All Forum Posts by: John Acheson

I personally believe that the worst time to seek financing is when you need it!

Instead I would build a 800 FICO and season your LLC to an 80 PAYDEX.

After that you can approach any lender with confidence :)

PS if you have student loans get them on income based repayment

BEFORE your net income starts to go up from your 1st real job!

Australia is already down 30-50%, Canada cities down 25%, China is way down, California offers are down at least 25%, New York is either already down and offers are at least coming in 25% off ask, volume is down almost everywhere, and in general I believe that Amazon's $2000 share price in Aug marked the top of the market, so it's over!

I believe we're in a downturn that will last about five years followed by another rise.

I would SELL SELL SELL ANYTHING AND EVERYTHING that you can't hold 10 years,

i.e. primary home, rentals that are in the red, equities in the red, assets, etc.

You should be able to buy everything back later for less, if it's emotional!

Have you searched passive income on YouTube? Lot's of youngsters on that platform sharing ideas and what I've noticed is that the lower level gurus preach passive income but the higher level multi-millionaires tend to dismiss it. And if you listen to some $100M advice you find the reality of earning a million per year is hard work all the time, i.e. work 80 hours per week, read 10 books per month, grow your business and brand in the same industry for at least 10 years, cut spending (which you can do), etc.

I've been hustling for over 25 years and have yet to come across any significant passive income streams. They were all small incl. interest, capital gains, rewards, rebates, incentives, etc. The big hit was real estate but it wasn't passive and it wasn't a stream, it was timing and luck!

The other thing is that I believe we're in a downturn and will be for years, so the only passive income stream I see offering low risk and steady return is some select corporate bonds purchased at peak interest rates. Then you can collect passive interest on the way down and sell for a capital gain when interest rates bottom out again.

If the market is head down for let's say five years, I would avoid dividend income from stocks, because the capital loss will probably put you in the red, unless you can hold til the top of the next cycle.

If you find true passive income with low risk and little capital (assuming you have student loans like myself), please LET ME KNOW :)

Around here in a the Western Suburbs of Portland, Oregon, developers slowed down SFHs and condos a few years ago. Almost every new project is apartment buildings with a just few commercial projects here and there. Every time I drive by one of these 100-500 unit brand new apartment buildings, I try and guess the sale price with rents running $1500-2000 and the number always seems to be in the tens of millions. Don't apartments get valued as a multiplier of rent, based on interest rate investment comps, correct me if I'm wrong?

Our area has tons of tech jobs and there's a constant flow of people that move in from out of state so it looks easy to sell these brand new $10-50M buildings but who knows if there's a downturn and rents drop? 

Tyler, after Lehman you need both a 750+ FICO AND a 80+ PayDex which will require a EIN/DUNS maybe reporting vendors/suppliers or you can go directly into business credit cards if you have a good FICO and then credit lines/loans after those are reporting. Building credit is probably the most important thing when interest rates are rising and it's fairly cheap if not free since all the knowledge is available online. Good luck, John

Those sound useful if an investor has all capital gains

income which doesn't seem to qualify for income...

Since lenders won't take our capital gains for qualifying income

and we don't have rental property income,

our broker is offering bank statement financing.

What is your experience with this for residential

and did you refinance at a later date

with what kind of qualifying income?

I would recommend building up at least a 720 or 750 or 800 FICO for free

as soon as possible so that you can open the most financing doors

anytime during this project and beyond.

Another option if you are bootstrapping is to use bank bonuses

to get free cash and start a LLC to build business credit

that can help you get much higher limits

at places like Lowe's, Home Depot, etc.

Google any of the following for free help:

Bank/Credit Card Cash Bonuses

CreditBoards business credit

CreditKarma free credit reports

Home Depot/Lowe's business credit card

Michael, that's a scary Forum Title at the beginning of a downturn.

Australia, China, Canada, California, New York have already dropped

and the big banks have recently laid of 100s of high paying mortgage jobs.

With interest rates over 5% for most average SFH buyers, are you leveraged

fixed at 3-4%? Can you handle a vacancy at the same time value drop 25-40%?

If not, generate cash and build credit profiles for free i.e. 800 FICOs and 80 PAYDEX LLCs

because when you need to raise money, the more options the better.

If you need any advice on building credit effectively on the cheap,

feel free to reach out :)

This is my opinion and I'm not licensed,

John Acheson, MBA

After rates hit 5% there a lot of quiet areas around the USA.

China, Canada, Australia, California, New York are coming down already.

Fear has not set-in yet, but doesn't it feel like something big has happened?

The big banks have laid off 100s of mortgage related high paying jobs,

so I would say that we are in a down turn and all it will take is fear

to take us into a recession. SELL SELL SELL build credit and a LLC!!!