All Forum Posts by: Douglas Skipworth

Are you still buying right now?  We are in Memphis!

What's the highest interest rate you've paid on a long-term loan?  My first two loans on investment properties in Memphis were with Regions Bank at 8.5% and 8.8% (both on 20-year amortizations).

Are there any teenagers out there buying real estate?  We're working with one right now and it's beyond impressive!  He's "Buying & Selling" to generate income and he's "Buying & Holding" to put his money to work.

If you're looking for deals in Memphis (or just want to learn more about buy and hold, fix and flip, SFR, turnkey, small multifamily, or hard money loans), please subscribe on YouTube or Facebook. Each week @Dean Harris and I cover it all!

Quote from @Craig De Borba:

Hi All,

I’ve been learning a lot reading though the threads in this community and finally have something to post about.

My background: RE appraiser and loan financing way back pre-2008 crash, helped family landlord multi-units while growing up.

Situation:
Inherited a duplex but thanks to the change in California Prop 19 it will be reassessed to current market value. This reassessment will be a 1,000% increase in property taxes eating the cashflow. There is a mortgage on the property for 20% LTV (~3.7% int rate). I hope the rate passes and is not refi to todays rates, but I don't know how that process works via a Trust.

My plan: 
Sell this property and use as a seed to build a portfolio out of Calif. that I can retire with in 5-10 years, and eventually turn these 2 doors into 20 someday.
Due to current interest rates + tax reassessment, cash out refi to acquire more units will make it negative.

Some basic location criteria
1. States where I can get more for my money. I think I can turn these 2 doors into 8 or more.
2. States that are landlord friendly
3. Lower property taxes, good economic growth, low unemployment

I live in Texas but prices here are getting really high, unless I am looking in the wrong area. Other out-of-state areas I have seen mentioned in the forum are: Ohio, Arizona, Oklahoma, Arkansas.
Any suggestions for geographical location?

Starting with $500K cash + financing I could increase purchasing power to acquire more units vs. paying all cash.

Would you put the min down payment (20-25%) and finance the remainder or pay all cash and not carry any debt?

The properties need to cashflow or at minimum pay for themselves, because long-term goal is to replace my job income.

Considering circumstances and long-term goal, how would you do this?

Thank you

Have you read Millionaire Real Estate Investor by Gary Keller? There's a great section in the book that helps answer your question with simple math under 4 scenarios (see Buy & Retire below).  Besides a few basic assumptions, the 2 biggest variables are (1) when you're going to buy and (2) when you're going to retire. The good news is that you've already answered those 2 questions!

Buy & Retire 
1. Buy today and retire on the cash flow today
2. Buy today and retire on the cash flow in the future
3. Buy overtime and retire on the cash flow in the future
4. Buy overtime and retire on the cash flow and equity pull out in the future 

Congratulations on getting started, on inheriting the duplex, and on making your first BiggerPockets post!

Quote from @James Martin:

Hey Michael you wanna sell your house? 🙃

 😂

What's an investing opportunity and what's not? Watch below to find out!

If you're looking for deals in Memphis (or just want to learn more about buy and hold, fix and flip, SFR, turnkey, small multifamily, or hard money loans), please subscribe on YouTube or Facebook. Each week @Dean Harris and I cover it all!

Do you have a reason for the specific criteria you use to buy investment properties? We'd love to hear what it is.

If you want to learn more about real estate investing in Memphis (including buy and hold, fix and flip, SFR, turnkey, small multifamily, or hard money loans), please subscribe on YouTube or Facebook. Each week @Dean Harris and I cover it all!

If you don't know what you're looking for, you'll find it!

If you want to learn more about real estate investing in Memphis (including buy and hold, fix and flip, SFR, turnkey, small multifamily, or hard money loans), please subscribe on YouTube or Facebook. Each week @Dean Harris and I cover it all!

If you're wondering where to start your real estate investing journey, look no further!

If you want to learn more about real estate investing (or buy and hold, fix and flip, SFR, turnkey, small multifamily, or hard money loans) in Memphis, please subscribe on YouTube or Facebook. Each week @Dean Harris and I cover it all!

We see lots of investors who haven't clarified their investing Criteria.  That's pretty much step #1 if you want to be successful.

If you need a guide, check out this resource from Millionaire Real Estate Investor by Gary Keller.  I've been using it for about 2 decades!

https://cdn.shopify.com/s/files/1/0262/3442/1336/files/MREI_...