All Forum Posts by: Todd Rasmussen

@Gurjot Grewal

You need to stick with it. Having a tolerance for a bigger rehab will result in a better likelihood of finding a BRRRR project, however your expense projections appear aggressive already. I would definitely not lower your cash flow requirements because of this.

Ask an experienced REI what kind of REI they are. Chances are they will not give you one answer. This is because if you are only using one template, only one type of property will fit. Bad BRRR's can be great flips; don't limit yourself to one approach.

@Sara Campbell

We'll be at meetings starting March 2023. Moving to town.

@Asa Aldridge

The chances that you NEED an LLC are probably zero. At this point it is most certainly just a distraction. Any LLC other than a single member LLC will have negative tax consequences as well. Talk to a CPA and a civil litigation attorney after you make sure you get or confirm you have a liability umbrella insurance policy.

@Moises Guerra Garcia

Sounds like you and your agent do not have compatible expectations. Have a conversation about expectations and if the arrangement isn't working for either of you, go get a different agent.

@Angie Nasrallah

Take the loss now versus a bigger one later. Sell the house for what you can and make good on your debts ASAP.

@Michael Creamer

You can write off expenses for rental property as a sole proprietor and should be filing IRS schedule E. The net of having a business entity usually is additional costs and not savings. If you have an exigent circumstance you should talk to a CPA before making any moves.

@Shella Stephens

As the borrower, you'll be in breach of contract with your lender. In the loan docs you pinkie swear not to do it. When we buy subject to, we have the seller sign a contract that they know by doing this they are breaching their contract with the lender.

@Julie Marquez

If you have dozens of accounts and LLCs for 25 properties, does that mean you have one company and one account for each? If so, you are a glutton for punishment!

We have 22 and are just getting ready to start our second LLC. We've consulted with a couple lawyers and there is a famous case out of New York where a cab company structured every cab as its own LLC to protect the cab company's liability. The case law that came after they tried to isolate all of the assets of the different LLCs from the cab company was that if the LLC's were engaged in similar businesses with the same ownership then there were essentially the same company. I imagine you are set up much the same way and your network of LLC's is not the impenetrable fortress you were told it was. I'd consult with a lawyer and a tax professional and consolidate unless you are slow playing us and the 25 properties are apartment buildings with different partners.

We have two bank accounts (could be one) and one LLC for our properties (soon to be two). I use Excel to track depreciation and Stessa for all income/expenses. Stessa is currently free but they were bought by roofstock. So far all of their monetizing on the platform is through advertising.

@Julie Marquez

You need to reframe how you think about insurance. You should not want insurance for a $5,000 water claim. You should be insuring for a million dollar liability claim. Self insure the small claims by choosing a high deductible. On top of everything else you need to know to be an investor you need to be in the 95% percentile when it comes to insurance knowledge too. You need to know exactly what is covered, how much it is covered for, and what perils it is covered from. If you don't have bank loans, you can absolutely self insure, but unless you are sitting on a million bucks, this strategy is high risk and probably irresponsible towards your tenants.

Insure with a mutual company. If there are excess profits at the end of the year, you get a refund.

@Bret Halsey

The easiest way to explore markets is to research turnkey companies. Many provide their research free to potential customers as part of their sales strategy. If you live near one, you can usually get an okay spread of finger foods and a cup of coffee out of going to one of their presentations on a market area as well.