All Forum Posts by: Chris Youssi

SELL SELL SELL! Anytime you have any one of the following 

Break even cash flow at best / run up of appreciation which is not sustainable / $5000 in expenditures not counting rental loss's while rehabbing

and you can do any one of the following;

Create 100k in tax free gains / reinvest with 3-4 SFR with your equity which will spread your risk / create + cash flow with 3 /4 SFR

It is time to SELL SELL SELL!

Love this thread lots of good insight. EZ answer for me personally

1.) If I could have financially, I would have bought more SFR earlier than 2015 still have forced major equity on all my deals but far and away the best way to invest IMHO

2.) Always follow my # 1 Proverb no matter the appreciation "You can never lose money by taking a profit!". Selling 4 /30 this year taking money off the table preparing for larger purchasing opportunities. 

3.) Once in awhile we get caught up and "love our investment". Never lose sight that this is a business and do not fall in love with your properties. Sell high buy low no matter leaving your emotions out of the decision. EZ to type sometimes difficult to achieve.

Best wishes moving forward.

Sandy and I will be attending. THX for putting this together.

Morning John. Sounds like what your referring to is a "spec home " or speculation which most lenders in our area will run from because of the rawness of the correction. Not sure of your market but I suspect it is similar in nature. I am a custom builder in our market and here is how I am able to build spec homes with no issues:

1.) I own the dirt - similar to your situation unless I'm misunderstanding

2.) No GC fees / overhead n profit or Realtor commissions included in my financing

Between these 2 items I have 70-75% equity all day every day which is acceptable to most lenders. Not sure why you are having issues but here is a suggestion. Talk to a community bank or a credit union. if your using a similar strategy per 1/2 above why not rent the units then sell 1/2/3 years later for capital gain which can be quite a bit lower than ordinary income tax.

Best wishes on your new endeavor

Chris

THX for the post appreciated none taken. One comment has me very intrigued and have been doing this for quite awhile so hoping you enlighten me on Technical default and where this has taken place? Commercial lending for sure, what about the secondary market?

THX

# 1 CY Proverb " You can never lose money by taking a profit!".Madison about 50 minutes due north from me and our market also overpriced for SFR homes we like to add to our portfolio. Couple of questions / comments

1.) What are your short term 1 year medium 3-5 years and long range objectives 5+ years and how does holding vs selling into these plans?

2.) I am a huge fan of rehabbing like new when we purchase anything so there is minimal maintenance on any of our 30+ SFR. In 2017 we spent on average $47/month / unit with an average value of $110k. The comments you made about some repairs would be a concern windows deck etc...

3.) Have you scoured the market with a Realtor who specializes in your market with investors? I would start here and also get an accurate value for the prop.

4.) Another alternative - I think your best is to do the rehab now and force more equity then sell - reinvest . Madison was very stable thru the correction - head south to Janseville or go 20 minutes in all 4 directions for better values on your purchase after sale.

Happy hunting!

# 1 CY Proverb - "You can never lose money by taking a profit!"

IRS forbids "self dealing". I would check with whoever handles your IRA and make sure they understand these rules. IMHO it sounds like a prohibited transaction. In other words one cannot profit from ones own deals - has to be an uninterested third party.