All Forum Posts by: Burke Ericson

Hey Collin, Are you still increasing your holdings? I am wondering how you manage to get so many mortgages??? i have heard traditionally you can only get 4-10 with traditional lenders. I hope things are going well since your first posted this.

I am in California and I am looking to buy rentals in other states, in the most popular rental locales that are mentioned here on BP. Ideally I am looking to find rentals that are tenanted and ready to buy. I intend to do my due diligence, inspect and physically see the properties I buy, but it would be nice to get some leads from the community based upon real world experience. Thanks for any and all suggestions!

I am getting ready to help my mom sell and then 1031 a property in LA. The current tenants have really destroyed the house and the landscaping, and it really needs work to get it back into good shape. The issue we have now is, do we fix it up to some degree, or do we let it go as it is. After the mortgage is paid there will be about $1M left in equity if the house sells at the lower end current market value. However, we think that the top market value could earn us an extra $150,000-$200,000. The issue is, do we fix it up before the sale/1031 and to what degree? Really, the plan is to pay boot tax on existing mortgage debt and take cash out, trade down into some multi unit places with higher yields. The thing is, we will have to take out a loan to rehab and pay that loan back with funds that have the taxable boot applied. We found out our boot will be about 25%... I just wanted to see if anyone has an advice or tips on how to look at this. Thanks Burke

Hey Christopher, I am sort of in the same boat. I want to to get in the game but the barrier to entry in LA is very high and in my mind it is much easier to start off in a much cheaper market. I dont really understand how anyone can get a good cash flow going in LA. I am looking for turnkey in places where homes still cost 100k, because where I am at houses cost 1M and that just seems like too much for a novice like me. 

Congrats Collin, I read Rich Dad Poor Dad and it lead me to do great things as well, it really changed my life too. Anyways, I am new to this... but what I can gather is you used a LOC to finance one purchase with a mortgage , then rented that place out and took all the equity out of the new place to put a down payment on another place? Am I following? What type of down payments do you put? And how do you get funding for each additional acquisition? It's interesting because I am thinking about investing in the same area although I am out of state. I would really like to talk sometime once I get my ducks in a row. The biggest challenge I have is understanding how to fund each purchase, is there a simple way to illustrate that?

Charge as much as humanly possible. I am in a terrible spot due to rent control and inherited low rents. In fact, i actually suggest not getting into it at all. It is a terrible situation and the exit strategy is pretty much pay people off just to sell.

Sorry, double post, how can I delete this?

Hello again all, This is my second post and I thought maybe all of you out there might be willing to indulge me in a bit of fantasy. I am going to transact a 1031 property exchange for 1M in the coming months, and I wonder; if you had 1M to exchange in real estate, what would you do and why? For example; what kind of property and price points would you invest in? What cities would you invest in? Would you finance the new acquisitions or would you like them to be mortgage free? I realize there are so many ways to go about this, and it would be very informative to see what you guys would do if you were in my shoes. Thank you B

Hello again all, This is my second post and I thought maybe all of you out there might be willing to indulge me in a bit of fantasy. I am going to transact a 1031 property exchange for 1M in the coming months, and I wonder; if you had 1M to exchange; what kind of property and price points would you invest in? What cities would you invest in? Would you finance the new acquisitions or would you like them to be mortgage free? I realize there are so many ways to go about this, and it would be very informative to see what you guys would do if you were in my shoes. B

Hey guys, thanks for your great responses! Alex Deacon, if you can find me ready to rent, $1,000 a month, 80k price point SFRs, I would be very interested in the prospect. Do you deal with both urban and suburban properties? Sean Tarpenni, I am gonna look into KC and get familiar with the market. How big of an inventory do you have access to? David Foster, good points for certain. I think my initial idea was to budget capital for a 45 day option to buy contract or some such thing, however the idea of closing all properties in a short time frame is the best because I assume I really wouldn't have to identify anything because the ultimate goal would be to simply complete the 1031. Does that sound about right? Zach Quick, the current holding is in one of LAs hottest neighborhoods and unfortunately subject to rent control. The current income for having 1.15M locked up is about $3,400 a month gross, and the property taxes were recently reassessed too... I may not be thinking about this correctly (I am very new to this) but I figure I can use the exchange to double the income. I also figure in the future I can leverage and potentially pull out equity from some of the properties to acquire more properties. This also means I can sell just 1 property if I ever need I nice shot of capital, as opposed to having to sell one big property and all that entails. Really at this point financing anything might be difficult which is why I am trying to use this particular exchange plan to circumvent having to secure loans and really just focus on getting cheap, well conditioned properties. I do appreciate questioning my plan because I DO need to consider as many options as possible. If you would entertain me, what would YOU do if you had 1M to exchange? What kind of acquisition and in which market? Anyways, this place is awesome and thanks again to all! Burke