All Forum Posts by: George Red

A re-ping on this to expand to local banks too... not just credit unions. Hoping someone has a recommendation for a good financing partner local to the market. I could start cold calling but hoping for a warm lead.

Interesting, maybe a "payment holiday" on next year's taxes for the amount people have paid over what they would have otherwise been required to pay  with the errant assessments. I know I had sticker shock and didn't pay attention (I should have) to trying to appeal. It hit the pocket for sure on a per property basis. With rising values the assessment makes sense but the assessment raises seemed exorbitant.

A hypothetical to see how people factor costs when rolling equity forward into additional purchases.

For this example assume  you purchased property “A” for 100k, and put 25% down. 2 years later you sell it for 125k so you now have 50k (25k from your initial down payment + 25k in equity).

For your next purchase, would you factor your financials based on your initial 25k investment, or the full 50k you now have in pocket? If you subsequently purchased a property for 200k, would you count gains/losses against the 50k you now put in or against the 25k you started with as that’s what you’re actually out of pocket, depending on how you look at it.

I hope I worded that clearly 

Ditto, good'ol buy and hold properties. I need to practice patience as I'm at the point where I'm just about out of funds for downpayments and saving up enough for 25% down doesn't go as fast as I'd like. I'm aware of private money etc. but I've jumped into the pool of real estate but most around me are not as ready to jump in as well.

Presently evaluating refinancing to take my downpayment money out of one property (at that point it feels like a "free" property) and balancing if I should focus on aggressively paying some properties off or keeping leverage... classic dilemma I guess.

My 2 cents...

I faced a similar situation in a unit I lease. The tenant (inherited) habitually paid late and I just let it go at first because she always paid. Rent kept coming later and later in the month so I reached out to connect with her and shared the expectation that starting the month after next I expected rent in accordance with the lease or I would begin enforcing late penalties. I gave her some runway to get her finances in order and although she can be a bit of a squeaky wheel, she pays on time for the past 2 months.

As the person is still paying, I would just stay on them about the late payments, collect the late fees and inspect the property to be sure they're not damaging the inside. Assuming they're on an annual lease, I would not renew and go month to month at the end of the lease. As long as they're paying and not damaging the property I would take that over having to turn the unit, handle a vacancy and then trying to find a better tenant in said C area. A paying bird in hand so to speak... as long as they're taking care of the unit and paying. Ultimately it may be too pricey for them but they've already moved in, I'd ride that train until they got there. The turn cost and placement will be the same... you'll just get rent from now until then. Caveat being as long as they're taking care of the unit. Hope that helps, LMK if you have any other thoughts or questions.

- G

Hey all, looking into credit unions in the KC metro area and finding a bunch of options... looking for first hand recommendations for good local credit unions that people leverage in their investing portfolio for flexibility on loan products, rates etc.. Anyone that people know of that will do a heloc on an investment property? Any insight appreciated!

Hey @Darius R. Mathis, I invest in KC and live out of state... happy to be of any help that I can as you start off. Let me know if you want to connect or have any questions as you enter the market.

- George

@Nathan Frost I'm one of those boring long term hold guys... I've had some section 8 but don't base a full on strategy around it. All the section 8 I've had were inherited tenants. One hoarder, some drug use on site and one perfectly fine... batting 33%. Cant speak to your other options.

Go KC MO go... the Ohio pump is real!