All Forum Posts by: Pope Lake

@Account Closed Thanks for your feedback, Elliot! In terms of the 8-10%, are you referring to a percentage of monthly rent? Or annual value of the house, broken down monthly? 

In terms of trading equity, I get your point. I guess one of the downsides would be, upon sale of the house - I could be forking over a much larger amount if there's appreciation. 

Hi BP! 

I have a family friend who is supportive of me investing in real estate. This is such the case that they are willing to potentially manage the first property I purchase, which is looking like it'll be a SFR.

I am trying to cut costs as much as I can, which is why I love the idea of getting help from a close friend on the property management side. However, I am unfamiliar with proper compensation with a situation like this. 

I want to pay my friend their due, but I also want to leverage the scenario as a potential point of cost savings. Fortunately, they aren't looking to have this position replace their current job, they are mainly interested in helping. 

For this reason, what do you guys think about me giving them an equity stake in the house, in exchange for a smaller amount I'd give them monthly for helping me out?  

Further, what percentage would you deem appropriate if you're familiar with this exchange? 

Thank you! 

@Ron Richter awesome - great strategy with getting in touch with a local agent. I might as well try that on my next trip.

And always nice to have a little bit extra on the flows because of the currency. Thanks for sharing.

@Ron Richter this is an interesting post! I like to travel, so investing abroad is one of my long term goals.

I wanted to ask, is there any currency fluctuation risk that you have to manage? This is something I always have in the back of my head, wondering how it may have played out for you.

@Jasmine Hu I appreciate your insightful response as a broker in the area!

I resonate with your comment about southwest dc - many of my friends there would love to move to the wharf, but the prices are crazy! Good for appreciation seeking investors as you’re mentioning.

Since I’m looking for cash flow maybe dc is not the move, but it’s good to have this context in mind if I’m looking for cash-flow down the road. Thanks for your time Jasmine!

@James Wise yessir! Will be on the lookout.

@James Wise thank you for this detailed response!

It’s good to find out that two of the cities I’m mentioning are on the list of top turnkey markets.

Additionally, I know your feedback on some of the best practices of out of state investing will prove useful to me.

The Birmingham neighborhood guide is great as well. All around solid post - thank you for taking the time out!

@Cassidy Burns I like your post - thanks for taking the time out. In terms of your two options presented, I’d much prefer the cash-flow / equity for now relative to potential appreciation. This is very interesting when it’s put into this perspective!

In this sense, cbus Bham might be better, also given my goals. Very insightful on your part in mentioning the lower potential for cash flow in dc.

Also I think this might be a better strategy with the impending recession?

@April Kennedy you’re right, want to get started in an area where I have somewhat of a competitive advantage so Bham and cbus look good.

@Remington Lyman this would be ideal. Is an owner occupied loan essentially an fha loan?