All Forum Posts by: Matt Browning

I've asked a couple of my local banks and they don't offer points paydown on their commercial loan products. Has anyone else had success in seller-paid points on commercial deals? I have a few deals that could cashflow if the seller paid down some points and am just looking for creative ways to make deals feasible that otherwise wouldn't be.

Quote from @Andrew C.:

oi. re: Profit First....  I am not a CPA, so you know...just my opinion. But the assertion that you need lots of accounts to separate and budget funds, like my grandparents used to do with cash and baby food jars, is ridiculous. The world has invented piles of software and tools to make budgeting and managing money that avoids that nonsense and the cash-flow management challenges of having a huge number of accounts. Secondly, everyone I've met who's enamored with ProfitFirst seems to miss the point that you can't just 'declare' an amount of profit and that's it - provided you want to actually pay your bills. Wishing doesn't make it so. The point of the book, if there is one, is that doing so may force you to spend less and that may increase your profit. Or, you could just budget and be disciplined about it.

 I don't think the book is really intended for small business owners who have a great feel for budgets and accounting. It's for business owners who kept a pulse on their business, and maybe even personal finances, by just checking the bank account. If there is money, let's spend it. If the account is low, we'd better stop spending. 

I’ve only read Profit First, but a lot of people love Mike Michalowick’s books! He’s a very funny read, but has some great takes on structuring for profitability. 

My inexperienced 2 cents is that the answer might be different DURING your stay and AFTER your stay. If they goal is to hold the property after your gone, then is the profit worth the liability when you're gone and can't better control the situation. If you're looking to sell when you leave, then would the estimated sale price be higher or lower with the pool? In Kentucky pools are only open late May - early September. I wouldn't mess SFH with pools unless I was flipping. In other climates like mentioned previously it's a very different conversation.

Scaling for me is just getting started.. so going from 0-1 property. I'm securing my HELOC now which has plenty of equity and will give me a lot of options for BRRRR, flips or a buy and hold. I feel like my market prove difficult for straight buy and holds, I will likely only be able to purchase deals that will require some rehab of some sort. I would prefer to find a deal where I can get my investment back out so that my HELOC isn't subject to adjustable rates long term. Right now it's prime minus 1%, so that's favorable. But long term it is risky.

Great summary! Thanks for sharing @Anthony Williams

I do have one question, though. You listed your $12k as upgrades rather than rehab. What upgrades did you make? Did you feel like the upgrades were reflected in your new appraisal?