All Forum Posts by: Ken Primrose

Thanks Dave, love the insight. This is what I was looking for. Thanks for taking the time. 

Ashish, thanks for the reply. This is perfect a healthy window to shoot for. 

I know. A line of credit would cost me 8.25 currently and I could consistently lend it at 12-15 probably. Maybe 5% would be my threshold but still would take putting lots of cash at risk for pretty moderate returns (by real estate standards). I know there are some really clever people out there who have cracked the code on converting equity into cashflow without just selling properties. Always open to new ideas. 

Thanks for the response. Be sure to loop back if you come across anything interesting. 

Any thoughts on best practices for converting equity in property into cashflow. I don’t mean refi, heloc, sell or 1031. I understand how and when to access the cash from a property. Just wondered if anyone had clever ways they regularly converted equity into cashflow without selling the property. I’m looking at private lending to flippers with a line of credit or using a line of credit to put a down payment on a new cash flowing property (which is extremely hard for me to find right now) but with a line of credit as a down payment I would be financing a new property at 100% at unfavorable rates. I’m not against it but it would still need to cash flow which is unlikely in my market. 

Any ideas out there?

What is considered a good goal for return on equity in a property? I’m trying to construct a window when I should start messing with a property to move the ROE back up once it’s accumulated “too much” equity. For reference, I’m in the growth phase of real estate investing so maximizing my returns is a clear goal. I realize down the road letting if I am trying to simply pay mortgages off the ROE  is no longer a useful gauge. 

Wondering if anyone had some windows/rules of thumbs they use they would be willing to share. 

Thanks!

Does anyone have a rule of thumb for how much cashflow one should be getting for every million dollars of debt on real estate?

I’m about to approach the owner of an off market property. He doesn’t live nearby and had (long ago) a reputation of being difficult. His downtown storefronts have sat empty for many years. Sometimes helps to just hear others approach before I jump in. 

Thanks I’m advance!

Anyone ever had a commercial loan that each month increases your payment of interest and decreases your principle payment on a fixed rate mortgage? I caught this from my bank and they told me the bank doesn’t set the payment schedules- their software company does. I’ll have to wait to hear from them.

Anyone ever had a commercial loan that each month increases your payment of interest and decreases your principle payment on a fixed rate mortgage? I caught this from my bank and they told me the bank doesn’t set the payment schedules- their software company does. I’ll have to wait to hear from them. 

Nathan, thanks for the feedback. Just clarifying- I didn’t make the comment about the renewal fees. The “quote” looks like it’s ascribing that to me. I’m just interesting in getting some feedback from different folks to inform my perspective. The feedback has been helpful. Seems like this is an area of emotion for both PM’s and owners and deserves some thought and light treading. 

Nathan Im interested- how do you charge for renewals?