All Forum Posts by: Jim Parker

Hello Robert and best of luck with your future adventures. Cash always flows in all Real Estate investments, the variable is which direction that cash flows. :)

I must say that I can't recommend an out-of-state purchase and lease from halfway across the country. Unless you pay local professionals to manage and maintain the property this will quite likely become a house of pain for you. Located down the street and managed by yourself is a better formula for maximizing positive cash flow as opposed to maximizing negative cash flow.

Most mortgages will not write a loan with the down payment borrowed, which is effectively what a Celsius loan would be here. Someone in the private/hard money channels might do it but I'd hate to see the interest rate and terms associated with that note. Another factor that drives cash flow in the wrong direction.

My advice for your first is to either live in it or live close to is and bring the cash to the financing party. Get fancy with future deals.

2 Votes

Quote from @Simon Obas:

I have a home listed for 11 days and I’ve had zero offers. It’s a flip so the home is fully renovated. Given that it’s a sellers market I assumed as soon as the home listed, the offers would start pouring in but nope! I’ll admit the landscaping was not good which I am currently addressing but the home itself is nice. I just don’t feel like my agent is doing enough to market the home needless to say, she’s not familiar with the area. it doesn’t even have a sign outside. My research also tells me that We probably overpriced the home…. My thinking is to finalize the landscaping and then get a new agent to re-list. Listing price is $849,995. Address is 69 sylvan rd Madison ct. feel free to check it out on Zillow…. Would love your thoughts on what I should do.

Hello Simon, there are some basic things going on here and I'd like to point out just a couple.

You went to market with terrible curb appeal. I wouldn't suggest ever doing that again since that is catastrophic and very few marketing discussion points are even relevant with an ugly landscape. This isn't your agents fault.

Secondly, the single biggest killer of offers is to overprice the property. This too is not your agents fault.

I'd love to know why you believe firing the agent is the right thing to do, but addressing the landscape and reducing the price are your clear actions.

0 Votes

Quote from @Hannah Joy:

We didn't think the offer would be accepted!

There is an important teachable moment here. An offer is a legally binding action when accepted and shouldn't be extended frivolously. A plan should always be in-place and well researched in advance of extending any offer.

1 Vote

The best financial partner I've worked with is Stacey Deloche Oldaker at Finance of America in Merritt Island. I recommend her highly and let me know if you would like her contact information.

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Orlando, Florida

Buckle your chin strap

1 Vote

Quote from @Kerry Baird:

If you can rent the two houses again, especially if the market rents are at a higher amount, I think I would go that way. Or do small repairs, and get tenants in asap, you'll have cash flow to keep going. You need a mix of money to fix houses and get income as the houses are rented. This is peanuts. Won't help you get caught up, or solve credit issues. Better plan was to have had the HELOC in the beginning.
In order to be conventionally lendable, you need good condition and a lease, plus a couple of months with those rents hitting your bank account.
in the meantime, ideas: Do you have cash accounts you can use to pay down credit? Borrow against your retirement accounts? Sell something? Talk with your relationship lender? Maybe personal loan? Tax return and refund? HELOC on your personal residence?

Sorry…this sucks. Been there, done that. Good luck~

Spot on great advice... especially "Or do small repairs, and get tenants in asap, you’ll have cash flow to keep going." Two mortgage free properties are powerful assets when they are performing (leased) and they are liabilities when they are not performing (vacant). As long as you have tenants in place with a DSCR > 1.25 (which is easy with no mortgage) and a need for cash that is less than 80% of the value of the property, this is where I would first look to raise cash to reinvest in their improvement. 650 is probably the credit score floor here but depending on the amount of cash you have to raise Kerry has a great list of workaround options, Performing leases changes everything for your situation and I hope you can find a path to that milestone.

1 Vote

Quote from @Kyler Cook:

@Jared Bauer bro said he’s getting older now and he’s 40. It would be a crypto kid Lol! You have 35 years of work life left. You’re crushing it. Take it slow and get into something that makes you happy. No one here can tell you what it is. Try different things and see! You’re obviously insanely talented and an alpha. You’ll do fine.

Truer words were never spoken. Congrats on your success Jared. The multiples you have in front of you are smile inducing...:))

0 Votes

Quote from @Chad S.:

@Alan Grobmeier

Well I invest in Michigan and have done pretty good for an average joe.

Hello Chad. I hope your investments in Michigan meet every expectation you have for them and if they do that then not much else matters. After living in Michigan for 20 years, it wasn't until experiencing the markets in California and Florida that I realized how anemic the growth rates are and why they're that way.

The OP questioned whether investing in-state or out-of-state was advisable and my direct experience suggests that the investing out-of-state is better by a staggering amount. I'm very glad I learned that lesson and if it helps someone in a similar circumstance I offer it here.

I hope you continue to knock it out of the park in Rochester.

0 Votes

Quote from @Ryan Moyer:

Quote from @Alan Grobmeier:

Quote from @Ryan Moyer:

Quote from @Alan Grobmeier:

Don't invest in broke(n) states. Those include: Michigan, California, New York, Oregon, Washington, to name a few. If you do, you will shoot your eye out. The Fed & these states in particular, will be the first ones broke. Where will the $$ come from when they are broke? Your property taxes. ;-)

Florida, Texas, & 'Bama are your best bangs for the buck.

What metric are you using here? New York is one of only 10 states that operate at a net positive, giving more back to the federal government than they receive in federal spending.

Alabama ranks among the worst in the country in paying back federal debt.

New York pays out $116 billion more to the federal gov than it receives from the government each year, while Alabama operates at a $96 billion annual loss.

@Ryan Moyer New York is STILL under an eviction moratorium. Hence, it's 'broken'. If you want, I can go thru ALL 50 states for you. ;-)

Lol what. You said broke, out of money. Not "broken" with some made-up definition. Similar letters, totally different meanings.

Also, what does an eviction moratorium have to do with STRs? We don't do 30+ day rentals in this subforum. Do you even know what subforum you're in?

Take your off-topic rants somewhere else.

This is a textbook example of an off topic rant Ryan and I'm not at all sure why the things people decide to post need to be policed by any of us. Myself included.

1 Vote

I lived in Michigan for 20 years and I can honestly say that I'm very glad that I don't own any real estate in Michigan. Growth is dismal, taxes are horrendous, and prospects for future economic strength is virtually nil. Michigan is a beautiful state but is completely unworthy of investment in my view and will grossly underperform other markets as far as the eye can see. Everything invested in high growth markets, regardless of the vehicle, will dramatically outperform and have much lower downside risk than anything invested in Michigan. The problems there are structural and irredeedmable.

2 Votes

All Forum Posts by: Jim Parker

Jim Parker has started 0 posts and replied 20 times.

Post: New SFR investor looking for cash flow in Texas

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Post: New here. $1 million cash. Want passive income, what's the play?

Post: New here. $1 million cash. Want passive income, what's the play?

Post: New here. $1 million cash. Want passive income, what's the play?

Post: New here. $1 million cash. Want passive income, what's the play?