All Forum Posts by: David M.

@Chris Seveney

I'm good.  Might have to do with being in NJ --- ours are already supposed to be high!!  Actually, my remaining rentals dropped 10% because they just reassessed this/last year.  So, that worked out well.

@Allison Levine

Depends on your strategy and goals.  Do you want to be a landlord?  how are you doing being a landlord?  Obviously, if its stressful, unnerving, whatever, then sell.

This doesn't seem to be your investing strategy so you don't have to scale up.  You should note that people do lose money investing in real estate.  Its not always all roses...

How long have you been renting this property?  What is bequeathed to you?  I ask because sometimes the tax liability isn't always that bad.

I generally consider it better to sell/1031 to scale up instead of cashout refi.  In the latter you are paying for your own money.

My post here:  https://www.biggerpockets.com/forums/48/topics/1169308-equity-rich-need-advice?highlight_post=6659747&page=1#p6659747 kinda shows that and gives you a real life example where its cheaper to sell than refi.

Hope this helps.  Happy to chat.  Good luck.

@Michael Moreno Its not really "losing" money.  Its a matter of what is your strategy and goal.

If you really think that house free and clear will cash flow enough in 12 years (after all the income and expenditure risks) to make you financially free --- well that's your plan.

I think most of us are saying its just pretty gutsy at your age.  Also, there is so much that can happen over the next 12 years.

@Jim Unsworth That's completely correct.  While Federal law prevents prepayment penalties, the lender and loan officer are on the hook if your loan is extinguished in 6 months (tehcnically 6 payments).  Remember, your loan is sold off to Fannie Mae.  The profit that the lender makes on the sale is contigent that the Note is alive for 6 months (same for auto loans for some reason).  Since they can't charge you, the lender's money is clawed back AND so is the loan officer's commission.  So, that's pretty rotten.

No reason to mess around with somebody's commission.

6mo can go pretty quick...  Remember, technically I believe its 6 payments and its when the closing occurs (which is when the Note is extinguished/paid off).

@Bandu Khote you should double check.  It might just mean that your current company doesn't want to insure anymore for you.  Or, perhaps the agent is looking out for you as it starts to seem that you are running a business and perhaps should get more / different coverage.  Either way, you should ask for clarification.

@Michael Baum well, that seems rather rude..  oh well, thanks for your help.

@Rose Ganor No... you pretty much got it...

You could try some of the "influencer's" techniques, and similar techniques taught by real estate investors.  However, they generally have more risk.

Also, because some technique worked for a person, doesn't mean it will work for you...

Investing is done with resources that you have.  Unfortunately, if you don't have the resources, its not very possible.

here is my sort of "truth vs. reality:"  I think we'd agree that its true if you were a professional athletes you make lots of money (male more so than females, but that's not the point).  However, the reality is neither of us is going to be a professional athlete.

As as you mentioned, its a "dream."  There is a balance between going for your dream, being supported to chase your dream, and understanding reality.

Sorry.  Good luck.

Devil is in the details…

@Chris Martin So, if I am understanding these charts and perhaps your point, its really the credit cards and other revolving plans that have increased?

Otherwise, I get what you are saying..  For example, sure there is sa record AMOUNT in mortgages, but probably because of the low rates, the actual cost/payments for this borrowed amount is really low.

The only issue being shown here is the credit card debt...

@Mahesh Karthik Duraisamy

For asset protection / corporate veil of your LLC, you really should get the commercial loan. From this layman's perspective, moving Title back and forth is make the LLC look like a alter-ego. Also, you don't want to co-mingle funds --- so, which bank account should be making the mortgage payments? Think about that --- not the LLC since its not it's loan... Hmmm...

No need to be so afraid of a credit check.  It only impacts your credit a little bit, and it recovers quite quickly.

Do it "right," and get the commercial financing for the LLC. Also, I THINK doing so doesn't tie up your personal credit, e.g. if you were going to buy a house for yourself.

Hope this helps.  Happy to chat.  Good luck.