All Forum Posts by: David C.

How is owning an NNN leased property making the seller's life 'complicated' or 'taking his time'?

Aren't these types of properties often sold to busy, wealthy doctors and lawyers who want Real Estate without the hassle?  Could it be that the seller sees a large nuisance of deferred maintenance or upcoming tax or demographic changes that will make the property complicated or less profitable to own?

I'm not implying anything here, I have no actual experience, just someone who has done minor research into buying NNN properties, passing along questions that occurred to me.

Split it up.  Allocate $50,000 to start up your flipping business.  Pre-pay your mortgage with $50,000, so each payment you make is now farther down the amortization schedule.

Put the remaining 95,000 in a separate account a revisit the decision in a year.  If you have failed spectacularly, you probably only lost 50,000.  If you have done awesome flipping, you can add capital to it.  If you get sick or injured, you have 95,000 to make your life easier.

No sweat @Bryan Drury.  You saw bad advice and pointed it out, that's what the forums are for.

@Bryan Drury I stand corrected.

I would not sheet rock the ceiling, it will make future electrical and plumbing repairs more expensive.  That's why people get those ugly drop ceilings, it makes maintenance easier.

Tell the tenants to buy a space heater and follow the 'distance from flammable stuff' rules on the packaging.  The basement looks small enough that a space heater will warm it up in no time.

I'm a computer consultant.  One of my old Irish Aunt's used to regularly ask my Mom: do you think one of David's customers will ever offer him a real job?

It did not occur to her that taking a real job would mean a 65% pay CUT for me.  I was choosing to do consulting to make more money, not because I could not find a job.

My Mom knew this and thought it was funny.  She did say jokingly that her parents would think it was funny that they had come to the US for a better life and better education - and that now as a member of the next generation I was choosing to be a 'tinker' - they Irish word for the traveling gypsies who live in campers and travel around Ireland doing odd jobs and committing petty crime.  Basically I was choosing to have no steady employment.

People criticize what they don't understand.  Enjoy it.

You could point out that someone will own these homes and manage them, and if they are your friends and family - don't they think you are a decent guy?  You don't get to define what exists in the world, there is a large population of renters - its a fact, someone will own, manage and maintain the properties.  Why not you?

If not you? who?

And are those other owners going to be better for the tenants and the community than you? if so,  why?

Forget the why's of renting: its a reality.
Forget the why's of income inequality - its not up to you.
You have recognized reality and chosen your place in it.

I'm not a real estate investor because dealing with tenants sounds like more trouble than its worth - its a choice, I know I'm giving up money and returns.  I am able to meet my goals without it.  I have utmost respect for you and what you are doing and hope it goes awesome for you.  I think you earn your gains with either work or risk.  I'm not willing to do the work or take the risk, I certainly believe you deserve the returns you get for doing both.

How about the advanced investor - what is one thing that is an expense for a corporation but not for any other kind of business?

What if your one city was Baltimore yesterday?

1. Neighbors must love you!