All Forum Posts by: Alexandre Marques dos Santos

@David Nacco

I do not. I count only bank/ investments/ real estate, those types of assets. Cars only collection i would ( price dont depreciate). Watches and rest i could if i had many, AND , would put a great discount.

@Brian Lucier

Well said. Some info came out after my thought. Tennant have a signed lease. It could cost more going to a court. I would still, in possession of the noticed by PM that contract had a wrong termination date AND the messaging text, try to negotiate a better “ cash for keys”, saying you have a case in court. Offering him a 1500/2000 for it.

Go to PM and ask reimbursement, after all they made a mistake. AND use your strategy.

In the end, CHARGE HIM EVERY PENNY YOU CAN from deposit when doing walk through after he delivers the key. After all he deserves it.

@Nicholas Brady

Not important if you ate smart, self learner and curious. You need to understand only few principles, some math calculations and more important than studies, have discipline

@Jonathan Yeh

My 2 cents:

Negotiate the purchase. Builders tends to like the assurance of a sell cause means less expenses with interest ahead. If 20 k below the market, check how much rent you would be making over next Y months ( while being built) that is what the discount should be ( considering net value- taxes, etc). Its all about cash flow!!! But i consider a new house better than older one, as you have some warranty. And check the quality /reputation of the builder, off course.

@Matt Lord

When you started to say buyers agent fee i thought you were a “ seller by owner”., with agent bringing a buyer to your home. Theres no such buyers agent fee in a regular purchase as she is making a % from sellers on the purchase.

Having said that i would walk away.

@Asia Jones

I am not sure here if you or prop management are the ones signing the lease. If you, not much can be done unless you have the amendment in place. Best you could try is negotiate with prop management for the potential loss.

I would stop trying to reach out to tenant and would address to buyer. Offer him to postpone the closing or just keep the tenant with the rent.

I would not pay him out on this circumstance. Rather would give him headache in more showings, specially on last month.

@Patrick McGowen

Most of the guys mentioned the basis. advantage? Not much, you could buy an umbrella insurance to cover for some of the risk LLC would be in. I believe the key question ( and i discussed a lot with my insurance guy) is: are your properties in perfect conditions and up to the codes? If so, risk is much lower. An umbrella would be enough, and should be much cheaper.

Also the alternative is to put other assets out of your spectrum ( opening a trust for example). That would minimize the risk as well.

@Alexander Ryan-Bailey

Numbers are reasonably. Explain a bit more the structure. I might be interested.

Looking to understand all risks of capital, as well as the back to back profits.

@Arthur P.

Dont look just the yields. Ppl are looking at the return they get in bank. I agree might not be the best, but as diversification, its worthy to get a 7% . 4-5% i would be out!

@Phillip Rosin

Hello, i just joined BP and found your question very interesting. I am sorry if many pointed to same of my thoughts. I didnt read all of answers:

To be precise in the answer i will have to ask you to check if all the loans ( student and car) allows you to pay down, AND, discount the interest charged from the principal. In other words, they have to charge only principal and not principal plus interest.

If thats the case, my answer is simple: PAY DOWN THE DEBT! That reason lies in 2 factors: 1) In REI you will be able to raise money at much lower rates: specially if you have a good money to invest ( as downpayment).

2) The effect of taxation: paying down the loan has an effect of an investment of higher return. Imagine for exemple you pay around 40% in income tax (rounded number). A 5% loan to match is equivalent to an investment returning about 8.2% ( where you would pay around 3,3% of it in taxes-all rounded numbers). Not many REI will give you a certain return.

If i remember well your student loan is around 55k and car 9.5k. If they charge principal only, You might need to disburse only 50k on both, giving u ability to invest 55 k and get loan to add. Remember you will have 550,00 per month to pay for it. And cost will be lower than 5%!!! Its a win win situation. If you dont find anything to invest in short term, your money was properly invested. If you find the financials will be better than what you have now.

Hope i was clear to paint the picture. Anything let me know

Rgds