All Forum Posts by: Roy Stange

Thank you. I am learning so much over the last month

Jeff,

>Think of liquidity like an insurance policy that you have to pay for. It is like buying an insured bond where you pay for the safety in lower yield.

Great analogy! My equivalency would be a good credit Municipal bond that you park investment funds when there is no need for the cash. Thank you!

Jeff,

I have the 6 months of payment reserves. As for the credit lines I have too many and have a tendency of not paying them off quickly thinking I need to preserve cash. I guess my issue is: "should I have cash sitting around waiting for the unexpected or have it "working" in an another investment until I need it?" Roy

John T,

Good points. Do you have a "vacancy" reserve or do you expense as it comes up?

Thank you,

Roy

I saw more snow in 5 months, I swear we got 9 feet, then in my whole life! Thanks for the welcome.

Would it make sense to take some of the money from a loan when financing a new property a create a reserve for cap ex, turn over, etc? When designing my model I planned to build up a reserve over time from the cash flow to cover these items. The thought came up when talking with my wife about future needs and how we were going to cover costs that are unexpected. The "beginning" reserve didn't make sense if I was going to hold 5%, rate on a 30 year loan, money in an account earning .20%. Then it did when I thought about things that could go wrong and my "ending" reserve didn't have enough to cover the items.

@Ian Lockwood welcome to Bigger Pockets. It is cool to see someone get excited about real estate.

Thank you everyone. I look forward to learning from everyone here.

Hello everyone,

I am a newbie originally from New Mexico but moved to Wisconsin for a CFO job. Please don't mention the weather variances since I went through worst winter in 30 years. Though I have been in banking for about 16 years most of the focus has been on the deposit side of the business. I can tell you how to manage checking and savings accounts but when it comes to loans my experience is limited, mostly personal. Over the last year I became a voting member of my bank's Internal Loan Committee and Board so I am able to get into the nuts and bolts of what a bank looks when approving/disapproving a loan.

After listening Robert Kiyosaki's Rich Dad, Poor Dad on YouTube it got me thinking more strongly about how my family's going to be set for retirement that includes more than just 401(k)s and IRAs. Real estate has always both fascinated and scared me but I now want to move ahead and get into it.

I am in my educational phase right now since there is a lot I don't know about real estate from the investors side of the equations.

Cheers,

Roy