All Forum Posts by: Christopher J Lemmon

Can some with long term experience explain how interests and cap rates can be inverted, stay inverted and investors keep making money?

Here is another way to ask this:

If it cost me 6.5% to borrow money but the cap rate is only 5%, —— how does it make any sense to buy under those conditions?

CDs are at 4.5% —- Why is would I ever take on all the risks and headaches to make a mere 5% over 4.5% with zero headaches and zero risks?

Can this stay with way for very long? What do experts and experienced investors see up ahead with this situation?

Can anyone help me grasp what is happening and where this market is headed?

Thanks I’m advance.

Can some with long term experience explain how interests and cap rates can be inverted, stay inverted and investors keep making money? 

Here is another way to ask this: 

If it cost me 6.5% to borrow money but the cap rate is only 5%, —— how does it make any sense to buy under those conditions? 

CDs are at 4.5% —- Why is would I ever take on all the risks and headaches to make a mere 5% over 4.5% with zero headaches and zero risks? 

Can this stay with way for very long? What do experts and experienced investors see up ahead with this situation? 

Can anyone help me grasp what is happening and where this market is headed? 

Thanks I’m advance. 

Can some with long term experience explain how interests and cap rates can be inverted, stay inverted and investors keep making money? 

Here is another way to ask this: 

If it cost me 6.5% to borrow money but the cap rate is only 5%, —— how does it make any sense to buy under those conditions? 

CDs are at 4.5% —- Why is would I ever take on all the risks and headaches to make a mere 5% over 4.5% with zero headaches and zero risks? 

Can this stay with way for very long? What do experts and experienced investors see up ahead with this situation? 

Can anyone help me grasp what is happening and where this market is headed? 

Thanks I’m advance. 

BP, 

I am a small investor with about 9 rental  units. 
Nothing too large. But I just moved to KC and I need a new person to do my taxes. I netted about $25,000 on my rentals last year. I have another w-2 job and want to maximize my deductions and write offs. I have been investing since 2013. 
For the size of my rental portfolio does anyone know a good CPA to do taxes? I know I need help and guidance in this area. 
I would much appreciate recommendations. 
Also what’s a typical cost for tax consultation? 

Chris Lemmon 

ISO, I am interested in internet based lenders who finance commercial apartments down to 6 unit size. I have a property I am already interested in. But I have never tried for anything larger than a 4 plex. What do you all find are good lenders to talk with?

For all the most experienced and knowledgeable investors out there what does the new Biden administration mean for REI? Of course no one can answer that definitely. But what are you looking out for? What types of investing could be better in RE? What might be harder or worse under Biden? I know there are some gurus out there who have been through a cycle or two of administrations and know what a change in the White House can mean for the small investor. Thanks for any comments in advance.

@Jason Powell

I have a section 8 tenant and they pay their utilities. This sounds like a value add opportunity. I had to negotiate with section on all that rent amount who pays utilities and what is FMR in my area.

When each lease comes up for renewal this could probably be addressed. It may turn into an opportunity for you. Perhaps the current owner is losing money because they failed to negotiate a better deal with Section 8. Good luck!

Sell and invest in a different state. Your tenants have you over a barrel and they know it. IL and Chicago specifically has some of the most tenant friendly laws in the country. Add COVID 19 on top of that and you have no chance of getting any rent from them unless THEY feel like paying you. 

@Jamia Stevens

One option is to bank your paycheck and put your living expenses on no interest credit cards if you get those offers. If you can save 67% of the down payment that could help you close the gap faster. Also, keep in mind you can use rent profit to pay the credit card back off after you buy the property and finish paying it off before your no interest period expires.

That can speed up buying a property and gets you going as an investor. I have done that several times to get a property.

Drama!!! I feel your pain!