All Forum Posts by: John Clark

I wouldn't pay off any of the houses. The S&P 500 is up over 20% this year. Your mortgages are all less than 5%. You can earn more by keeping your money invested in the market and letting your tenants pay off your mortgages.

You should speak with a financial advisor about your complete financial picture before retiring overseas. A financial advisor can help you create a comprehensive financial plan to make sure you cover all your bases before you move forward.

Good luck and let me know if you have any questions.

You forget that he’s going to be out of country for substantial periods of time. Stock market he can watch and adjust from afar. Property is much more hands on. He needs to account for property appreciation, but overall needs to reduce property exposure. Hence my advice to sell #3. In fact, a good argument can be made to sell #s 3 and 2, pay off #1, keep some reserves, and hire a property manager.

0 Votes

Atlanta, Georgia

Quote from @Nicholas Dillon:

Hey guys,

I own 3 homes in the Atlanta GA area. I spend half the year in Indonesia where me and my wife rent a home. We have started talking about trying to pay off 2 of our homes in Atlanta, and semi-retire here in Indonesia. If we pay off Home 1, we can live pretty comfortably off the rent of that home here in Indonesia. But, if we pay off Home 2 as well, life would be especially sweet! To do that, I was intending to sell some stock (75k to completely pay of home 1). But then with home 2, I need to get creative. I was thinking about cash out refinancing Home 3 in hopes of using that money to pay off a significant chunk of Home 2. I just wanted to see if I could get some input on this as we continue to brainstorm about how to make our dreams a reality as quickly as possible. Thanks very much for the input!

Home 1-

Bought at $166,000

Year Bought- 2015

Interest Rate: 4.375

Remaining balance: $75,000

Value- $321,000

Home 2-

Bought at $197,000

Year Bought- 2020

Interest rate 3.625

Remaining Balance: $163,379.25

Value-$283,000

Home 3-

Bought at $247,000

Year Bought: 2022

Interest Rate: 4.875

Remaining balance: 226,434

Value-$325,000

Based on the numbers you gave, sell home three, pay off home 1 entirely. As was noted, you don’t have enough equity in #3 to tap, so it’s just a financial self-supporting carry. Is there an appreciation angle to consider? . Depending on how the stock market is doing and rentals, pay down/off home 2. Can you rent out home 2?

0 Votes

Atlanta, Georgia

Quote from @Nathan Frost:

Hey all, inspection is this Thursday. Any tips to get the seller to come down on price or fix things to get the best value? Just trying to see if there are any strategies after the inspection that help an investor get good value back.

All of that is market driven. If the market is hot, the seller won’t budge. Get the inspection report and check comparable properties quickly for condition and then go to the seller with your proposed reductions and be able to point out condition-comparable properties in keeping with your proposed price reduction. If you go in saying that you want a reduction “just because” and have no basis for it you’ll be refused.

0 Votes

Detroit, Michigan

Quote from @Chi Sastry:

Hi BP fam!

I'm starting to investigate more creative financing options to scale faster in 2025 - 2030. Seller financing, Sub-to along with BRRR seem to be the ones that have the most options when it comes to 90-100% financing. I'm keen to learn sub-to - other than Pace, are there other masterminds or options that I might use for some mentroship/education?

Thanks!

Chi

How much experience do you have, and in what?

Where do you want to do this relative to where you are, and why?

My initial reaction is to tell you to get your head examined, but as I get older, I get kinder, so I’d like answers to the above questions before I tell you to get your head examined.

0 Votes

Chattanooga, Tennessee

Quote from @Austin Wolff:

Quote from @John Clark:

First things first: what is your real estate investment experience? If you don’t have several (10?) years of local experience and several (7? 10?) properties under your belt then stay hyper local. For your next several deals stay within a 2, 3 hour drive. Personally walk the neighborhoods and properties before you even consider buying. THEN ask about investing out of state.

This isn't helpful advice for beginners that live in an expensive market and are trying to get started in today's environment. Anyone trying to get started with a market like Los Angeles as their backyard will spin their wheels for years when they could be making an out-of-state investment work.

They can always pool money with others (arrange an exit plan in advance) and buy a house, or house hack. A novice going out of state to start is an absolute recipe for an unmitigated disaster -- just look at the out-of-state threads on this board. I gave the best advice on this thread by far.

0 Votes

4 Votes

Quote from @Vaibhav Bakre:

I am evaluating a $300K house that is about 40 years old. The house is in good condition, AC and roof are 5 years old.

Generally I keep $2000/year towards maintenance when I buy houses that are 5-15 years old in this price range. What is the suggested maintenance for older houses? Any rule of thumb to use while analyzing?

Why are you using rules of thumb and not using the results of the thorough inspection by a great inspector that you are surely using and would be an idiot not to base your numbers on?

0 Votes

This thread should be pinned and tagged as the first to appear when rookies (and even most advanced investors) search for investing out of state. Don’t do it, and here’s why. . . .

6 Votes

Cleveland, Ohio

Quote from @Jay Thomas:

@John Clark This could take another year depending on how long the foreclosure process takes around here. I dont want my money tied down for that long.

What does seller agent suggest as a work around

0 Votes

Chicago, Illinois

Quote from @Jay Thomas:

@John Clark already did but the lien will fall off during forclusure.

Once the foreclosure has gone through and the sale confirmed, you should be able to get the money back from the seller’s agent because the contract will be impossible to perform. Let the seller’s agent know that you expect the money returned to you 30 days after the judgement of confirmation of sale is entered.

1 Vote

Chicago, Illinois

All Forum Posts by: John Clark

John Clark has started 5 posts and replied 1200 times.

Post: I Would Like To Pay OFF 2 of my homes

Post: I Would Like To Pay OFF 2 of my homes

Post: Inspection Tips to get seller credits

Post: Sub-To mentorship/education or mastermind options...

Post: First time out of state investor

Post: First time out of state investor

Post: Maintenance repair costs for a 40 years old house

Post: Who is Bob Stevens AKA Bob Prisco and what's his involvement in Cleveland?

Post: Help, seller went MIA

Post: Help, seller went MIA