All Forum Posts by: Michael Slockers

$60k all-in is possible in Tulsa in certain areas only. These are less desirable areas from an appreciation standpoint. Still some solid rental options. 

Are you looking for appreciation or just straight cash-flow?

As for the crime maps, they don't mean too much to me personally. I've had stuff stolen from my properties in the classier and the less-classy areas. Unfortunately this is a broken world and we can't get away from crime. 

 Thanks for the advice! I agree, I think a bird in the hand is going to be worth it now. Better not wait for "better" rates when ultimately 4% on investment property is a great rate and allows me to hit all my cash flow metrics with no issue.

Thanks for the post Jairo, but I think I should refi all four of them. To get a loan into 2050 on a long-term hold is worth it, no? Even if it isn't a rate reduction, it is a much better term. 

 Thanks! But take care of them? Does that mean pay them off and let them go get 9-12% elsewhere? Or do you mean continue on with them since they were kind enough to give me 4%?

These were seller carry-backs I negotiated when I found the properties. I would offer them some amount in cash, or maybe 8k more if they carried a note on it with a small down payment. In other words, these are mostly one-off private lenders. 

 Very interesting response, very thought-provoking. I have my entire portfolio in Stessa (which is awesome, just as a side-note). It is 10 properties total right now. What clues in your spreadsheet tell you at what time it makes sense to refinance? My earned appreciation isn't insignificant, but I'm also not looking to pull a bunch of equity out. It just isn't needed at this time. Maybe I should run a return-on-equity calculation for each property though...

You say Properties 2&3 are costing me money to refinance. But in fact, as I mentioned, I save a small amount each month be doing a refinance. The gain (and the point of my post) is to get a long-term loan instead of one that only lasts another 5-6 years! In other words, it isn't just about the math... 

Thank you!

Well I have finally gone through the teeth-pulling exercise of providing a bank with every detail about my life, so I can get another loan to refinance one of my properties (property #1). Now that they have the information they need, we're discussing refinancing MORE properties. Interest rate is 4%, so I'm willing to look at the numbers.

However, I'm finding out it isn't just about the numbers, is it!? My property mentioned above (#1), is an easy decision because I have it with a private lender and need to pay off the loan by October. Urgency drives me to refinance. 

Property #2 is a private lender deal that I still have until year 2026 on. Refinancing will save me $11 per month, after closing costs, etc. That's not much of a savings! Plus, it will re-start my 30-year clock. Is it worth it in order to just have the long term (through Year 2050 👽)? Cash flow math doesn't make much of a difference, but peace of mind for long term. My private lender may not love the idea, but can't please everybody, right?!

Property #3, almost the exact same situation, I have a private lender at 4.5%, so the monthly savings are trivial. Benefit is locking a rate through 2050.

Property #4 is on a business loan with a prime-plus-one rate. I think it is 6.5% right now, something like that, and on a 20-year amortization. My monthly payment will go down by $228 on this one. It's a very easy decision. 

As often happens, just jotting my thoughts down in the post helps me answer my own question. I do love the idea of long term low rates, inflation-hedging, etc. I think I'll refinance all four. THANKS FOR THE INPUT! LOL

(Cash-out refinance, while appealing, doesn't seem to be as achievable because the rates go up. I could probably only get $10-20k out of each property too.)

@Casey Roman true true

BwahaHaha I want to help not hurt! But you've got way too many excuses!!!

My list of ways to do creative investing was not to tout my accomplishments, it was to encourage you that if you want something badly enough you FIND A WAY!!!!

Get creative. Quit saying no and start saying yes. You can do this!

Nice @Corbin Marcotte!!!

@Steven Ko NAILED IT. All I hear the original post saying is excuses. Every response from the original poster is "great idea, BUT". I would recommend reading the book Extreme Ownership and deciding if you want to be a real estate investor, and what kind? Congratulations for saving up that much cash, but to say it is worthless, it just blows my mind. There are so many great options already listed in the responses in this forum. No more excuses, you need to jump in with both feet, or you can only blame yourself!

I haven't been at this too long and we've done flips, rentals, private lending (as lender and lendee), traditional loans, local bank borrowing, borrowing from family, sweat equity, owner carry (owner side), new construction, wholesale, and seller finance (on buyer side). GET AFTER IT! You CAN do it! But nobody else can do it for you!

@Robert Ellis the LOI is solid advice

Often I'll put several options in the LOI so the seller isn't choosing between Yes/No but between 3 different options, each with varying benefits.