All Forum Posts by: Paul Shannon

I don't promote turnkey.  Make sure you do your due diligence on the property, and the operator.  Who did the work?  Quality level, permits pulled, was it lipstick on a pig, etc?  

You can count on overstated pro-forma returns.  just know by how much, so you can actually make money and not buy a headache. 

Risk vs. reward. How much downside risk do you have with a lower interest rate on your HELOC, vs. a hard money lender rate? COC isn't everything. Gotta be able to sleep at night too. That's a question only you can answer.

Syndications are not typically 1031 exchange friendly.  Check out a Delaware Statutory Trust as an alternative. 

 This is personal finance 101 and only you know your risk tolerance.  Sounds like a good deal and there is no right answer.  

Factor time value of money, leverage wins out all day long.  

Do you need low stress to sleep well at night.  Low/no leverage = piece of mind.  Lower returns, but greater safety. 

Every decision is based on risk adjusted return.  Much of this formula requires your own risk tolerance as a variable. 

Hey Brandon,

Saw your forum post for Hawaii maintenance guy moving to Indy. Absolutely priceless to have these guys. Shooting you a PM to get contact info. Got about 30 units, mostly south of Indy by a few hours, but considering syndication, and a contact like this would be priceless. Much appreciated.

Paul

Heloc is good for two things, one being able to access the capital to seize a deal.  Two,  flexibility.  The flexibility to access cash, but not pay interest on it if not used, in my option is priceless.  Its portfolio management and opportunity cost, but if you can build that into your overall strategy, very important. 

Talk to a wholesaler and see if you can sell it to an investor, before putting it on the market

check the big commercial brokerage sites.  Marcus Millichap, CBRE, etc.  They report this info, as specially for the big metros.  Its multifamily driven and macro, but if your niche is single family, the data is useful. 

Topeka!  I love tertiary markets.  Tell me about Topeka.  Kansas City is close by and is a hot rental market from a cash flow stand-point.  Good appeal.  

Does anyone living in Topeka commute to KC?  Is Topeka growing?  Love to hear about markets outside of my knowledge, as every market is so different. 

Maybe a business line of credit on the paid off properties would be a happy medium.  Gives you the cash if you need it to pounce on an opportunity, but not the payment if no opportunity arises.  Check local banks and credit unions, if you can give them first lien position.  Invaluable.