All Forum Posts by: Neil Schoepp

@J Scott

Just read this on facebook, from a reliable source so let's say it's accurate.

"Freddie just announced this morning that the cost of I/O was cut in half! Instead of 4 BPS per year, we're now getting it for 2 BPS per year!!! This is huge!!!"

I believe this is huge but not for the same reasons. Just one more thing to add as an observational clue. They are making it even easier, not a good sign in my opinion. 

What is your reaction as it relates to your book?

Irina, just wanted to say thanks for putting such a great event together. Lots of golden nuggets was presented. I look forward to seeing you again. 

25% is the minimum I would put down, so no it's not to much 

A book that is widely recommended is 

Investing-Duplexes-Triplexes-Quads by Larry loftis

Easily found on Amazon or maybe even your local library.

I will caution you to underwrite with PM included. Even though you plan on self managing, one day you may need to have someone manage for you and if not your time managing the deal is not free. So you would take that fee.

@Irina Balueva Is there a floor and or suite #. 

@Wayne Yahnke

I like that it is on the city grid. It's not a bad Idea to have the main line scoped from the house out to the main line. Even with good flow the pipe could be broken / have tree roots, etc. It will be costly to rip it out and replace / repair it. 

Request?....Demand! it is part of your due diligence. Remember that if it's still in affect you have to abide by it. Know what you are getting into.

Yes if they are month to month then you can require that they sign a new lease and even go through your screening process. If they refuse politely and professionally (per your jurisdiction) issue your 30 day notice.

@Wayne Yahnke

Congrats. Hard work does eventually pay off.

Buying off Market or off the MLS looks very similar now that you identified the deal. You need to negotiate the price then sign the P&S agreement. The P&S is state specific and should be written up by your attorney. Make sure he is a REAL ESTATE attorney. This is a good time to find one that will also be able to handle evictions in the future. Pay per eviction not per hour.

Home inspections are always a good idea. It's another set of eyes on the deal. In addition, I always bring in a septic specialist they will look at the tank, field and lines. A septic system can run you anywhere from 4K to 40K+ not a surprise I am willing to risk.

As far as tenants go. If there are leases in place you must adhere to that lease. If there are no leases in place then they are month to month and you can give them notice that you will not be renewing their lease. Of course there is a legal way of doing this and it varies by jurisdiction but in general you give written notice 30 days in advance.  You do not have to give a reason. But if they are clean and pay on time why get rid of them. Screen them like anyone else and have them sign your lease.

Make sure you find out about security deposits. Did the clients pay the owner a deposit and if so when and how much. Confirm this with the clients so there are no surprises when they move.

One more thing i will throw out there is that when you are underwriting the numbers make sure to account for capex and property management. Yes even if you will be self-managing. One day you may choose not to or be unable to self manage. 

@J Scott

Thanks for the links. The first one is where I am pulling my data for. It's good to see I'm in the correct place.

Thanks for the reuters article. The added info was well received and a great read.

@J Scott

Crystal clear now. I was looking at completely different and that's why it made no sense to me. 

I have a question about the yield curve,

As I plot the yield curve:

Is this something I should be doing daily?, as they are daily numbers. If I do it daily does the curve have to stay inverted a certain amount of time before I can say Yes it's an inverted curve and It's indicating a change.

Hey @J Scott

I appreciate you taking the time to make us smarter. This book came at just the right time for me as this topic is a new undertaking for me.

As I plot the yield curve:

Is this something I should be doing daily?, as they are daily numbers. Or Monthly?

Also you talk about the Buffet indicator and reference a chart at the top of pg. 41.

"Notice that the Buffett Indicator has only been above 100 percent four times in the past 50

years, and all four times were followed by a recession within a couple years."

Could you clarify this. It almost seems like the wrong chart was inserted (though I'm sure it's reader error). Where is the 100% and which four times.

Thanks for the help. I'm sure we'll be talking again. I'm sure to have more questions.

@Jesse Karr I have not dealt with this before. 

If it were I would move forward with eviction. I need to vigilantly protect my investment.