All Forum Posts by: Jordan B.

 @Joe Villeneuve

Thanks Joe, you are the exact kind of person who pushes me to the next level. You had me really hitting the books and challenging me in the best way. I look forward to many more conversations!

@Larry Turowski

It really wasn't my intention to stir the pot I promise, I genuinely wanted to see if anybody was operating in this way. 

(1) I would love to primarily flip, but my more rural market doesn't lend itself to that. We flip every chance we get which isn't often!

(2) You and Joe V. are correct and my understanding was partly in the wrong in the big scheme of how banks loan and operate. We do need people saving money for banks to operate but there are indeed allow to lend a percentage of "monopoly" money that doesn't really exist. I myself should research things a little better before biting off more than I can chew sometimes!

(4) You are absolutely correct that the bible nowhere prohibits debt!  A lot of those verses are found in the book of Proverbs and aren't sin or law issues. I believe that it can lead to a cleaner life style for some that is less complicated and worrisome, at least financially. 

I hope very much that I have not put off an air that this is somehow a higher or better way, leverage is an amazing tool that many of my friends and family use themselves as well as myself in the past. I have learned a great deal in this post. I believe that personally this works for my family, but it's just that, a preference. Thanks Larry, and I will try to not get my stirring spoon out next time!!!

  @David Faulkner

Thanks I much for all of the great ideas on ways to "leverage" a good cash situation. In fact we have used quick cash purchases to make some unbelievable buys on houses that people needed to get out of ASAP. Now the word is spreading about our quick buys and leads are generating themselves for us.

We would love to flip more houses but our market is so limited that house prices are very high and REOs are a rarity anymore. 

And also, funny you mention it, I am in the middle of getting my real estate license to help with our purchases and selling. 

Again, top notch advise David and thank you so much for taking the time to write out the great ideas, some things I hadn't thought of for sure!

@Timothy Riley

You have a solid plan there friend, I like the way that you mitigate your risk and you obviously have multiple exit strategies in place. Good luck in the future and thanks for sharing your investing strategy!

@Brie Schmidt

I couldn't tell by reading but are you through the process of buying the large portfolio?  My wife and I were very close to doing the same thing but worried being relatively new to the real estate world that the 75 unit portfolio we looked at would be too much for us. So we started small from the ground up to develop a good business plan and operating system first. The reason I ask is how did it go buying a large portfolio. It seems we have similar goals and this is something we are still looking into. Thanks for sharing Brie!

@David Dachtera

You raise a good point about the bible and the working economics of our country. They really are separated in nature. For one is definitely about humanity, relationships and a higher authority.  Obviously economics is essentially trading, selling, numbers and equations governed by mans laws and supply and demand. 

  I guess the only real connection is how we conduct our business in the economy based on our view of the world, with debt or no debt really at the bottom of a long list of business practices. Are we fair with each other, do we maintain our integrity, do we pay our taxes, are we taking advantage of poor people or bad situations (different than arbitrage) in which all parties can benifit from equally. 

This conversation can flow so easily between ethics and business practices that it stirs up emotion pretty easily. At the end of the day we are all wanting to make money or we wouldn't mess with it, so a common end goal and lots of ways to get there. Thanks David!

@John Smith

You know I'm with you on that. I think I posted earlier I don't even really believe it's a sin issue when you get down to it. It's more of a if I don't owe people anything I am more likely to have my time and attention to help and love one another. And you are right, it's the consumer debt that is ravaging people's life right now. I'm not anti leverage on principal by any means, we are just doing it debt free and having great success and I was curious if anyone else out there was. Again I hope for success for all of us!!!

@Jerry W.

My wife and I too have indeed used debt in the past but as you said once your out of it it's a good feeling. Now that it's a choice I like staying that way!  Thanks for responding Jerry I enjoy your input on these forums and have a lot of respect for you!

"For good ideas and true innovation you need human interaction, conflict, argument and debate". Margaret Heffernan

I love bigger pockets for this reason here. It really challenges you to stop and think about how you do things. I really appreciate all of the viewpoints on this site and the brilliant entrepreneurs who keep us all refined. You guys are great and as always I have learned a great deal on bigger pockets again!!!

@Joe Villeneuve

I'm not sure we are not saying the same thing about banks. You say all performing assets such as CDs, loans, cash, etc. these are all from people putting money into banks (saving). The bank pays a small amount for you to lend them money and they charge a large amount to loan you money and the difference between the two is their profit. Again, you have no savers you have no bank.

Again, I am not arguing that debt or leverage is bad. I believe like anything when used responsibly it's absolutely fine. I still agree in real estate that leveraging out performs cash.  And even from the spiritual point I made in the beginning of this conversation I do not believe debt is wrong or sinful, only that I prefer cash for previous reasons. We cannot argue matters of the heart for its different for us all.