All Forum Posts by: Karl Denton

 I totally get where you’re coming from, especially with the timeline in mind. 

One aspect to consider is how each property’s cash flow can work for you. If you can leverage the cash flow from your rentals to cover costs and reinvest, it might allow you to scale more quickly. Balancing that with your desire for stability is key. You could also pay down, but see what may allow you to scale faster. 

Also, keep in mind potential market fluctuations—having reserves can help you navigate unexpected challenges. But it sounds like you’re aware of that and are ready to stay flexible.

Ultimately, it's all about what feels right for you and your situation. If you’re confident in your approach and have a solid plan, that’s what matters most. I’m looking forward to seeing how things unfold.

From what I’ve seen, some flippers are still willing to pay buyer’s agent commissions, especially if they want to attract more buyers and make their properties more competitive. Offering a commission can help ensure that agents are motivated to show their properties and market them effectively.

However, there are also flippers who have found success by not paying buyer's agent commissions. They often do this by marketing directly to buyers or leveraging platforms that connect them to potential buyers without involving agents. This approach can save them money and allow for a more streamlined transaction, but it can also limit their reach.

That's frustrating and im sorry you're going through this right now. That being said, you need to carefully Review Your Documents, Start by reviewing the promissory note and any other documents related to the loan. Look for clauses regarding default, collateral, and communication requirements.

1. Document Everything: Keep a detailed record of all communications with the investor, including dates, what was discussed, and any updates you’ve received. This can be crucial if you need to take further action.
2. Attempt Further Communication: Before taking any drastic steps, try reaching out to him one more time. Explain your concerns about the property sale and the lack of communication. Sometimes a direct conversation can clarify things.
3. Consider Legal Action: Since the note is in default and you’re well into the second year, you may want to consult with a real estate attorney. They can advise you on your options based on your specific circumstances, including how to proceed if you believe he may be trying to delay repayment or if he is indeed facing bankruptcy.
4. Assess the Situation: If he is experiencing cash flow issues, he may be trying to find a way to resolve them. However, if communication continues to be lacking, or if you receive inconsistent updates, it’s crucial to be prepared for the possibility that you may need to pursue legal recourse.
5. Protect Yourself Moving Forward: If you do recover your investment or start new ventures, consider more stringent due diligence in the future. Look into investor backgrounds more thoroughly and perhaps use legal contracts that offer stronger protections and even tie to personal assets, many will always try to use the LLC to protect themselves, but serious investors will sign a note personally and have collateral to sometimes back it.

I hope you find some clarity soon. It’s tough to be in a position of uncertainty, but getting informed and organized will help you navigate this situation. Good luck!

Congrats on being in such a strong financial position to start your real estate journey! It sounds like you're on the right track with a clear goal in mind 8-10 properties and leaving the W-2 in 3-5 years is ambitious but definitely doable with the right strategy.

When it comes to whether to be aggressive with paying down one property versus spreading it across a few and paying down slower, it really depends on your risk tolerance and long-term goals. If limiting risk is a priority for you, spreading your capital across multiple properties can diversify your investment and lower your exposure to one single property or market downturn. Plus, leveraging multiple properties can help you scale faster, and the cash flow from several properties can compound over time.

That said, paying down debt aggressively on one property could provide peace of mind and financial security, especially in an uncertain economy. It reduces risk by lowering your leverage, and once one property is paid off, that cash flow can then help pay down others even quicker.

A balanced approach might be to focus on acquiring a couple of properties initially while keeping some reserves, and then reassess based on how things are going. Keeping an eye on the market and maintaining flexibility will help you pivot as needed.

Good luck, and congrats again, seems like you're setting yourself up for success!

Im so sorry your in this situation, its tough when everything you have is in Florida that gets hit hard some years by hurricanes. Iv heard many stories and I feel for you. Dont give up and keep hustling and find a way to make some income during this time. Im no means an insurance agent but I recommend you talk to yours asap...however....In general, business income loss coverage typically applies only when the underlying cause of damage is covered by your policy.

Since you mentioned you don’t have flood or wind coverage, it’s possible that your claim for lost income may not be approved. However, it’s always best to check directly with your insurance company or consult with a public adjuster, they can help interpret the fine print and ensure you're not missing out on any potential coverage. 

It might also be worth looking into any federal or state disaster relief programs that could provide assistance, especially if the storms have been declared federal disasters.

Hang in there, and I hope you find a solution soon!

Congratulations on your first one out of state! It’s always inspiring to see someone dive into new territory and come out with such success. Montgomery sounds like it’s treating you well.

You really nailed the numbers on this one. That $32k purchase price, combined with a total cash investment of $58,354, and a sale price of $105k is solid. I know you mentioned leaving a little more money in the deal than expected, but with $500 in cash flow and a $1,200 rent, it looks like you're still in a great spot.

It’s also impressive how you managed to find the right contractor, especially on your first out-of-town project, those connections can make or break a deal, so kudos for finding one who’s an investor too!

I'm also right there with you on the BiggerPockets tools, they make running numbers and analyzing deals so much easier.

Looking forward to seeing your next deals and hearing about the growth in your portfolio, seems like you’re on a roll! Keep pushing, and I’m sure that 100 doors goal is closer than you think!

That's amazing congrats! 

Congratulations that's fantastic to hear! Good luck on it, what's the numbers look like? Cash flow? Value add?

Great feedback, he's a really down to earth guy. Love chatting with him every year!

Saw this a little too late, next year I'll be sure to hope on here earlier before the event! Thanks for sharing though, hope it was fun!