All Forum Posts by: Don Spafford

@Samantha McCormick If you have a Pro membership, you should listen to podcast #23. There are also some great links on there for Military personnel. It may have something that will benefit you.

@Kareem C Micheli Good that you found BP. The calculators alone can save you from making costly mistakes. That and the podcasts/webinars are why I decided to join the Pro membership. I'm in Eastern Idaho which I think is still a great place to invest. But you have to always run the numbers to find what makes sense for the best return and least headaches. Best of luck to you!

@Chris Jensen BP is an awesome place. I'm from the mid-west originally, Omaha, NE. In Idaho now. I found BP about 9 months ago and because of it got into my first property, a 4 plex, which cash flows awesome, $1k/mo. 

Get familiar with the BP calculators. The rental property calculator is a great resource to filter out bad deals. I've analyzed hundreds using the calculators and ones that look like good deals turn out to not be. The Pro membership is well worth it. I also suggest reading many books. I always hated reading but in the last 7 months or so have read a lot. Just about every BP book and many others suggested on the podcasts. Tons to learn. I highly recommend "The Book on Managing Rental Properties".

If you would like to invest in Eastern Idaho, send me a message. I can help you out! Some really amazing opportunities here, far from Boise.

This was the first book I bought from BP back in Nov 2016 and loved it. For a tax book it is definitely not boring, and I read plenty of tax books in school. I highly recommend it.

To add to this thread, I've been wondering, where do you find the value of just the land? Does the county assessor have this? Since you depreciate the building, not the land, you need to know the value of just the land but where/how do you get that?

@Thomas Allt Welcome. BP is awesome! Listen to as many podcasts & webinars as you can. I'm in the Idaho Falls area and invest in the Pocatello area which si somewhat near you. I can try to answer any questions you may have or if you ever go up to IF, we can meet up.

@Andrew Ware What @Brian Cardwell said is true but in addition, the reason for doing it this way in large chunks rather than just making an extra $700 or whatever payment each month is that it pushes you much farther ahead in your payment schedule so that each subsequent normal monthly payment is paying more towards the principal and less in interest. if you just make an extra payment here and there, it helps you pay it off sooner, but doesn't save you very much  in interest.

I found the company that teaches this, there is a short video on their home page, the velocity banking section starts at about 19 minutes in. it may be worth watching to understand it a bit more. I am not promoting their company or anything they do, I have no affiliation with them. If the link works, it is here :

https://www.nreigrp.com/velocity-banking-strategy-2/

if not just do a search for velocity banking strategy and find the one from NREIG. Of course the video is a sales pitch for their service to teach you more in depth how to do this but the basic presentation here is still pretty good.

@Renee Bridwell Thanks for adding some new information. I agree with you and do understand that this scenario is not making extra payments from your earned income. Like you said it is more of a mindset change on how to better utilize your income, as you are still essentially saving that extra $1k per month (sticking to the original example) by putting it back into the LOE and saving that amount back up each time to redeploy the full amount of the LOC. So yes, it totally makes sense to me. I see the point others are trying to make as well. it probably is not for everybody, for sure. But I still see it as something we should all get more educated on to be more prudent with how we pay interest. Thanks to everybody who has posted to this thread. I never expected it to go on as much as it has already. This is truly amazing.

@Rosalie Taran I agree with others that is would be best to get a sure thing now, than the unknown in the future.

Another idea for when you are ready to buy, if you are able to get your primary and a rental in Idaho, try to get the rental where your daughter goes to school. If the school regulations allow single students to live off campus, you could get a 4-plex and let your daughter live in one of the units, while the other 3 cover the mortgage. If the units are 2-3 beds, she could even get roommates and have them rent the other bedrooms. You could also then pay her to manage it if she/you want for her to gain experience and reduce your income taxes on the rent while providing income for your daughter. just a thought. My daughter is 15 and she is getting more into learning & understanding about the power of rental properties and we have had a similar discussion for options for her when the time comes. But like I said, you would first want to find out the school regulations on student housing.

@Joe Solkiewicz Are either of these in need of any major rehab or anything that is in need of updating or fixing? Are the current renters paying on time and up to date? The google map views look decent on the outside.