All Forum Posts by: Eugene Beard

@Pratik P. is just being practical because normally it takes awhile to connect with commercial buyers(or any buyers for that matter). But obstacles aside buyers come running when its a good deal period. so run the numbers on repairs, possible tenants for the property, Cash on cash returns. Make sure what your looking at is actually a deal. If it has meat on the bones for them to make a nice profit( depends on the profit criteria) then they will give you a shot. #1 make sure you have a deal worth having #2 market the deal to REIA's and other places until you find a interested buyer.

even if you dont find one for that property in 6months(and the contract falls through after 6 months) you would have gained a lot of knowledge and connections that could help further your goals and career in the business. Good luck!

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Cozy.co, cost them $50 bucks

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I would like to know as well!

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Happy to help!

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that is such a broad question so yo know what the number one answer is right?

It depends.

it depends on your investing strategy, it depends of what market your investing in and most importantly it depends on you goals.

for example one investor can say i like working with people in D areas so im fine with 6% COC return but my ROI has to be 20% in 5 years.

The next investor that wants turn key properties SFR with 10% ROI wouldnt wish that criteria on their worst enemy.

So what people say on here wont help you make a decision about your criteria.

NOW that being said heres my 2 cents! I like to try to get $150 per door for a 4 plex with a 10% COC. IDC much about appreciation or have a set ROI.

I figured out what i wanted by analyzing rental rates in area along with prices to figure out what is possible from jump and started from there. Because my goals are aligned with staying in a specific area and not out of state investing. but if the numbers you want to get ($150 a door & 10% COC) are only out of state you can either follow your numbers or stay as a local investor. but if you dont know which type of investor you wanna(aka your goals) be its gonna be impossibel to make that choice

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Like @McKinley Crowley said SEO results usually take awhile to really see from a company or from yourself alone. when judging a company i would ask them about their conversion rates of past customers over a perios of a years or two. that will let you know how much in sales generation thier other customers had. That should give insight but they might push abck due to those would be your expectations and the truth may be off. But i would say conversion sales rates from the cost of 1,000 keyword alerts(for example), how many acutaly calls do u get from that? or how many people view the website from the alrets and then how many of those people acutally purchase something.

hope that helps i dont know much but i know what I would like from a SEO company as well lol.

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Originally posted by @Jeremy Z.:

Originally posted by @Thomas S.:

@Eugene Beard

Im curious what is your exit strategies

I have invested the equilivant of the value of all my properties in income funds (mutual funds) so to liquidate I sell and pay off the loans with monies received. Cash out some investments to pay capitol gains. The cash I have invested all came from tenants paying rent that would have paid off the properties.

In reality I could have paid off every property but chose to double my investment returns rather than park my cash in a property. Bottom line is I prefer to invest money rather than hoard it.

My method is as risk adverse as paying cash for properties but far more lucrative.

If both the housing and stock market experienced a major correction, I would think you would be twice as exposed compared to the investor who owns the property outright. Am I missing something?

Yall can correct me if I am wrong but I dont think thats the question u wanted to ask. because neither strategy is better than the other in your question. If u naturally have ur money in 2 things and I have my money in one of your two things. If both things go down then of course we both lose 100%.

If you are asking if one strategy is riskier than the other then the answer is mine is but thats only because of diversification alone.

I think what you are asking is what is the riskier strategy. the only time my strategy would benefit me and hurt him is if the banks start having problems. for example if the bank calls the loan due for some strange reason he would be in trouble as opposed to me where I dont have a lender.

Leverage laons= control but not ownership

no Loans= control & ownership

Hope that helped and im not crazy wrong. LOL

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Originally posted by @Thomas S.:

@Eugene Beard

Im curious what is your exit strategies

In reality I could have paid off every property but chose to double my investment returns rather than park my cash in a property. Bottom line is I prefer to invest money rather than hoard it.

My method is as risk adverse as paying cash for properties but far more lucrative.

My strategy is buy & hold to free and clear small multifamilies. Scaling my portfolio overtime with profit generated and my w2 job.I never considered using the earnings from the home towards stock to pay if off later. Thats interesting.

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Oh okay I got ya! thanks for clarifying!

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Originally posted by @Joe Villeneuve:

Originally posted by @Joe M.:

Originally posted by @Joe Villeneuve:

Sorry @Eugene Beard but you don't realize the savings until after 20 years...and then you only realize in small increments. The full savings you speak of happens in year 30. How many real estate investor will hold onto their property that long.

This is an illusion. For those first 20 years you are coming out of pocket at a higher cost then if you just let your tenant pay off the mortgage for you.,,that's out of YOUR pocket.

Run the actual numbers:

Total cost paid out of pocket in principle and interest during each year.

Total cost out of pocket after payoff (assuming you are paying off early)

Amount of cash saved each year offsetting the extra cash you spent during the 20 years.

The questions I have are these:

1 - When do you break even?

2 - When do you realize the savings?

3 - When you break even, and realize the savings, do you still own the property?

4 - If the answer to #3 is yes, during that 20 year period, what extra costs are added to the total based on repairs, etc...that also must be caught up before you break eve...and start to actually make money?

Hey Joe, really appreciate the post. These are the type of posts that make me think outside of my comfort zone.

I get the majority of what you are saying. The one thing though that I guess I dont though is if I pay off the 55-60k now, at rent being $850 a month, I am paid back in 6 years.

Isnt that a good thing instead of the 20 years left? I get that is a cost to me, but seems like more useful to have 850 coming in every month (hopefully) instead of $150 (and not having to pay $700ish every month in mortgage).

I guess what I am trying to say is if paid off, year 6 is when its the golden goose for me, if not, I have to wait til year 20.

Hope that makes sense lol

OK. The best way to answer this is with actual numbers. Here goes:

First, an option that was mentioned earlier, but not in your list of options originally given is to take that same $60k and use it as a DP on 3 more properties just like this one. Here is how that would work, comparing a Payoff to investing it:

Invest the $60k Year    Payoff
$   0 Starting -$60,000 (You are stat at a negative of $60k with a payoff)
$  7,200 Year 1 -$48,800
$14,400 Year 2 -$38,600
$21,600 3 -$28,400
$28,800 4 -$18,200
$36,000 5 -$ 8,000
$43,200 6 $ 2,200 (You are finally positive)
Now it is usually somewhere between year 7-10 that the property is sold or
refinanced due to CAPEX costs jumping in, and/or appreciation.
$50,400 7 $12,400
$57,600 8 $22,600
$64,800 9 $32,800
$72,000 10 $43,000

Where would you rather be?

The "invest in 60K" column. you're saying the 60k is earning $7200 year after year. thats 12% increase every year. so your saying that 60k will make 12% in more properties or from another source (like stocks)?

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All Forum Posts by: Eugene Beard

Eugene Beard has started 8 posts and replied 103 times.

Post: Wholesaling Commercial Property

Post: Background and criminal check and credit report

Post: Establishing Credit Lines

Post: How do you gauge a successful SEO company?

Post: How much Cash-on-Cash ROI and Cash Flow is enough on BRRRR?

Post: How do you gauge a successful SEO company?

Post: What would BP do? Paying off vs other options

Post: What would BP do? Paying off vs other options

Post: What would BP do? Paying off vs other options

Post: What would BP do? Paying off vs other options