All Forum Posts by: Account Closed

So, we(the whole family) leased a castle for fifteen years, in UK. It has 45 suites inside. The land has 25 "huts" outdoor. We put in a Hotel Manager. Furnished the whole place up and got 5 star accreditation. We're pocketing a mil a year, after all the expenses. The lease needed 5 years of rent upfront. We needed high quality furniture and needed to put in a super big management team. Initial costs were 40mil. We got our capital back, just 5 years into it. We're going under renovations, but it's still making money.

This has to be the stupidest experience I have ever had. So, I bought a house in East coast. I rent the house within 2 days of acquiring. I have absolutely no insurance on the property, nothing at all. Two months go by, and the tenant stops paying rent. PM sends her notices and she ignores. We go to the court and fike for eviction. The case goes on for a month and nothing happens. A few weeks after, the tenant was given a 15 day notice or something to vacate the property. My PM says that I get insurance ASAP. I get insurance, and the next day, the tenant burns the place down to ashes. She walks away clean and clear. I submitted a claim for total loss. Insurance gets on my behind. They keep telling me that how bad arson is and how illegal that stuff is. Anyhow, the fire reports and the insurance guys take 4 whole months before they even release the funds. I got the funds and started looking to get the demo done, and get the cleaned. The city wanted asbestos clearance before they could give me a green light for demo. We get asbestos done; turned out that the asbestos removal itself would be 40k. I bought the house for 35k (distressed). I got 72k from insurance, spent fifty something on cleaning the place. The land wasn't worth much, gave it to the city. The worst experience of my life. I'll get asbestos done before I even buy a house. Learned the hard way. Thank God, and great thanks to the PM who anticipated that the tenant might do something. Insurance saved me 90k. It gave me something in return. Totally worth the $250 I paid for the four months of coverage...

I'm no expert, but correct me if I'm wrong. I think that you can make an LLC and give the physical address as a UPS P.O. Box, as it's considered a physical address. The LLC has to be registered in Texas and should have it's own bank account. You can draw money from that account. As the property is not in your name, and the rent isn't coming in your name, AND the LLC is completely based in Texas so the income isn't taxable. If you think that you would have problem at scoring finance, you can get it in your name and then give it to the LLC. I'm no lawyer, nor an expert. I would suggest that you discuss this with someone who knows the law. I'm just telling the stuff that I have seen happening and off you want, I can ask them specifically how they did that and what tax shields do they have...

@Jordan Bochner I have used NREIG for my properties. They are functional in all 50 states and have given me a lot less in rates. They're pretty good and provide good coverage. I had a house in Buffalo, which burned 3 days after buying and insuring. I had a replacement policy and they paid me more than twice the price I bought it for. They tend to take some extra time for releasing funds, but they're a lot cheaper. I have a house insured with them in Toledo, OH. I bought it for 40k(appraise for 80k after a few touchups). I have rent loss coverage, replacement policy and 1mil per occurrence(upto 3mil a year) in liability. The monthly premium is $60.54

@Nadia V. So, Gross rent = rent rate × 12 months = gross rent for the year ROI = Gross rent ÷ total cost of buying the house(including closing costs, inspectors etc) × 100 Now, you can put in the rate for management. If your PM charges 8 or 10 percent, you put that. Check for the average vacancy rates in the area and put that in. Now, add maintenance. If it's a new house, you can put 5 percent or if it's old, you can put in 8 or 10. Add insurance. Now, subtract all these "expenses" from your gross rent. This will give you the net rent. Now, ÷ the net rent with the total cost of acquiring the property. This will give you NOI(Net return on investment). Now, if you're financing, get COC = NOI ÷ down payment × 100 P.S. If you're planning to keep the property for a longer time, consider CapEx for roof, HVAC, boilers or what not. Furthermore, this calculation does not consider mortgage because that is separate, and deducted from the remainder rent. You can subtract mortgage from the net rent and that will give you cash flow.

@Cody Evans I would suggest that you go through different forums. While you're at them, look for replies with people who have a lot of posts and likes. click on their profile and read it through. If you feel some good vibes, send them a connection request and ask what markets they go for. Furthermore, go search those markets and search the providers that told you about. Google the providers and go through all the reviews. Call the provider yourself and start asking questions. Have them send you their inventory and check for deals that actually make sense. You can ask the BP community if that deal is feasible. There you have it. Your first ever deal! P.S. you are looking for a financed deal so the appraiser would be more than enough to assess the house. Plus, you will have an inspector check the whole house. They both check houses for a living and they are a lot better than most of the investors. Now you have a completely checked house without having to leave your bed. Now, compare both of their' s results and remarks with what the provider said. If they match or are super close, you have a good provider. You can stick to them, but keep getting inspectors checking your prospective deals every single time. You can never be too sure. Hope I helped.

I have a similar question. I was looking forward to invest in this area. I was looking for a turnkey provider, so how do the experts have to say about Holton-Wise group? I don't have any prior experience with the company...

I was thinking of the same question.

@Jon Huston we also need the option of deleting posts or replies. I know it has been discussed before, but what if I'm a grammar Nazi and I didn't word the reply with perfect grammar?

@Kyle Martinelli I have always gone for replacement.

In my personal experience, we had a SFR in Italy and then the market dropped, a lot. The prices were almost 25% less than what they were when we purchased and our house burnt. The replacement value insurance helped in getting the right amount of money to get it constructed from scratch. If we had market value, we might have faced almost $100k loss.