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This Covid virus has caused some changes in real estate, tenant relations, unemployment, the economy and so much more. And it’s not over yet!
I invited Prentiss Yates to do a Coaching Call on Tuesday, July 28th to talk about SAFE ways to proceed as an investor in these uncertain times. Learn what you should and should not be doing now and how to plan for the future.
When we had the big real estate investing crash in 2008, a lot of investors lost everything and filed bankruptcy. But other investors made a fortune during that same time. Learn how you can come out of this Covid mess on the winning side and avoid the problems that so many faced back in 2008.
Prestiss is a well respected and a long time student of Jack Miller. He’s one of the original Mentors hand picked by Jack. Over his many years in real estate investing, he has developed creative tactics to invest smarter. When Prentiss talks, you want to listen!
DAY: Tuesday, July 28th
TIME: 7pm Central (8pm Eastern, 6pm Mountain 5pm Pacific)
ACCESS CODE 120440#
Log in ONLINE HERE
Great call! Can’t wait to hear from Prentiss. This is unprecedented and it looks like it will follow the cycle of 2008-2009. Real estate doesn’t seem to be taking a hit yet, but it will. I am looking to buy houses, but only very carefully. Master lease is better but a good property at the right terms, still seems to be viable. Thanks for putting on this call!
Hello. When will this coaching call be put up for those who missed it?
Hello. the same question with : When will this coaching call be put up for those who missed it?
We will have the replay available today. I will post a link to it when it is available.
Please forward link to replay, when available. Thanks
Dear Jackie, do you have the link available yet? pls send. thank you.
I thought the replay got posted a few days after the call. I will check in to it in the morning and make it active and post a link here.
The replay of last week’s Coaching Call with Prentiss Yates is available. Prentiss has 30+ years experience investing in real estate. We talked about how the Covid Virus has caused millions to be unemployed and not able to pay their mortgages or rents. Learn how this will affect the economy and how to be prepared for the problems and opportunities ahead
Jackie thank you for this call and thank you Prentiss. I have the same fears/feelings about what is coming! The flood of money from Washington, the shut down and slow or never reopening of so many businesses, inflation, state and especially local governments trying to fund their budget shortfalls by searching and squeezing every dollar from real estate (taxes, fees, extra charges etc.), violence and unrest that is not being curtailed, but rather is being permitted/promoted. It as you said, we have never been here before. But it certainly feels as though there may be a once-in-a-life-time event coming. Thank you both!
The pandemic is a once in a lifetime event. Governments worldwide are doing what they can to prop up their economies. But I think the US will be in for a rude awakening in 2021 when 50 million people are still unemployed, many businesses fail, and foreclosures and bankruptcies are on the rise.
When we had the real estate crash in 2008, some areas saw real estate prices go down 50%. It could be worse this time because the pandemic has caused more chaos and havoc on the economy. I hope I’m wrong. But it looks like it is headed in that direction.
The call gives recommendations about how to protect yourself and prepare for what’s coming.
I listened to the replay, but I could not understand the first option deal with the Doctor. He said something about purchasing a 150k house, where he puts all the money, but I have an option of $75k, we share the upside… It was not very clear.
Could you explain that a little better? Perhaps, in a newsletter to all listeners.
Like Leopoldo I listened to the re-play of the Prentiss Yates coaching call.
I have the same question as Leopoldo. Could you please explain Prentiss’ example of an option deal with a doctor.
Sounded like: (a) ARV $225K; (b) Prentiss finds the deal and negotiates a $150K all-cash purchase price; (c) Doctor completely funds the $150K purchase; (d) Doctor owns the property 100%; (e) Doctor gets tax benefits of owning the property 100%; (f) Prentiss gets an option to purchase 50% ownership for $75K; (g) Prentiss manages the rental property.
I hope I got the details of the option deal correct. Prentiss stopped there. He did not explain: (a) How the cash flow of the rental is split?; (b) If the doctor receives payments for his $150K cash investment?; (c) Is Prentiss having to bring $75K cash into the deal to buy-into his 50% ownership?
Please explain: (a) The income streams for Prentiss and the doctor?; (b) The different exit(s) for Prentiss and the doctor?; (c) What happens when that ARV of $225K today is $160K three years from now?
Excellent example on how someone with no cash can use options to put a deal together with a private money funding source.
Thank you, Donn
Here is how it works: I find the house and manage it. Then doc buys the house for cash, It is placed in a Land Trust doc having 100% Ben Interest. I have the option of buying 1/2 for 1/2 of the purchase price. This is set up for 10 years. The doctor gets all write offs, , maintenance, depreciation, taxes, insurance etc. I get a management fee (the rent) Doc DOES NOT income he wants deductions, Let’s look at a 150k house, rent $1500
Depreciation = 5048
Taxes = 2000
Insurance = 750
Maintenance = 600
Management Fee= 18000
Total for doc= (26,398) at 30% (tax bracket) =7919.40 tax deduction which is about 5% ROI without appreciation
What do I get? All rents $18,000 Which is used to buy into option, I do not have to pay 75k all at once
What happens if market drops. No Problem we are long term holders
Thank you Prentiss for your quick and insightful reply.
Hey everyone, do you see how you don’t have to OWN a house to make a lot of money with it!!!! During the call, Prentiss taked about finding doctors who would be willing to put up the cash to buy the house in exchange for all the write offs. Who else can you think of who might be willing to do this??
Hello and thank you, everyone, who got input in this discussion, I learned a lot from it.
To make it more clear for me, I have a few questions:
– would someone let me know, who is paying Property taxes, insurance, maintenance … If a doctor does, can he do it without getting any rental income from the property?
– when we sell the property for let’s say $300,000 in the future, how the funds will be distributed?
-how my rental income will be taxed?
-After the house sells, the doctor will have capital gains as well as depreciation to be taxed? Am I right? How does that work?
Thank you kindly for the help I need in advance.
Property taxes and expenses are paid by the doc A simple way to look at it is this suppose all expenses are 6,000 and all rents collected are 6,000. The doc pays you as manager 6,000. You handle everything, all payments etc and invoice the doc. He would get a 500 invoice every month. He made 0 but has a write off of 12,000. You do not have rental income you have management fees, There is a basis in the house and you will own half as soon as you give the doc 1/2 of the purchase price. On sale long term capital gains would apply BUT I am a long term holder I don’t care about taxes because I have no idea what they will be. Also there are ways to postpone taxes
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