviews (I've had a lot of different jobs so, plenty of practice!):

1) Demonstrate your character.

If the person looking to hire you overlooks your character because they want you to instantly know the entire business model on day 1, they aren't worth your time anyway IMO. A good leader will identify your character and understand that onboarding won't be an issue.

2) Come prepared WITH results.

I have always brought a padfolio or just some kind of professional notebook with a couple of pens to write with. Also, have questions already written down that you want to ask during the interview. Not only does this exemplify your preparation, but it will ensure you don't forget anything!

The other piece of this: if you can, bring actual results from your prior experience that are relevant for the position you are interviewing for. I always offer to discuss and show this during my interview and most of the time they don't even want to see it, they just want to hire you because you not only TOLD them what you have done, but you had the paperwork to back it up!

3) Be humble, be yourself, and just do the basics.

This is exactly as simple as it should be. If you don't know the answer to a question, own it and say so. Don't be so tight that you don't let the real you come out. Get loose, let your personality shine, and maintain yourself at a professional level while doing so. Lastly, do the basics. Such as, sitting upright (don't slouch or lean), be attentive, ask thoughtful questions, use professional language, and the list goes on.

One last thing: I like to send a thank you email with a brief 'pitch' if you will, based on how the interview went and what was discussed. I typically wait until the end of the day that the interview took place, or, first thing the next morning.

@Brian Adams This was an awesome read. I couldn't agree more with the foundational wisdom of understanding your "why", as we all have our drivers that push us forward...if we want it bad enough.

Thanks for the inspiration!

Quote from @Joe Wall:

Quote from @Scott Crowley:

Quote from @Joe Wall:

My realtor and his broker recommended going off-market.  I have some connections but most are not duplexes.  How do I meet people/companies who have off-market deals?  

Hey Joe! Are you new in the game and looking for your first deal? 

 This is my first deal.  Looking to house hack with a duplex.  

 Awesome! There has been a lot of good feedback on here for you. I personally found off market success by leveraging my property management and realtor relationships with a wholesaler they work with in their market. 

I mention this because if you had interest in having PM take care of your tenant, even though you are house hacking, you could build that relationship and your connections list that will be able to source those opportunities.

Something I'm currently doing (I'm also looking for multi) is literally getting in my car and driving in areas I want to pursue. If I see a property that sticks out, I write down the address, look up the property records, find what rents are/should be for that address, run an analysis, understand what number makes sense to buy it at, and utilize those public records to contact the owner and ask if they are willing to sell. 

You don't necessarily have to do all of that before you contact the owner. I just like to because it doesn't take much time and I like to be well-equipped if they say anything but no!

Quote from @Joe Wall:

My realtor and his broker recommended going off-market.  I have some connections but most are not duplexes.  How do I meet people/companies who have off-market deals?  

Hey Joe! Are you new in the game and looking for your first deal? 

Quote from @Brandon Taylor:

Hi everyone! My name is Brandon and I'm new to the Bigger Pockets space. For the past few weeks, I've been actively binge-watching an enormous amount of real estate content...and it's safe to say that I'm hooked :)

My family owns several properties in NW Indiana and I'm looking to break into the Central Indiana market. I'd enjoy connecting with other local investors and folks operating in this area. 

At this point, my biggest question is how to find reliable contractors that I can use for some upcoming potential BRRRR deals.

Hey Brandon! Welcome! I'm new to BP but only relatively new to REI. Just started taking action last year and haven't looked back since.

To answer your question: Connecting with people in these forums operating in that market that have feedback to give you about contractors they've used would be a valuable resource I'm sure.

Depending on how you plan to manage your investments, you could also establish a relationship with a property management company after you've done some interviews and utilize their preferred network of contractors if you've deemed it to be a good fit overall. That way the rehab to rent transition should be well managed and seamless. This is how I approached a similar situation when I went into a new market myself.

Quote from @Maximillian Engram:

Quote from @Scott Crowley:

Hello! Are you planning on holding title and operating your house hack in your personal name or are you planning on transferring title to an LLC? Assuming your house hack is no greater than 4 units for the sake of my question.

 hello,

In the beginning yes, I plan on operating it in my name then later transferring the title to an LLC. And yes, it won't be no more than 4 units

 In that case, as it relates to how many accounts you would/could have, will be somewhat reliant on how you plan to structure your asset protection. 

What I mean by that is: You will have a bank account for your LLC so that way any and all REI financials will transact through it. If you plan on holding more than just the one asset in the LLC, you can use that same account for those other assets that are being held by the same LLC.

If you plan on holding each asset you acquire in a different LLC, then that is where you would be holding numerous bank accounts to manage the investments.

Paying yourself: At a high-level view, all your doing is essentially like you mentioned, transferring funds from your LLC to your non-business account. Just make sure that when your operating agreement is drafted that you draw those funds based on the terms of the agreement, whatever that may be. When it comes to treating things like a business(because in this case it very much is) you want to follow what your OA states and maintain the entity for it to be worth the reason you have it.