All Forum Posts by: Shane Humes

According to my lease agreement, I (the landlord) provide the tenant a washer and dryer. I recently had to evict a tenant, and, during the time I was waiting for him to move out, he sold the washer and dryer.  I understand that if my tenant stole my washer and dryer, that is not a crime because it is a civil matter and I must file a cause for damages and money owed.  But is it a crime if my tenant sold my washer and dryer to someone?

Thanks for your responses.

Shane

Thanks for the response Dan.

I have an LLC for another business, and that LLC is able to transfer money to me personally in two ways: Payroll and Distribution. If it's considered payroll, then I have to pay FICA or payroll taxes. If it's a distribution, then I have to personally pay taxes on that as personal income. Now this LLC has an S-Corp designation, so it might be different, but that is what my accountant told me (of course, I could have misunderstood).

That is why I am asking this question.

To get started in real estate investing, I am creating an LLC. In order to start, I will need to give my "LLC" self some money from my "personal" self for down payments, rehab costs, etc. I would like to eventually pay my "personal" self back. How can I do that without paying payroll taxes?

Thank you for the response Joe.

You provided a lot of different scenarios, and I'm actually more confused by your response.  I was hoping for a range of values like 50% - 75%, or something like that.  

For example, If I plan on being in from the beginning and holding it long term with a partner for passive income, if we will be investing in single family homes or small multifamily, so the amount of financing will be around 100K and a down payment of 20K, what percent would you expect if you were me?

I am new to real estate investing.  I am in a different position than most investors, in that, I have more capital than time.  This is a good scenario for a partnership, but I'm not sure what the standard is for the split. 

If I am in a partnership with one other person to buy and hold single family and small multifamily (2 - 4 units) properties, and I provide the financing along with all of the down payment, and my partner does the hustle work (finding properties, managing properties, etc.), what is the standard way to structure the division of cash flow?  

Thanks for any responses.

Shane

I am a new investor, meaning I am in the education phase and have never purchased any rentals.  I read constantly about real estate, both on the Bigger Pockets forums and books.

Everywhere I read that in order to intelligently invest in real estate, you must know the market in which you are investing.  What are the best resources to research specific markets?  What are the best tools to determine emerging and declining markets?

How do investors learn that new companies are investing in certain markets, and conversely, when companies are pulling out of a given market?

Thanks for any responses.

Shane

Thank you so much Roy.

I am in the process of learning as much as possible before I take the plunge of my first rental purchase.  I am practicing evaluating potential rentals, and refining my criteria.  Your information helped a great deal, and I really appreciate it.

I am also new to real estate investing, and I would also like to get business cards.  I was going to include my name and the title "Real Estate Investor."  Is that too pretentious?  Or is it not that big a deal?

Thank you for your response Roy.  I have two questions:

First, I don't know what you mean by "you should not pay the Vendor for the effort you will expend to realize that potential."  Can you explain that a little more?

Second, if you buy a property and it is 100% occupied, and you have some ideas for adding value that will require upgrading some things, should you wait until their lease is up to do those upgrades?

I really appreciate your responses.  It made me think a little deeper.

Shane

I am a brand new investor.  I have not purchased anything yet, but I have discovered a few opportunities. 

My minimum criteria is $100 per month cash flow, and a cash on cash return of 10% annually. I have plugged in the numbers for one specific property, and the cash flow meets my minimum requirements, but the cash on cash return does not because the minimum down payment banks require. I have talked to every bank in my area, and they all require 25% down. Since I am new, conventional mortgage is the only type of lending I am familiar / comfortable with. I looked at the BRRRR strategy, but I'm not certain a conventional loan refinance would cover everything.

This brings me to my questions.  As experienced investors, would you proceed knowing that the cash flow is there, but without the desired Cash on Cash return?  As experienced investors, what alternate financing processes would you use?

Thank you for any responses you provide.

Shane