All Forum Posts by: Bryan Martin

Quote from @Max Lambert:

What is a BURRR? Is there a legend somewhere for all the other acronyms?  There are several in some of the posts I've read and I am quickly Today is my first time in this forum here and not knowing the lingo, I get lost pretty quickly!  TIA!

Here's a list that you may find handy.  It's not all inclusive, be should be a good start.

1. REI - Real Estate Investing: This acronym refers to the practice of investing in real estate to make a profit.
2. ROI - Return on Investment: This acronym refers to the amount of money an investor can expect to earn in relation to their investment.
3. CMA - Comparative Market Analysis: This acronym refers to a report that compares the prices of recently sold properties in a specific area to determine the value of a property.
4. NOI - Net Operating Income: This acronym refers to the income a property generates after operating expenses are deducted.
5. CAP - Capitalization Rate: This acronym refers to the ratio between the net operating income and the property's value.
6. LTV - Loan-to-Value Ratio: This acronym refers to the amount of a loan compared to the value of a property.
7. FHA - Federal Housing Administration: This acronym refers to a government agency that provides mortgage insurance to borrowers.
8. PMI - Private Mortgage Insurance: This acronym refers to insurance that protects lenders in case a borrower defaults on a loan.
9. P&L - Profit and Loss Statement: This acronym refers to a financial statement that shows the revenue and expenses of a property.
10. DSCR - Debt Service Coverage Ratio: This acronym refers to the ratio between a property's net operating income and its debt service.
11. COCR - Cash-on-Cash Return: This acronym refers to the annual return on investment, expressed as a percentage of the total amount of cash invested.
12. BRRRR - Buy, Rehab, Rent, Refinance, Repeat: This acronym refers to a real estate investing strategy that involves buying a property, rehabbing it, renting it out, refinancing it to cash out, and repeating the process.
13. HML - Hard Money Lender: This acronym refers to a private lender who provides short-term loans secured by real estate.
14. MLS - Multiple Listing Service: This acronym refers to a database of properties listed for sale by real estate agents.
15. ARV - After Repair Value: This acronym refers to the estimated value of a property after it has been repaired or renovated.
16. PITI - Principal, Interest, Taxes, and Insurance: This acronym refers to the monthly payments a borrower makes on a mortgage.
17. HELOC - Home Equity Line of Credit: This acronym refers to a line of credit that uses the equity in a borrower's home as collateral.
18. RTO - Rent-to-Own: This acronym refers to an agreement in which a tenant rents a property with the option to buy it later.
19. NNN - Triple Net Lease: This acronym refers to a lease in which the tenant is responsible for paying all operating expenses of a property.
20. NDA - Non-Disclosure Agreement: This acronym refers to a legal contract that prohibits the sharing of confidential information between parties.

Quote from @Tomas Valladares:

Hi BP community! I'm looking for some guidance on house hacking. 

Background:
I'm in the DFW area and preapproved for 300k at 7.25%. The houses in my area that could work (3bd 2ba) are at the bottom of the market around the 260k-280k range. Putting 20k down, my expected housing payments are going to be around $2400 a month. I'm estimating $1800 in rental income from three roommates so I will be paying ~600 a month. I am currently paying $600 a month in my current apartment.

Question:

With current interest rates, I am not able to lower my housing payment below what I currently pay in rent. However, I am able to get myself into a house where I will be able to pay rent back to myself and build equity, likely appreciation, landlord experience, and increase my quality of living. Does this count as a house-hacking win? 

I know most people try to lower their housing payments to below what they would pay in rent but that's not going to be possible in my case. Also, I do not expect I will be able to have positive cash flow after moving out unless rents in my area increase and/or interest rates fall.

Thank you very much for any responses! Please let me know if you'd like any other details.

Definitely a win.  Obviously, everyone would love to live in their house for free or get paid for it, but it's not always possible depending on your market and the economy.  The question I have: is the house you're looking at more desirable to you as a place to live even with a roommate?  That would be the deciding factor for me.

Quote from @John McKee:

A lot of us our sitting on the sidelines as the market has peaked and interest rates are driving us crazy.  Personally I'm still hunting for deals but realize this is going to be a difficult year to invest to make the numbers work.  I'm transferring capital into a 3 month CD for now as I continue to look at all asset types including non real estate assets.  

I left my W-2 and bought a small business last year.  

Lately, I've seen a lot of real estate investors asking what qualities to look for when hiring a CPA on Bigger Pockets and hope this post will provide some insight into what to look for whether you're looking for a CPA local to your area or a virtual CPA.  If looking for a CPA this tax season, here are the ten areas I recommend looking into.  Some are essential (tax knowledge), some aren't necessarily essential, but looking for them will likely give you a much better experience (good chemistry, certain credentials).

1. Real estate investment experience: A CPA who has worked with real estate investors can provide valuable insight into the tax implications of real estate investments. Although being a real estate investor isn't necessarily required, there are a lot of benefits to hiring one that invests in real estate themselves.  Sample question: Can you tell me about a time when you helped a real estate investor save money on their taxes?
2. Tax knowledge: Look for a CPA who stays up-to-date on current tax laws and can help you minimize your tax liability. Sample question: How do you stay current on changes in tax laws and regulations that impact real estate investments?
3. Communication skills: A CPA who can explain complex tax concepts in plain language will make tax time much easier and a better experience. Sample question: Can you explain a complicated tax concept to me in a way that's easy to understand?
4. Availability: Look for a CPA who is responsive and can answer your questions and concerns in a timely manner. Don't expect to hear back within 15 minutes on a Sunday at 6 pm.  But also don't accept not hearing back due 15 days.  Sample question: How quickly can I expect to hear back from you if I have a question or concern?
5. Proactivity: A CPA who can identify tax planning opportunities and strategies to minimize your tax liability can save you a lot of money. Sample question: Can you give me an example of a tax planning opportunity you identified for one of your real estate investor clients?
6. Attention to detail: A CPA who pays attention to details can ensure that your financial statements are accurate which is viral fire your long term planning and if Uncle Sam's IRS agents give you a visit.  Sample question: How do you ensure the accuracy of financial statements?
7. Tech-savvy: A CPA who is comfortable with technology can their and the client's job much easier. Sample question: What types of software tools do you use to streamline accounting and financial management tasks for your clients?
8. Good references: Look for a CPA with positive references from other real estate investors or people that you trust. Sample question: Can you provide me with references from other real estate investors you've worked with?
9. Professional credentials: Look for a CPA with relevant professional credentials, such as a CPA license or an Enrolled Agent designation. Sample question: What professional credentials do you have that make you qualified to work with real estate investors?
10. Good chemistry: It's important to choose a CPA that you feel comfortable working with and who shares your financial goals. Sample question: How do you approach building a good working relationship with your clients?

Wrapping up with one last piece of advice: Don't be afraid to shop around until you find a CPA who meets most of your criteria.  Outside of your spouse/partner and your doctor, your accountant probably knows more about your personal life than anyone else.  Finding one that you can have a long term relationship with and grow with together is a very valuable thing and shouldn't be taken lightly.

Quote from @Greg Scott:

The fact that you have rentals in different states is a minor issue.  Most state returns start with Federal AGI. 

The more important thing to do is find a CPA (not just a tax preparer) that works with real estate investors.

Great Scott Greg Scott! (Sorry, I couldn't resist)

But, this is exactly right.  I'd go to the BP Directory Sticky'd at the top of this forum and see if you connect with any that have any openings and that you like.

Quote from @Stacy Cruz:

I’m a new business owner and I’m looking for a new tax prep company for my business. I currently have legal Zoom and I been having a bad experience with them. The process of filling my taxes have been prolonged due to their errors, I always have to wait a week or two for a consultation, the deadline for filing is very close and I don’t like that I speak to a different person every time. Are there any other companies that have tax advisors who are more reliable and offer more personal one on one base relationships. I’d like to just have the one person I talk to for all of my concerns

BP posted a Tax Professional Directory that is Sticky'd at the top of this forum.  Lots of great accountants on there.  I'd call them within the next week or so unless you want to file an extension as most accountants are slammed at this point.

Quote from @Katie Balatbat:

@Glenn Sanders

Feel free to message me for CPA referrals in San Diego if you would like.  There are also several talented CPAs on these forums who may be familiar with CA laws as well.

Echo what Katie is saying.  Several talented CPAs on the forums.  Reach out to a few Ave see if you click with any that have availability.

Quote from @Michael Plaks:

Let's define "cost-effective."  I know you mean cheap, and $900 for a set of professionally prepared partnership returns, Federal and state, is super cheap already. Anybody who is willing to do it for less would have a question mark in my book as far as their competence and experience.

Your only other alternative is to self-prepare, paying about $200 for one of the many tax software choices. You will save a few hundreds, however next year, when you sell the property, you will not be able to avoid getting professional help. And whoever prepares your next return will very likely be unsatisfied with your initial one and will want to make corrections, negating your first-year savings.

Partnership with 6 partners should hire professionals and plan for the related costs, IMHO.

Agree 100% with Michael here.  Too much risk to worry about saving $150 per partner.  If you use the software and mess up, it's not only going to need to be fixed on one person's tax return, but six.

Quote from @Robert Atwood:

Hello Everyone,
I just started listening to the BiggerPockets podcast about 2 weeks ago and have listened to the 10 most recent episodes.
I'm currently reading Brandon turner's, "The book on rental property investing."

Been hearing so many great things about this Forum and want to start connecting with people around the area and take any tips one might have.
For some background, I'm 22, located in Churchville, NY (Rochester Area), living in an Appt with my girlfriend, working a W-2 job making between 55-65,000 a year before tax. I have a keen interest in the opportunities rental properties offer and would love to start conversing about how to enter the real estate realm properly. Please don't hesitate to reach out, I'm very curious and want to get a jump start on this journey!
Really looking forward to meeting new people and developing lifelong connections.

Good luck on your journey.  Real estate is a powerful tool.  I would recommend starting the BP podcasts from the very beginning and working your way forward.  It's very interesting and somewhat inspirational to hear how Josh and Brandon go through their journey and experienced exponential growth.  Also, a ton of amazing guests.  Some things and references will be dated here and there, but for the most part, the content is timeless.

Quote from @Matt Ten:

I'm looking for a virtual bookkeeper who is familiar with best practices with house flipping, multi-family and short term rentals. I currently use quickbooks but am interested in optimizing my process and offload some of the manual work that I've been doing. Any recommendations?

Lots of qualified bookkeepers and accountants on here.  I would recommend finding a firm on here that will handle both your bookkeeping and your taxes.  It helps with the planning process, will end up being cheaper and likely saving you money on your taxes.