All Forum Posts by: Jordan Alexander

If your LTV > 80% and you have the cash for it go ahead. This is very subjective preferences and there's no wrong answer here.

What I do not like about paying off cash property is that there's no better treatment for tax purpose.

Also if I'm still on my early productive age, I would rather have 3 rentals with each 75% LTV, rather than having 1 paid-off primary.

The reason is, in 10 years time I would make more money if I invested to several highly-appreciaed house, rather than only one.

I am also one who see mortgage is not a debt instrument, but capital asset for less-risk higher appreciated investment

I totally agree with you Carlos! I believe the majority of people have been taught how to buy liabilities, but in reality we should be purchasing assets to pay for those liabilities.

0 Votes

Quote from @Steve Vaughan:

Quote from @Jordan Alexander:

Thank you for the input everyone! My wife and I have enough money to pay off our primary and be free and clear, but then I wouldn't have the capital to invest in RE (and our rate is only 3.375%). I'm 23 now but I wish I knew even earlier the importance of purchasing assets over liabilities. But there is no point to getting caught up in the past so I can only move forward from here on out!

Money market accounts are paying more than 3.375% right now. Keep the cash for an opportunity.
Congrats on your success so far at 23!

Thank you so much!!

1 Vote

Hi @Danny Scott! Brandon Turner's How to Invest with No and Low Money Down book has a chapter on partnerships. The chapter includes the different type of partnerships you can form (the main ones being equity partnership & debt partnership), and he also includes examples of real life people that have formed these partnerships. This might be a good place to start!

0 Votes

Google Maps allows you to look at every single property in the US.

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Boise, Idaho

It's always good to have someone who knows what they are doing walk you through a transaction, especially if it is your first time. Being an off-market, you could hire a RE agent and negotiate a flat-rate for their services.

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Atlanta, Georgia

Equity comes, equity goes, but the cash will always flow. - Pace Morby

Buy for cashflow! It will allow you to succeed in any market cycle.

7 Votes

It is always good to do market research, but if multiple individuals were telling me a market has high crime rates and is unsafe, then that would be my answer right there.

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Thank you for the insight @Michael Baum! I am so sorry to hear of the three people you knew that went bankrupt. Would you be able to share what went wrong? Everyone always talks about the positives, but it is also educational to learn from mistakes. LTRs are what I would like to do, but I wouldn't mind getting into a couple of STRs. Would you recommend actually owning the properties of STRs as opposed to arbitraging them?

0 Votes

Milwaukee, Wisconsin

2 Votes

Thank you for sharing! Finding the right deal that aligns with your goals is super important!

1 Vote

All Forum Posts by: Jordan Alexander

Jordan Alexander has started 8 posts and replied 105 times.

Post: Paying Off the Mortgage

Post: Paying Off the Mortgage

Post: Books about how to structure partnership?

Post: MLS type software for property searching

Post: looking for home off the market

Post: Cash Flow v/s equity

Post: Alton, TX multi family investment

Post: Airbnb Rental Arbitrage

Post: Paying Off the Mortgage

Post: First Rental Propertyt