All Forum Posts by: William Glass

Confirming the tax bill takes effect for 2018 tax year and not retroactively for 2017, Correct? I have seen all the details of the key changes but not confirmation on this point. I need to make educated decisions the next week and a half for 2017 taxes. 

@Dave Foster I can appreciate the diverse set of investments you've explored. Key West is a unique place with a lot of unique opportunities. I think that has been the hardest part for me also is figuring out where the opportunities in the market and then determine what would fit with my investing strategy.

I've looked at the AirBnB boats also out in Garrison and then some of the retail & restaurants littered along Duvall, White, & Green St. Prices have risen dramatically as I'm sure you know just like everywhere. 

I didn't realize you could 1031 boat slips & boats. That is an interesting thought and definitely will leverage that information. 

It's the same way you approach your business in general. How can I solve a problem for someone else? You hear this over and over from the most successful individuals in business and in life. Solve problems for people and you will make money. The bigger the problem the more money. 

Real estate is no different. As an investor you solve problems (whether you realize it or not). As a flipper you find unlivable houses and improve them to create a home for someone. As a landlord you provide a home for someone who may not be in a position to purchase or have no desire in owning a home but needs a comfortable, safe shelter. The most successful investors are problem solvers.

The first step is to do discovery. Understand why someone is interested in selling their property vs. fixing it and what their specific situation is. What are their needs and motivations that are unique to them? Obviously with Harvey & Irma you can make some educated guesses (no insurance, desire to move somewhere else, etc.), but ultimately you need to understand their situation and what they need, why they may want to sell, how you can structure a deal, and what the impact will be for both parties. 

Once you understand that you can then evaluate if there is an opportunity as an investor and how to best structure an offer that benefits both parties. There may be a great opportunity or not. Recognize that you are ultimately working with people and realize they may have lost everything. How you approach and ensure you are actually understanding what their needs are and motivations will enable you to ethically find opportunities. 

@Brit Foshee If the property is still available. I'd like the details as well. 

@Siuleym Yllarramendi Are you planning on flipping the house or renting it out? A contractor isn't going to contact you - so you will have to be proactive and interview them. Figure out comps in your area for both sales and rents so you can be informed of the best options. Where is your lot located in Fort Myers?

I purchased a lot in Morse Shores - The Alabama Grove Terrace Neighborhood back in February and interviewed a few builders. I found one that I like and had good pricing it was going to be about $75 sq/ft (this includes garage - which won't count for sales comps) about $160k for about $90 sq/ft which include everything from plans & permits to appliances and landscaping. I don't have impact fees though because there was formerly a home on the property that was taken down in 2008. 

I ended up having a better opportunity present itself so have dedicated my capital towards that project, but am now revisiting the build option. My strategy is to do a lease-option on the property. 

Also, if you let the contractors know you are an investor and using this a spec house you will likely get slightly better terms. 

@Krystal Thomas & @Dave Foster What's your investment strategy in Key West? I have family in the Conch Republic and see opportunities in the long-term rental market there for fix and rents.

I've also seen some family friends invest in commercial property and in boats (AirBnB just off the island). I'd be curious to hear what both of your focus has been in Key West. 

@Nathan Fesnak If you aren't already familiar with Cape Coral - be aware of the tax assessments that are coming in waves. Many lots and properties have already been assessed and the rest of the Cape the assessments will be coming the next few years. If you find some cheap lots do your due diligence. I was looking at building a spec home 3/2 on a piece of land south of the Caloosahatchee River a block off the river, but have paused that route at the moment for another deal. I did interview quite a few builders though and many of them are custom builders so unless you are GC and going to overview the construction - or partner with a builder - it may not provide great margins.

Additionally, we've had a very very heavy rainy season this year and while Harvey was hitting Texas we had our own storm front down here and there was sporadic flooding. Based on another hurricane brewing already in the Atlantic and how these cycles tend to happen every 10-15 years - I wouldn't be surprised if the next few years brought us more tropical storms/hurricanes so be cognizant of weather effects. Certain parts of the Cape may be more prone to flooding. 

@Dana Neal let me know if you find someone. I have my AL license and getting reciprocity with FL soon

I was shocked Elena. It is a shame that someone would advise a potential client to commit a felony to save a few dollars. That is not good business even if you disagree with the tax code or lending standards that is one thing. 

For investors out there if you have to potentially do something illegal to make a deal work, it is not a deal and you should move onto something else. Making money in real estate (or life) should never have you cross any legal or ethical boundaries. Once you are willing to cross that line you are in deep trouble.

Who do you have your 401k with? From my understanding, you can take a loan on the money in your 401k that is less than half of the current balance up to $50k whichever is less. You can still be with your current employer and they have options (at least Fidelity does) regardless if it is an investment or personal residence. As Dmitriy said you will pay interest on the amount you take out as a "loan" from your 401k so ensure you factor in those points as well. 

My 401k is with Fidelity and I have briefly looked into this option and it seems pretty straightforward. I'd speak with the company that you have your 401k with and understand how they structure their loans and what fees may be associated. I believe the Fidelity plan I have it is a small $100 or $150 one-time fee and rates are about 5.25% payback from your after tax earnings back to your 401k in addition to your mortgage.