All Forum Posts by: Lumi Ispas

• Here are some of the points you'll learn at this seminar:
• What small cash investments in improving the property will get you the best returns
• How to maximize income
• How to lower the expenses
• How to get your building finances in order to get you the highest price
  
• Should you sale with vacant units
• Should you put one-year leases in place
• What is curb appeal and how is influencing your sale
• How to increase the property's cap rate
• How to price your property for the highest impact & return
• How to set it up on easy management that can be easily transferable at sale

@Rob Bianco, that's a great problem to have! I know a few people that were in those shoes. You put all your efforts in one goal and now that is fulfilled you are not sure what else is out there. 

The secret is making a list of 100 goals of where you want to go, what you want to see, who you want to move, what experiences you want to have, and assign them in 1, 3, 5, 10 years goal lists!

And a fast way to design your future is to go to a Tony Robbins events "Unleash the Power Within" - That might really inspire you to create the amazing life that is ahead of you! You could take a year off work to figure it out, you could take mini-retirement, you can try multiple businesses or jobs, now that the money is not an issue!

How would you live your life now that you don't have to go by any 9:00-5:00 norms?

Good luck, you have a great road ahead of you!

@Babek Sandhar, it might be right on the West Coast and Miami area. Not in the Midwest including Chicago or most of the country! 

@Steve Horvath, I am seeing at least a couple of possibilities here, depending on your exact credit, long-term goals and income situation:

1. What if you were to deconvert as originally planned and then sale the new home? How will that work out for you? Will you be able to get a construction loan and will you make a profit?

2. Sell & carry the loss - you might save some in income tax. Placing 120K into refi vs loosing about $35,000, depending on how you file your taxes, I suspect you'll fare better if you carry a loss than getting 200K stuck in the property with a very low return. (you'll have to take in consideration vacancies, rental fees & maintenance)

3. Keep the property with the same loan, increase the rents, hope the value goes up so you can get rid of the PMI and your $700/month loss will probably get equaled by your depreciation gained, while you'll continue paying about $10,000/year in principal. If you can still take loans with this property in your credit, use the additional 120K you wanted to use to refi the property to buy an additional property with high positive cash flow.

Good luck to you!

@Louis 

@LOUIS LEATHERS if you got approved for that amount you clearly can afford it. The banks are tough these days and don't give loans to people that have no reserves and can't afford properties.

As you are treating this property more as an investment than an owner-occupied property, I will say go for the highest you can get, because really, who will pay that mortgage: you or your tenants? You'll need some planning of course on becoming a great property management and landloard. Make sure all your leases are on a spring-summer term and that they are stacked, as you don't want multiple leases ending in the same month. Also, in the city you can send a lease extension 60 days in advance, so you'll have 60 days to rerent in case anyone is moving out!

More reasons why to buy the best property you can in the best neighborhood you can afford:

1. 1. Leverage - You are buying this property with no money down!
2. 2. Tax deductions. Can you immaging the amount a depresiation you'll get for 27.5 years? 
3. 3. The more units, the higher your cash flow will be as when the time to increase rents come, you'll increase it for 3+ units by the time you move out
4. 4.The larger the units, the better the property condition and the more desirable the neighborhood - the higher income tenants and easier property management & ease to find new tenants
5. 5. Equity build. At 900K loan, you'll be paing $1200-$1300 in principal per month, that's almost $15,000 a year in savings that your tenants pay
6. 6. Should I even mention Appreciation? Historically properties have doubled in value every 10 years. If this time they take 20 years, do you want double of $900,000 - $1,800,000 or you'll be satisfied with the double of $400,000 - $800,000 as you played safe and did not trust your money management skills to save money for reserves? Just FYI, a fridge or a furnace of a 400K property cost the same as the ones in the 900K property.

Good luck to you! Great problem to have!

@Lawrence A. Kovacs III, Congratulations on an amazing goal.

There are many ways you can do this. I can advise on one way that long term will pay for both your father and your own retirement as it will give him the positive cash flow to live now while the properties are getting paid off to take care of your own retirement.

Step 1: Determine how much money per month your dad needs to retire. 

Step 2: Determine his assets and liabilities. Does he have any pension funds he'll be able to draw cash out? Does he own a home that is paid off or with a small balance? If he's renting, will he still live there after retirement or where will he move and what will be his monthly rent & expenses? 

Step 3: As he still works right now, can he take a mortgage and depending on what and if he owns any housing, can he buy a multiunit property with a 3.5% down, owner-occupied, FHA loan so he lives in a unit and rent the others to live for free?

Step 4: If you took care of his housing through either Step 2 or Step 3, can you either sell one of your properties or take a HELOC to pull out cash and buy investment properties that will give you enough positive cash flow that it covers your dad's expenses? - Bonus for you will be that while you'll be gifting your father your cash flow, you can use the Depreciation and tax deductions on this property or possible multiple properties to lower your own tax base, so you'll pay less income tax on your income while building your equity through the principal paid off by your tenants.

Good luck to you & your dad! 

@Victor Mays I will send a PM with the information of a few great ones.

@Mido Ali, the market is not stagnant. You make money in real estate when you buy for the long term through positive cash flow, taking yearly depreciation, building equity and appreciation. 

Real estate is won for sure when bought right as a long term game.

Flippers and wholesalers make money in any market by buying the properties for cents at a dollar.

For you, define your strategy, and if you buy for the long term, make sure you have positive cash flow, the area you are buying is growing, and the property is in great condition, and you should do well. 

@Lazeric Lott Jr, I am sure you've heard of house hacking. If you don't own any real estate, you start with buying a 3-4 unit building with a low downpayment, possible 3.5% down with an FHA loan, or even 0% down if you are a veteran and buy a property where the rented units' income is higher than all the building's expenses and pays for the unit you'll occupy so you can live for free or for a low monthly cost!

Living for a year or more in your first investment property will help you acquire the skills you'll need later in life: managing real estate properties, managing contractors, finding tenants, etc.

You are invited to a RE seminar - "How to retire early and attain financial security with a few Real Estate purchases within 3-5 years!"

When: 05/25/2019 (Saturday) - 10:00 AM -12:30PM
Where: 1161 W Madison St. Chicago, IL
RSVP Link: Please RSVP here, https://luminitaispas.com/seminar/

Here is the value you are going to receive by coming to my seminar.
- Learn how you can live for free, and never ever pay for your housing again!
- Learn the strategies you need to learn to become a millionaire.
- Learn how you can retire early.
- Learn why & how Real Estate can be a safe investment when bought right.
- Learn how to keep as much as $10,000/year from what you make by paying less income tax when you buy Real Estate.
- Learn to think like an entrepreneur.

- Network with like-minded individuals.