All Forum Posts by: John Clark

I've heard this yawner a zillion times.You have to live somewhere, so Buffett's alleged list fails to include imputed income(rental value that you don't pay) and the convenience value of not being at some landlord's beck and call. Oh, and don't think that "saving on the down payment and investing the money" will change much. You have risk of loss (yes, boys and girls, stocks do go down) and you probably aren't going to generate enough capital gains or dividends to cover your rent.

Recalculate and get back to us please. I think you'll find that a primary residence may be a liability, but it's not nearly what you want us to think.

0 Votes

I agree with you, but since there is a dispute and sellers abandon property all the time, I would specify that it must be removed and the liquidated damages for failure to remove.

0 Votes

How did you find out credit score? Company that gave you credit score might be able to give you birth date.

Internet searches might help, too

2 Votes

Absolutely crucial. Many times the school district is what makes a class A a class A.

7 Votes

Charlotte, North Carolina

Quote from @James McGovern:

Political viewpoints are not a protected class in Connecticut and anecdotal observations suggest that tenants who lean left make up the overwhelming majority of those who are evicted. It is rare to find an evicted republican or libertarian. Does it make sense to screen tenants based on their political philosophy?

You may have a problem with disparate impact. Blacks for example are disproportionately left/liberal.

1 Vote

Hartford, Connecticut

Quote from @Steve Balinski:

Hello everyone, I need some motivation. I've been an investor for about 8 years. Done a couple flips and currently own a 4-unit and a 2-unit.

I haven't looked at properties in a long time due to interest rates killing any potential deal in my area (SE WI). Instead of looking for a multi-unit, I started calculating Single Family properties to see what it'd take to make my #'s work.

230,000 starting price (3bd 1.5bth, very low price for this area).

$1900 rent

$4k Taxes

$1500 insurance

$3k all maintenance

20% down

4% interest rate (just to see if even this would hit my #'s.

RESULT = $220 cash flow :-( :-(

How are you all finding single family properties that work? My target is $500 cashflow, I'm not even close.

I'd even consider 2-4unit, but I know my numbers are even further away.
:-(

What’s your appreciation potential? Appreciation comes at a cost. That cost is cash flow.

as others have said, you missed vacancy. The property doesn’t cash flow.

0 Votes

Milwaukee, Wisconsin

Quote from @Victor N.:

Hi everyone, I just formed a LLC in Wyoming and intend to buy properties in Alabama.

I live on the east coast however. Do I need to register my LLC in my home state as well or is a foreign registration in Alabama sufficient?

Thanks.

Every state that I can think of requires that foreign corporations doing business in that state register in that state. Not only does the state earn money, but if there is a lawsuit the plaintiff will know who the registered agent is. Failure to register might even be a reason to hold the principal/beneficial owner (you) personally liable for the foreign corporation’s actions in that state, so don’t try to be cute; just register.

0 Votes

Quote from @Mark Jay:

Hi, we purchased a small lot of raw land last year and have since improved it and added a mobile home. When we bought it we closed through a title company and had title insurance. Now we are selling it owner finance. Do we need to go through a title company for title insurance again, or can we just have a real estate attorney prepare the documents? The buyer is not concerned about title insurance and I thought it was only for the buyers protection but wanted to get some clarification on this. It's $1k cheaper to just go through the attorney.

The buyer is stupid. As for you, that depends on whether you have judgments against you or credit agreements that claim all your assets as security.

0 Votes

Tyler, Texas

You will of course reasonably accommodate, but it will take more than their non-medical say-so about the niece to prevent showing. Where’s doctor’s note and make sure it says you can/cannot intrude for health reasons. Also she is not on lease, so get her out or face eviction.

You are being played.

1 Vote

Quote from @Mark Morosky:

Afternoon,

New investor here with no properties anywhere (other than the one my family and I live in and own) but putting things together to start soon.

Living in Michigan but curious if investing in your first property out of state is a crazy idea. Looking at multiple cities in the Midwest/PA area

Thoughts?

Short answer: don’t be an idiot. Long answer: no, and don’t be an idiot. Education answer: did you notice that some of the people encouraging you to invest out of state with no experience at all work on commission which they receive at sale, not when you succeed?

First, you might not even like being a landlord.

second , real estate is too illiquid an investment for someone who doesn’t know the territory, the laws, or who he is dealing with, at any level.

stay hyper local your first several iterations of investing. Invest locally with someone you trust personally. Get your head examined if anyone tells you otherwise. Have people met success doing otherwise? Sure. People have also walked away unscathed from a front seat position in a high speed head in collision without a seatbelt or airbag, too.

1 Vote

Allentown, Pennsylvania

All Forum Posts by: John Clark

John Clark has started 5 posts and replied 1406 times.

Post: Title: “Warren Buffett Said Buying a House Isn’t a Good Investment — Was He Right?”

Post: Do potted plants count as personal belongings?

Post: Help I screwed up

Post: how important is the school rating when looking for an investment property

Post: Discriminating against tenants legally

Post: I'm losing motivation, can't find anything that works.

Post: Home state registration needed for my Wyoming LLC?

Post: Do we need title insurance when selling owner finance?

Post: Landlord Seeking Advice: Tenant Refusing Showings (Niece's Health) & Potential Holdov

Post: Out of State For First Property?