All Forum Posts by: Greg Junge

@Frank Wong Very true! I like getting people's different perspectives on financing.  I truly believe being successful in real estate boils down to the financing.  Thanks for your response!

@Frank Wong 2-4 units is still residential financing, not commercial. Why put 30% down when you can use more leverage and not come out of pocket as much?

I agree you have to adjust your game plan, but in my opinion, putting more down to make the numbers work isn't a great approach. You can put 50% down and your numbers will work all day long, and your "cash flowing" but you cash on cash is horrible, and you are just buying cash flow at that point.

My opinion anyway. I'm just a fan of using as much leverage as possible. I've put 15% down before and taken the PMI because the numbers still worked, and I'm not paying that PMI, my tenants are. And that 5% I saved was a nice chunk I used for additional investing.

Again, my opinion. Happy investing!

@Laura Abbott Thanks, I've been in touch with him pretty regularly, but just wanted to see what else people from BP had, if anything.  Thanks Laura!

@Anudeep Yapala Great, thank you so much!

@Account Closed Thanks Mike, if you do find that person, please let me know. I did search for people locally for assisted living already and have reached out to a few.

Hello all, 

I'm a real estate investor and Realtor here in Phoenix but wanted to see if anyone had any of market deals that are either set up for Residential assisted living, or is set up and has the business also that's for sale as a package. I found a few options on MLS, but wanted to see what other had, if anything. I'm looking mainly in Scottsdale, anywhere from 400k to 700k.

Thanks in advance!

@Austin Smither Langley great point! This one word, along with many other benefits is why I transferred most of my stocks and Wall Street money to real estate. Best decision I've ever made.

Real estate has tax benefits, tenant paying your mortgage, long term appreciation, helocs which you can borrow to buy more, inflation hedging, and LEVERAGE!

I'm glad I figured this out at a relatively young age. To each their own but in my opinion, real estate has many more advantages than the stock market.

@Jay Hinrichs nailed it in his posts. His logic and possibly his words convinced me that I didn't want to deal with out of state investing in this type of asset class.

But I'm sure it works for some people and everybody's situation and risk tolerance is different.

@Larry Turowski & @Jaysen Medhurst - I am with you on using leverage, I'ma big fan of using someone's else money as much as possible! Thanks fellas!

Hi BP,

I know this a question for my cpa but just wanted to get thoughts from you all regarding depreciation. I have a property worth 85k and I've had it for 3 years or so.  I understand how depreciation works, but just wanted to ask...

With all things being equal, does it benefit me and/or my taxes if I sell this property and buy two properties with leverage?  Let's say the new properties are 200k each.  I assume the answer is yes because I'm depreciating two properties instead of one, and the value of what I'm depreciating is of higher value also?

Am I correct in my thinking?  I know not to let the tax tail wag the dog, but just wanted to get a perspective from the tax and depreciation side of a deal.

Thanks in advance for any responses!
Greg 

@Peter T. It's all about your comfortability level but as far as keeping things organized, I find it easier because rents are automatically sent to each bank account and expenses the same but everyone has their own system.

But everyone has their own system and what works for them. I'm just sharing my more conservative view and belief in asset protection.

Best of luck and continued Success everyone!

@Daniel Kong I've heard that as well but I'm not a CPA or giving advice. I have a separate bank account for every property, it's really easy to set up and shows that each LLC that has its own property is a business of its own.

Again, that's how I am doing it, doesn't make it right or wrong, but my opinion.