All Forum Posts by: Blake Harris

Many contractors will give you free estimates. It isn't the best business practice to wholesale and "ballpark". If you aren't bringing out an actual contractor to get an estimate, and you aren't 99 percent sure of the numbers yourself, you are going to end up with unhappy investors. Some may buy a deal from you only knowing the numbers you provided. Even 5 thousand off could be profit versus a money pit, depending on their business plan they are implementing.  

I would suggest syndications. You will receive the same tax benefits that you would get owning the property by yourself through depreciation. Syndicators will set up an LLC, and if the business plan of the syndicator is to sell after a couple of years (depends on the business plan being implemented), they could accelerate the depreciation on that property as well. Meaning, you could potentially not have to pay taxes on those earning at all!

You should see if the interest building on your debt could be beaten by investing that same amount. For example, the average interest rate for student loans is 5.8%. You could feasibly find cash on cash rental property return double that. Meaning you could pay off debt with the investment, and pocket the other theoretical 6%. Also, if you get an investment property and only are able to get the same return as the interest on the debt you are not taking into account that you are also building equity from the mortgage pay down on the property. 

@Taylor L.

Good angle on how I could try to add value to a synidcator. Thank you for the response.

@Greg Dickerson

That's great advice, thank you. I have read Joe Fairless's book on apartment syndication and he really preaches to start a thought platform. Now I have two experienced investors telling me to do the same thing, I better get on it!

@Matthew Porcaro

Ha! The real estate bug got me before I even started to realize anything about the stock market.

@Account Closed Thanks for the advice! Have a blessed day. 

@Robert Martinez Amazing thanks! I just went and used my Facebook for the first time in a couple of years. 

@Ivan Barratt

Great idea! My plan is to buy a multi-family with an FHA and refinance as soon as possible into a conventional loan. Then, go and use another FHA loan on another multi-family property. Thanks for the response!

@Ronald Rohde

I think my first investment out of college will be an FHA 203k loan to leverage my money in the rehab as well. Thanks for the response!