All Forum Posts by: Dennis Maynard

@Dennis Maynard I’m IN! Buy and hold Real Estate is the best hedge. I do try to keep up with all current events and it’s been difficult doing so. But! With all this chaos, one thing has remained true. Real estate has been the best way to combat inflation. But the big question would be, WHEN will the market level out and exactly what does that look like? We haven’t been in this situation ever before, I don’t see anyone raising their hand with the answer. I don’t think anyone knows.

@Dennis Maynard I can not say this enough and it's scary how little it is spoken of; Risk, risk, risk RISK RISK ANALYSIS!

Everything, every deal, every number MUST start with Risk Analysis. And I near to never hear it spoken of in open public forums like this yet, inside the world of Institutional/Professional REI it is the single most centric item we discuss, analyze, assess, quantify, weigh and measure.

Let's say your considering an est. 15% ROI property, IS that going to ACTUALLY turn into a 15% ROI in reality? Projections are NOT realized returns, meaning just because something "penciled-out" to make that does not mean it actually will. What is the Risk Analysis? Is it at high or low risk?

A person can easily see something that looks great on paper yet, it's based on fairy-tale best case scenarios and once they get in there is issues with tenant reliably paying rents, or tenant does damage to property, or PM issues, or property tax's go up 20%, or or or or. 

There is a reason that A-class properties have a small COC rate, because they give SECURITY, reliability, performance, and equitable gains. AND conversely there is a reason D-class properties have BIG COC numbers, because risk is through the roof, and the slightest deficiency in operations will all but certainly net BIG losses, and or reinvestment requirements.

So if your going by blind tunnel vision of just COC %, I would pay debt because that 10+cap is almost a certainty for net loss for anyone but a pro at that property class and if your a pro, you wouldn't have tunnel-vision on in the first place.

I know the general populous wants to hear that all you gotta do is say "yeah, I wanna be rich" and it's as easy as just buying a property, tenants bow down and worship the LL for the opportunity to enrich them, governance awards them medals of service for providing housing, money flows like honey and all is well..... Yeah, not so much in reality, in reality the life of REI is basically everyone and everything is out to eat your lunch, and you gotta be smart, fast, strong-like-bull and tip-toe through the mine-field.

@Dennis Maynard Great thread and I am smack in midst of this. Yes, bad debt does make my refi terms worse. Conventional is too expensive if any lender would take the risk. FHA is forgiving w/better rates but also with PMI. I am working W2 plus side hustles to get rid of bad debt asap. Rolling some debt into refi and then loan signing, Rideshare, AirBnb and Turo are adding 8k to 10k per month. By 2022 will only have One car. payment paid for by turo and student debt so that 8k - 10k plus W2 will snow ball into 100k to invest in 2022 and grow from there.

@Dennis Maynard

I face this question earlier this year and here's what I did. I had $10,000 in credit card debt that I paid off first. This would help me with debt to income ratio. I do have a low interest vehicle loan that I did not pay off. Then I got a HELOC on my primary. Now I am currently purchasing my first duplex.