All Forum Posts by: Jeff Thompson

It's funny, but I work with the Army and it seems like they haven't learned this!

I'd say it's important to get a big picture view of all aspects relevant to your area of study AND find one aspect that really interests you and focus in and really understand it really well. Both are required.

It is funny how little people use community area's. Personally I've use them all the time! I think it's the lack of feeling of being included in a community vs having spaces available for individual use. I think eventually people will get off facebook and want personal contact with people. We aren't there yet though.

About efficiencies, as long as they don't make sense financially they won't be put to use. Experts are forecasting another 100 years of cheap fossil fuels, so I'm not expecting much to change there unless technologies get drastically cheaper or there's real progress on the global warming front. There's a quote that comes to mind here: "Americans can always be counted on to do the right thing...after they have exhausted all other possibilities."

Investors hoping for appreciation and are accepting negative cashflow, or those who didn't understand what they were getting into will be quick to jump-ship, but what's the rush to sell when you're making a good return on your money each month? The only rush to sell would be for a better opportunity and there aren't many better opportunities.

The only real risk is rent prices crashing. If that happens you will see a "mass exodus", but I think inflation will keep rents at least in place numerically. In purchase power they may be in fact go down, but at the dollar value I purchased at there will be no change, and therefore the investment will continue at the same rate of return. If my ROI is higher than inflation I'm staying ahead of it, and in today's market many people would be happy with simply conserving their purchase power.

Besides technology wise, I think future communities will be closer nit and communal instead of everyone having their own Isolated McMansion. Sure we want our personal space, but we need a sense of belonging too; The nuclear family has dissolved and we need something to replace it.

I also foresee energy production and manufacturing will go local. We'll have manufacturing centers with 3d printers and such instead of mass manufacturing and shipping things around the world.

Of course I talking WAY down the line...

Sounds like rent and invest somewhere else to me. I wouldn't quit and move as that kills your ability to get loans for a while (not to mention the impact of your personal life) and commuting sucks. You should be able find an investment property(or a few) somewhere that returns your rent with that 550k worth of down payment and loan.

I don't know nearly enough about Ohio... How hard is it filling units? You finding you need to go under market to keep filled or do lenient checks?

Don Konipol: I want to buy and hold, but as I'm leaving my overseas employment soon I wont have income to qualify for loans. Which makes my choices load up on properties now or come up with some some sort of "credit partner" deal.

I see now this idea is flawed, it doesn't do what I thought. Maybe I should just go join the cash only guys in Ohio....

Whats that old quote? "the market can remain irrational longer than you can remain solvent." Betting against the trend can be risky...

Sorry, I was in a rush to post before leaving work and obviously didn't explain myself well.

What I want to do is buy SFH's cash, rehab, then transfer them to "credit partners". I want to make it so they don't have to come up with any cash, only benefit from the arrangement. This idea is another path along the same lines as http://www.biggerpockets.com/forums/50/topics/72998-credit-partner-arrangement---sandwich-lease, only this is lot more simple and has more options (I can sell outright too).

This method I'd sell kind of turnkey style, but as a "leaseback" (with sublet rights) that I'd prepay so they would get their down payment and closing costs back (maybe I could even pay directly to the escrow account?) so it would take no cash up front (they would need to have the funds available though).

Upon further thought It would need to be a NNN type lease so PITI and maintenance is payed by the me so the buyer has no expenses until after the leaseback is over, Then the buyer would get the property to do as they want (hopefully keeping me on as PM). In this case as a NNN as my example before a $70K house renting for $1,000, $17k down payment, it would be maybe a 57 week leaseback at $300 monthly.

What I'm unsure of is if residential lenders (investor loan) would be ok with this type of lease and if it's all kosher.

I like this setup though, the buyer pays nothing then gets the property outright after a few years and I get all the cashflow until then, I sidestep my financing issue, and afterwards hopefully stay on as property manager. The buyer can pay the down payment and closing costs and be full owner right away as well.

I don't know how feasible (and legal) this is, but I'm exploring options and thought this up:

For a deferred down payment do a leaseback prepaid to cover closing costs + down payment. I have this in mind to transfer properties to a credit partner, but it could work in selling a "turnkey" too I imagine.

Lets say a $70K property, closing costs of $17K with rents of $1000. Leaseback for 20 months at $850 (to cover managing and vacancies) and sub-rent it out. After 20 months start splitting incomes whatever the arrangement.

I believe you can only sub lease to the extent of your lease, so odd terms would mess up the lease, but sound feasible? Tax-wise would be beneficial to the seller too. Could you deposit the prepayment directly into the escrow account you think?