All Forum Posts by: Steven Hamilton II

Case 1: Could have been already negotiated with the bank to that price.

Case 2: Some people just aren't bright. And the truth is most sellers in today's market think their house is worth more than it is.

The big question is if the property will appraise 6 months to a year from now for more than it is at now. I doubt you're going to find 100% ltv

He said cash flow, he did not indicate specifically profit.
I looked at it like this:
$1,000,000 / 12 months = 83,334 per month in cash flow.
3 bedroom SFHs in my area are running around 40-50k and rent 1100-1200/m
So, 83,334 / 1150= 73 (rounded up)
73 * 40 = 2,920,000
73 * 50 = 3,650,000

At least between there if you're look at my amounts as far as paying cash.

Joel,

I understood what you were saying here. And I will agree with you that those from different backgrounds have different tendencies.

Do you really have that question that often about your commercial listings?

James,
I'm sorry you took his comment so personally; however, demographic is the statistical characteristics of a population. Assuming he was delivering pizzas he had a fixed delivery zone of x miles around the pizza parlor. That was the location of the people, yes specific neighborhood might vary. However cultural background as well as social background are part of a demographic. Some cultures are raised to be more frugal. Race and culture are related. I have a question for you. How did stereotypes originate? They came from the sight and something that seemed statistical to the eye. A stereotype could also be called a tendency.
That topic aside.

Now I'm sure some investors may ask that as they want to know how to approach a building or an area. If an area is primarily Hispanic, you should know what you are catering to. If the area is Greek, then you should know what they are looking for. It doesn't matter if you are white, black, brown, green or blue. It is always good to know whom you are marketing to.

So the race/background situation is in effect true. Would you rehab a house in Miami, Florida the same as Chicago, IL? No. You want to target your market and the culture of the area. What about a north suburb SFR of Chicago the same as a south side tri-level? I may have an eye for Mediterranean themes; however, I can't even think how to suggest a house to a southwest style/theme.

Personally if I have a building that needs constant work I'd have no problem renting to a contractor/handyman; however, if they do not have steady income I may ask for another reference.

Also I won't rehab a rental the same as I do a flip.

I'm sorry to hear that, you could think small claims court, and hope for a possible wage garnishment. If I were you I'd just work on getting them out now, so you can stop wasting your time with their games.

Oh and for audit purposes most auditors will accept 50-80% of your cell bill as an expense unless you can justify on a bill by bill basis that your percentage of business use is higher.

Pretty much you're only options are 1031 or move into it for 2 years.

Joel, yes you can have your corporation deduct the vehicle and provide that to you as a benefit. Otherwise you may purchase or lease the vehicle and deduct it based on the mileage % that is business versus personal. You may also deduct any finance charges etc that come about as leasing and purchasing the vehicle.

Homer, you're wrong. It is on a case by case basis. If you paid it and can prove it they will usually allow it. They will just slap you with a penalty for failure to file an information return. You don't want to go into that area. I have an audit that I'm handling at the moment with this issue. Its not pretty.

I'd look at another property either find one you can pay that in cash for, or if you can finance it, spread it around, but don't over extend yourself