All Forum Posts by: Derek Kirkwood

@Jordan Knoll  I have been looking at moving to Xero also.  Have you found it difficult to find an accountant that works with Xero and understands real estate investing?

For anyone curious, Vince did catch something weird with the payments.  Supposed to be a 30 year note but the amortization is for a little over 20 years.  Would need to get more info from the seller on exactly whats going on here before buying.

Agree with @Mike Hartzog on doing the math.  There is a place in this business for those who suck at math but are great with people: finding deals and finding capital.  But if you are going to run all aspects of the business yourself then gotta know the maths!

Can't be sure without seeing the numbers.  If you wan't to PM me the info I'll take a look.

@Mark Gibbs  thanks for taking the time to post this.  For this first loan mod, did you require her to make a down payment?  

Favorite book so far is Bulletproof Title Due Diligence by Alex Goldovsky. It’s a must-read

Even if they redeem it sometime down the road you should be able to keep any rents  https://www.biggerpockets.com/forums/70/topics/181968-alabama-tax-sale-redemption-rights

I use the one that works with Simplisafe security system. I put it next to the water heater and it went off in the middle of the night once because the water heater failed and was leaking everywhere. It saved a basement flood, so well worth the security system just for that

Well thats a pretty cool relationship you have with your tenants!  

Not sure if these guys are any good but it looks like thats exactly their business.

I believe hiring an MLO to do the origination would allow you to still have the balloon payment, but there must be a reason you are not doing that.  I'm assuming the MLO is cost-prohibitive?

@Account Closed  For rental property your tax shelter is depreciation and 1031 exchanges.  Theres not much in the way of tax sheltering notes besides putting them in IRAs.  This is the biggest reason I can see why notes are often put into IRAs

When comparing long term opportunity cost between rentals and notes, the big difference besides depreciation, is that rental property should appreciate and rents should increase over time.  In this way you could argue that rental property is inflation protected.  A performing note does not appreciate, in fact that fixed monthly payment will be less meaningful over time due to inflation.  See inflation-induced debt destruction at the bottom of this article, you would be on the other end of that stick as a note owner.

I think you could also argue that leveraging is easier/more practical with rental property, which might be the biggest factor in long term growth.

Thats not so say one is better than the other for long term growth, just that there are different things to consider.  You should be able to get the same amount of growth going either route.