Real Estate Investing, Accounting, & Tax Issues

Lessons Learned from Investing in Real Estate

My wife, Tiffany, and I started in investing in real estate in 2010.  On November 8, 2012, we formed Wright Holdings of Shreveport, L.L.C. (WHS) to manage several investment properties located in Caddo Parish.  Beginning with a single property, Tiffany and I have steadily grown the company to include two residential properties and a commercial-unit office space.

 WHS-Logo

History

Following the birth of our second child, we purchased a modestly larger residence in South Shreveport to accommodate our growing family.  In lieu of selling our “starter” home, we arranged to lease the property to a neighbor that was simultaneously vacating their residence located across the street.  This somewhat serendipitous course of events resulted in our entry into the real estate industry.

Rental Real Estate        Rental Real Estate - Prop. Mgmt.

Approximately one year following the formation of WHS, Tiffany and I were informed of a family member in a similar situation to the one we found ourselves in the year prior.  The couple had purchased and taken up residence in a new home, but they had been unable to sell their recently vacated property.  Not interested in transforming the property into a rental unit, our relatives desired to sell the house in order to relieve themselves of the added financial burden brought upon by an additional mortgage.  Having been made aware of our recent entry into residential real estate, Tiffany and I were approached by the motivated sellers with an interesting proposal:  Purchase the property “as is” and at a cost that would alleviate our aunt/uncle from debt with the freedom to manage the investment however we chose after closing.

Caddo Realty Partners LLC crop

At this point in time (January 2013), I was a novice real estate investor with limited experience evaluating, managing, and selling property.  As such, I sought the guidance and advice of a friend with experience as a real estate agent in the Shreveport-Bossier market.  Together, we evaluated the proposition and decided the property could be acquired, updated, and promptly re-sold at a gain (i.e., flipped).

DCW Properties LLC crop

In May 2014, Wright Holdings of Shreveport, L.L.C. partnered with Cory Wright in a joint venture to acquire a single-family residence on the verge of the foreclosure.  The limited liability company of DCW Properties, L.L.C. was formed for the purpose of purchasing a distressed property, performing substantial remodeling, and holding as an investment to later be sold and/or leased.

Again, I served as the Tax Matters Manager in-charge of setting up the company, maintaining the books and records, and filing tax returns.  Ultimately, I became the Managing Member of DCW Properties, L.L.C. charged with the responsibility of winding-down the affairs of the company.  In this role, I carried out additional functions of the liquidator, responsible for dissolving the company, paying its debts, and distributing/assigning its assets.

Present Day

Currently, Wright Holdings of Shreveport, L.L.C. owns two (2) residential rental properties in Shreveport’s University Terrace and Broadmoor Terrace neighborhoods.  In addition, we recently added a commercial office suite located in the Fern Avenue office park between East 70th Street and Bert Kouns Industrial Loop.  My wife and I actively manage our properties, which involves (among other activities):

  • Tenant screening and selection,
  • Lease negotiation,
  • Collections,
  • Property maintenance, &
  • Accounting and tax preparation.

7330 Fern Avenue Suite 601

Professional Services – Real Estate Related

See my YouTube video below for a brief explanation of professional services I provide individuals and businesses involved in real estate.

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