All Forum Posts by: Travis Watts

@Anthane C. Richie Sr. Good question. When I used to have a single-family portfolio that I actively managed, I would use techniques like this; however, I would start the conversation with my tenants many months prior to renewal. I would ask my tenant something like "What are 2 or 3 items you would improve, add or upgrade to the home to make it more accommodating to you?" I wouldn't mention anything about renewals or rent increases at that time. To my surprise, the tenants would often come up with something I didn't think of such as "We would add a ceiling fan to the master, or upgrade the outside lighting". You might find that your tenants don't even care about the older fridge and you might be able to get away with replacing cheaper items, at least for the time being. 

I would make a note of these requested items, then bring them up a couple months before renewal and say something like "I appreciate you all very much and I thank you for always paying on time, I remember you mentioned a few items you would like to have and I would like to make those improvements to the house (adding the ceiling fan and upgrading the outside lighting). Please note that the property taxes, insurance and HOA have all increased about 3% since last year (if this is true, of course). The new rental rate starting on ____ will be $30 higher per month as a result. Please let me know if you have any questions and thank you.

@Jonathan Trimboli Good question! These days you can run nearly any software on a Mac. You can run Microsoft Office and Microsoft Operating systems on a Mac. I still believe Macs are the highest quality product you can buy in the computer world. I stopped using PCs about 12 years ago and I believe that was the best decision I ever made in the technology world. Best of luck!

@Jake S. Thanks Jake. Have you invested in Triple Net Leases? I do have an interest in learning more about that type of investment. 

This is a very debatable topic but...I have a self-directed IRA. I have only used that IRA to invest in private notes and hard money lending because those types of investments produce "interest" income which adds to my ordinary income tax bracket levels. On the other hand, apartment syndications have tax advantages such as depreciation that lower my taxable income brackets. My thought has always been, why place a tax-advantaged asset (such as an apartment syndication) into a non-tax advantaged account (such as an IRA). Wouldn't you be throwing away tax advantages since a traditional IRA is taxed at ordinary income tax rates (when the funds are pulled out)? Lately, I have been hearing that more and more people are using their self-directed IRAs to invest in real estate syndications. I'd love to get your thoughts on this. Thank you for the comments.

There are all types of real estate investors. Some that love to be actively involved and others that prefer the "real estate" asset class, but don't have the time to commit to it. I started off as an active real estate investor doing fix and flip and single-family buy and holds and vacation rentals. Over time it became too much of a time commitment and I wanted to pursue other full-time ventures in my life. I realized that I didn't have to "give up" real estate or sell everything to become a 100% passive investor. I transitioned into multifamily syndications for the past several years in order to achieve the passive status I was seeking. I'm curious if there are other strategies or techniques to consider for someone who wants to be a passive real estate investor. Thanks for your comments!

@Justin Wotring Good question, that all depends on the individual. What I personally did was divide up my investable net worth and invest in cashflowing multifamily syndications at the minimum investment per project (usually 50k per project). The goal was, and still is, to have diversification, multiple income streams, 100% passive income, no active management or time commitment and I get to learn a lot from different syndicate groups, 14+ and counting...best of luck!

@Juliette Lerner Good question! I recently had to switch CPAs because I outgrew the knowledge of my previous CPA. It is unfortunate but the takeaway is that some CPAs specialize in a particular niche. I recommend seeking out a CPA that specializes in what YOU do. I used to only pay $300 a year for my personal tax return and $325 for my business return. Then I found a CPA who specialized and helped real estate investors minimum taxable burden (legally) and saved me roughly $30,000 in taxes over the past three year's returns. My new CPA charges $1,000 per return vs $300. Is it worth paying 3x the amount I used to pay? Every penny. A lot of firms will look over your past 3 years of returns (for free) and let you know if they can help you. Best of luck! 

@Aaron Bonne

Goal: $50,000 per month

Vehicle: Real Estate Syndications

Current: $____ per month between 14 syndication investments and some note-lending funds. I suspect the reason this post didn't get a lot of response is because this is a very personal subject matter for a lot of folks, but I'm happy to contribute and let you know I'm well on my way to meeting my goal! Best of luck to you

Hi Nathaniel, I used to work a 2 and 2 schedule in Colorado as well, oilfield? I had a similar dilemma years ago and transitioned into investing in apartment syndications in less expensive parts of the US. Primarily Texas and Florida, but many other states as well. 14+ syndication and counting. Best of luck. 

@Tony Robinson Happy to share. Rather than spending my time managing tenants and property managers these days...I spend a lot of time vetting out syndicators. I always look for track record, reputation, referrals, deals that have gone full-cycle, monthly reporting, the ability to visit the property and/or offices of the firm (if it's a fund). I have found many deals through an accredited investor group that I am part of in Colorado and the others mostly through word of mouth referrals either through investor groups, BP, meetups or via friends. At the end of the day, I look at the team behind the deal much more intensively than the deal itself. With that said, the deal is obviously important too. Hope that helps!