All Forum Posts by: Ray G.

@Kyle J.

Thank you, i will reach out to Union Bank and see if they have a product that will help.

Dan,

Thanks for the response, i do own it in my personal name and a refinance is an option i've spoken with lenders about.  I am looking for a line of credit as i don't want to pay the monthly finance costs if i don't have to, the money would be a backup as i've exhausted my current funds.  I may use a small portion, but plan to leave the rest in case i need it.

Thanks!

Hello professionals!

I have a question i can't seem to find the answer for related to Lines of Credit.

My Situation:  I have a property that i purchased a few years ago that has appreciated in value significantly.  I own that property in cash and would like to take out a line of credit as i'm low on cash, because as all investors do, we invest our money and run out of working capital.

Location: Northern California

I currently have 6 financed properties, including my personal residence.

What i'm looking for: Can someone please direct me to a lender that will do a line of credit.  

Thanks for reading, appreciate your direction.

Ray

Thank you for your responses.. @Steven Hamilton II and @Lance Lvovsky..

Here are my responses to your comments..

S-Corp

Accrual

On 1120s tax return, schedule L,

Shareholders & equity section.

Balance Sheet side.

Cash - 1000

Land 10,000

Assets- 11,000

No labilities

Which line is the 11,000 shown on

Line 25? Adjustments to shareholders 

Quick question, if i have 10k of liabilities, how do i show that on my 1120s, specifically which line?  It's an operating expense.. 

I just have to put in my 2 cents.

@Wes Blackwell has put together a compelling case backed by statistics, articles, hard work and pretty thorough analysis.  His information does give a unique perspective and for the period of time I was reading this it really made me wonder if liquidating my portfolio this year was the right move.  Would i be missing out on another 6-8% potential appreciation if i sold now?  Possibly.

Wes is not saying buy and hold in stockton.  I believe he's saying this is a good year, possibly even the next year or two will be good years to be owners in stockton as people get priced out of other markets.

Does Stockton have issues?  heck ya.  Is there more room to rise?  I honestly believe so, and that's even before Wes showed the analysis that strengthens my thoughts on this market cycle.

Who is investing in Detroit?  That city's been wracked to hell and back with the financial crisis and is now expected to continue to rise out of the ashes.

I'm not trying to do a side by side comparison, but if you see problem cities that have hit rock bottom, like Stockton, like Detroit, there's money to be made!!  These are the opportunities for those who have the mental fortitude to take a chance..

But it's like gambling at a casino, i'm going to put a good chunk of change on red, closing my eyes and hoping like hell i don't lose it all.

I happen to be in a different situation in regards to Stockton.  I've made my money and i have plans for it.  But if i didn't have plans for it would i stick it out in Stockton?  Possibly for another year or two.

I also have the concern that when the market turns, Stockton will get hit again, there's just not enough job growth to sustain this economy.  Some jobs may be going there now but how will that sustain in a downturn.  Only time will tell, but history gives us some good lessons.

If you want to invest in Stockton.. read this forum!  Do so with your eyes open and have your exit strategies planned out in advance.. but Stockton is not another Sacramento.. not from what i've seen.

Thanks to everyone who's posted on this thread, its truly enlightening to hear everyone's opinions.

Hah, i'm selling.. for those looking to buy in this market!

(This is not an ad for a sale of property, but a joke based on my previous post.)

If the growth is there, great, but stockton has a long way to be an investment destination..  Even at the prices today, cashflow is negligible and the areas are tough.

My property manager has a hard life.

My cashflow pocketbook is empty.

I've got war stories that would make many seasoned investors go pale.  Those scars mostly come from stockton.

Don't get me wrong, I've made money in Stockton through the turmoil and there may be more to be made.. it will NOT be easy for anyone.

I started buying multifamily in stockton in 2013 during the Bankruptcy era betting the market would be great.. and it has been, i've experienced great rent rate growth and great appreciation.  Now i'm planning on liquidating my portfolio this year and moving my equity to more cash flowing markets...  

This thread has been really interesting, thanks for putting this together @Wes Blackwell.

I can say honestly that the cash flow that i've had has been great! but its all eaten up with bad tenants, bad areas, city issues, gangs, violence etc.. 

I'm excited to sell and move on to areas more conducive to cashflow.

Thanks everyone, i have decided after searching for the past few weeks to go with Affinity.  The process has been simple and affordable.

@Account Closed i hear you, i have a decent portfolio now and i'm self-insuring most of those that are owned in cash.  The ones i have a loan on i have to get insurance.  

I've tried to look into the commercial side as you mentioned above, got any recommendations on that?