All Forum Posts by: Sean Ruggiero

5k is pretty standard in south florida from what I have worked with. 10k is a little bit high but that speaks to the current market, not so far out of the norm IMO, they are basically saying they want somebody serious

Interesting responses from everyone, thank you all. I tried to reply some time ago but for some reason it didn't go through. After finding out this is not the legitimate way to go, even though you could get away with it, I decided just to declare everything 100% legitimately.

On the upside, talking about the rehab, these are usally one-time expenses that can be added back in by the lender, which is cool and also only fair in my opinion. 

Anyway, thanks everyone again for helping me figure this out. It will be nice proceeding with a clear conscionce! 

They have an InvestHer meetup for women at the Panera Bread I think its on 17th street in Fort Lauderdale, I was always jelous that meetup seemed to open before everyone else after covid. There are also a lot of other good meetups going on now, including a number of them right here in Fort Lauderdale!

I know a lot of operators that will take care of everything from advertising to cleaning to customer interactions for 20-25 percent, you can message me if you need help finding them although I can imagine they wouldn't be too hard to find. But none the less, if you need contact, feel free and I'll be happy to connect you

I have had this conversation with many Florida investors. First of all, expect a massive discount, wood is not only much cheaper to build but is also much more difficult to maintain against termites etc, especially Formosan. A huge discount should be considered normal, and when you sell, your going to have to pass that discount on to the next guy. They just are not worth what CBS construction prices command.

As a cash flow rental though, it could be, just know what you are getting into. Get a lot of information on you termite history and report, get an inspection that has an inspector really familair with termites. 

As for insurance, insurance is getting more crazy in Florida in general, a policy that costs several thousand dollars is pretty normal. Citizens is state run insurance which is like a last resort, I've never heard of Citizens denying a policy as long as you meet the criteria, so that's comforting in a way.

Hope that helps, know that all wood structures sell at a substantial discount, and really consider the termites. The good news though, if it was built in the 30's, who knows, maybe you have some great wood! Certain native woods in florida are actually pretty decent at resisting termites. Let us know how it goes, good luck!

Very relevant and well written article. I have a friend who is a multimillionaire and unfortunately in a sense that’s how he made it, a team will be assembled made of “door knocker” sales people and they get people new roofs by using insurance claims.

Even MORE crazy, and this is an important point, he told me it is one of the last UN-regulated places for pricing, meaning the roof company will charge insurance hundreds of percentage points higher in price and commission just totally working them over, where they sold that same roof to a private party for 15k they charge insurance 48k and pocket the difference, essentially.

In the Fort Lauderdale area, more than others in the United States in general, there are HUGE variations of insurance from very little space in terms of geography. This is because the intensity of hurricanes and storms has a lot to do with where exactly you are located. Are you close to the ocean?

Also, talking about the HELOC specifically, you may already know this but the insurance requirements are based specifically on your lender. Also, I trust you are familiar with the difference between a first and second position HELOC on the benefits and draw backs, something to consider!

Yikes. It sounded so much better the way the CPA explained it! Well that’s why I’m coming to you guys for advice too!

What I gathered from the CPA is that when you owe the IRS money you are required to declare it, but when the IRS owes YOU money it is at your discretion to declare. That’s why the IRS waives all the late fees and penalties when they owe you money I thought, because they only care when it’s the other way around…

So in other words, if you donate to charity, it’s optional to declare, but if you earn income, it’s mandatory to declare, I thought.

I guess what you guys are saying is that this may not be the case. So if you lost that receipt for a charitable contribution 8 months ago (hypothetically)- that would actually be illegal? Given your comments I will look into this a little closer, thanks.

Hi, I am trying to refinance out of a bridge loan and am pushing to meet the mark on income. My CPA suggested I use my W2 and my Rental Income and basically not claim much if any of the tens of thousands in expenses that I incurred in the Rehab process.

He says I will have to pay Uncle Sam a pretty penny up front, but that I can then take my 2 years of tax statements and get the refinance done. After the refinance is approved I can ammend the taxes to reflect my original rehab expenses (repairs etc.) and get a lot of my tax money back.

Does anyone know about this strategy? My family says it sounds like a questionable way to operate, and I agree it's not ideal for the long-term, but I just got started 2 years ago and need to find-or-figure a way out of this bridge loan. Any thoughts, comments, experiences??

You guys are the best!!!!

Very smart observation, people would be well advised to listen!! A few dollars worth of metal strips can save you literally thousands and thousands of dollars in insurance. Make sure the strips have at least 3 nails each or they wont qualify for the insurance discounts.

Also note if you are investing here that wind insurance for hurricanes can be very expensive sometimes depending on location, if you are serious about doing your due dilligance you should also get an insurance quote if you haven't already!

Good luck!