All Forum Posts by: Patrick Ryan

Ever considered BRRR? I know flipping can get stressful as I've completed and profited 5 last year. I've studied tax code and see some definite advantages in holding and utilizing BRRR. Ten years down the road I feel like you can be chilling on a beach getting paid by your tenants.

Good Call Greg S. I think its important to realise that instead of investing the money into paying the property off, you should get another property, as the ROI would be better than earning a 4.75% (or whatever your interest rate on the refi is). Its basically sounds like your ROI is infinity (except for your sweat equity and time) so infinity beats 4.75% all day.

Of course at some point in the game, you are going to stop investing in new properties, so my advice is to sit down, analyse the NUMBER of properties you want to determine exactly how much net worth you want to accumulate. 

My number is 25 properties. I'm currently at 5 and have a BRRR refi coming in to bump me to 8. I've calculated 25 properties will accumulate to be roughly $4 mil in equity when I cash them all out 20-25 yrs from now, and thats my number I am happy with. Determine your goal first, then make the moves to get you to that number of properties. Once you reach the number of properties you want, THEN start paying them off.

Hire a management company, so that you don't have to bear the brunt of all management expenses. He seems unreasonable. If it's 50/50 on cash, it should be 50/50 on work. If he wants to do less work, and you are both fronting the same amount of cash, you need to be compensated for it. Maybe he could pay you $60/$80 per month per property to manage. 

Not to be a sales guy, but if your group decided on buying a rental or flip, I am willing to offer free property management for a year if you want to buy in the twin cities area. (Excluding north Minneapolis)

Hi fellas, I'm from GF, ND. I noticed you were saying the market has softened since 2014. Careful on buying there as the market corralled with the price of oil, in my opinion. With oil on the slide, it creates a risky environment. Fracking oil there is more expensive than the Mideast can pump at, so that area's oil economy will shut down before the Mideast, Russia, Iran, etc.

Cliche Rick H! Whoa!

I second what Aaron McGinnis says. If it goes to court, the judge will view what's in writing. My advice is to be very meticulous On detail in the contracts. My second bit of advice is to shop hard on who to use. If it costs a little more to go with someone that has a good rep, go for it. Surely it's worth the extra money at this point, right?

Why risk it? Focus on your roots, and you will bear fruit. $8k is ok but not great. You want to pump hard in your young years so your not that 58 year old bank teller at Wells Fargo working 40 hours a week because you wanted to take the easy way out when you were given the option. Don't get complacent. My inspiration is this dude named #%*^ that works at the bank. He's the nicest guy in the world, but is working there every time I go in. Do you want to be that guy? Get more money, and build a bigger snowball. It will work out better in the end!

I just got an umbrella policy from my insurance provider instead. The main idea of LLC is to create separate entities to compartmentalize risk. Instead of having 5 LLCs, I have one umbrella policy that covers me for 1.5 million. It cost $150/year. Each LLC costs about $150, so you can already see the advantage. My idea is if a tenant gets hurt, comes to sue you, and your attorney says "my client has a 1.5 million dollar umbrella policy", they would be content to go after that amount.

Check out Congolium Care Free Vinyl Plank. I get a lot of compliments on my flips when I use it. Its waterproof, and a monkey could lay it! You don't even need a saw.