All Forum Posts by: Mark Limke

No experience with Section 8, so forgive me if this is a stupid question: if he were to be acknowledged and added to the lease, does that disqualify her from her subsidy? Which would mean she cannot acknowledge him. Is that how it works?

Hi, Nikolas.

It's my understanding that forced appreciation applies to multi-family, over four units, so property that is valued according to its cash flow, not using comparable properties.

Forced appreciation, to me, means that you find a way to improve the cash flow, either by raising rent reveue or decreasing expenses or otherwise improving the performance of the property. By improving performance, you are "forcing" the value of the property to appreciate in value.

It often comes into play at purchase time when you recognize you have a property that is not living up to its potential, and you pay less that what you know it will be worth with your improvements. If you buy it, improve it, then sell it, you will have forced appreciation in value.

If you buy, improve, and hold, perhaps you will be able to refinance and then take cash out of the deal based on how you improved its performance.

I'm not clear on what the 10 percent numbers you are referring to mean, or how you would purchase forced appreciation. Maybe the 10 percent is an illustrative cap rate someone was using to value properties?

I suggest you read this article. Ben Leybovich is a great source for this topic.

https://www.biggerpockets.com/renewsblog/2015/12/01/forced-appreciation-work/

We are wired to think we are smarter than average, and can see through scams, so when we find a program we think will work, and our enthusiasm is pumped up, out comes the credit card. 

You are exactly right: common sense tells us that if their real estate techniques were so lucrative, why wouldn't they just hold the information closely and enrich themselves? Oh, yeah, they are humanitarians, and want EVERYone to be rich with them! Riiiiight.

Rewards come by inheritance, by accident, by criminal behavior, or by hard work. And why pay for something you can get here for free?

Hi, Rachelle. Welcome to BP! You know what they say, get enough education to know what you're talking about, but then go do it! What's your area like, where you plan to do your investing? What aspect of investing appeals the most? Besides "do something," another bit of good advice is "don't do everything, pick one thing and focus."

Regards,

Mark

That would be frustrating, no doubt. I'm sure you've heard on the podcasts that people in large metro areas often have better luck working in the outer ring, the bedroom communities, where the competition isn't as thick. Seems like good advice, go where there are more real deals.

Hey, Scott. Interesting question. You've got me curious, though. You're a licensed real estate agent, if I read your profile correctly. My advice to my relative would not be to read a book, it would be to engage an agent I recommended to them, someone I trusted and knew was capable. And I'd help them, if they asked me to. 

Maybe that's coming in your plan, but you didn't mention it. 

Hey, Fhanillia. Help us put it in perspective, OK? What will you do with your license, once you get it? Be an agent? Use it to support your investing career? Reason I say that is because a license is not required to be successful in investing. So if you never get it, you are not stopped in your goals. And if you get it, it is more of an expense than an asset for a while, and you can always try again. So keep the failure down in size, it's just a fact, doesn't define you. We all fail at stuff, it means we are trying.

Now, to passing: get a partner who cares about you, and is smart. Take the parts you struggle with, and (this is key) EXPLAIN them to someone else until you both share understanding of the small topic. That will re-wire your brain a bit, and you will sort it out. If you can't explain something, talk about it with the person, until you do. Go Google it for some other approach to the topic, if the text you're using isn't clear. Ask an agent friend for help understanding if you still don't get it.  But teaching a topic is the best way to master it.

If you can't find a partner, then write out your own explanations, to yourself. You're still doing the same teaching, but not as effectively, since no feedback.

That's my tip. I almost always pass tests like these, my whole long life, and miss either none or just a couple, so I know what I am talking about! This works!

Josh, call your local real estate office (pick your favorite) and ask them who they usually use. Then try another brand. After a few calls, you'll have several options. Ask for their regional contact from the company, too. I know who I'd give you for my city.

Best of luck...

It's not a book, per se, but have you listened to this podcast?

https://www.biggerpockets.com/renewsblog/2015/03/19/bp-podcast-114-how-to-invest-in-vacation-rentals-with-scott-sutherland/

Hey, Stuart. Welcome to BP. I think folks would love to help, so why don't you tell us a bit of your background and what you've already done to prepare. Read any books? Listening to podcasts? Whatever, just give us some context.

Best of luck, and I'll stay tuned for your reply.