All Forum Posts by: Account Closed

Spencer I'm so proud of you buddy! You deserve this, great work. 

I know how much of a burden this was for a while, I'm glad you stuck with it.

The regulatory landscape really is the biggest question mark.

How do you tokenize this equity without it being classified as a security? 

I think it will all be ironed out eventually, but it may take some time. 

It's only a matter of time before blockchain technology penetrates the real estate market.

The days of intermediaries in this space are limited in my opinion. 

I really see the tokenziation of equity will quickly gain traction as an alternative to using delayed financing or refinancing to get money back out of your deals. 

This thing is still in its infancy, but I intend to be on the forefront of it. 

Hey Ayen,

Most banks don't do a HELOC on investment properties, but if they do they generally provide

a lower LTV to mitigate risks. If it's a SFR you have a shot, if it's a condo probably not.

I would call your bank or area credit unions and speak to them about their terms. 

Hey BP, can anyone recommend a good real estate agent in Fayetteville, North Carolina? Thank you. 

I'll give you an example of what is tax deductible on a rental property. (from my own taxes).

Mortgage interest

Depreciation 

Taxes

Insurance

Expenses associated with maintaining rental 

In some instances, even if you are cash flow positive on a property, you can take a tax loss after you factor those items listed. 

I'm wondering if anyone could explain if I should opt to put each property into its own separate LLC or just get umbrella coverage for all of my rentals for maximum asset protection?

Also, if said rentals are in an LLC, will the income/debt from incurred from these properties count towards my debt/income ratio?

Any Brandon Turner book. 

Hey guys, just wanted some input from you all to see if this is a good way to structure an offer price.

Let's make the assumption that I'm shooting for 8 percent cash on cash (after expenses) and it's an all cash offer.

Property is listed for $100,000, Rents for 1000 per month 

Expenses

200 HOA costs

100 insurance/taxes

100 repairs/cap 

60 bucks vacancy (6 percent vacancy)

self managed

Total expenses:  460 per month

Monthly Cash flow:  540 per month

Yearly cash flow:   6480

Cash on cash return:  6.5% 

So If I reverse engineer this equation, in order to achieve my desired 8 percent cash on cash returns 

Purchase price X

Cash flow per year 6480

Cash flow percent target .08

Purchase price =  Yearly Cash flow/Desired cash on cash return

So 6480/.08 = 81,000 

This equation gives me a purchase price of roughly 81,000 to hit my desired cash on cash returns.

Is this a good way to justify my offer price? Is there anything I'm missing? 

Any feedback would be appreciated, sorry if this is a jumbled mess. 

I appreciate the advice Alex, I completely agree that now is the time to build and grow.

Another concern I have, is that I may be capped at 10 loans. Besides owner financing is there a way to raise that limit?