All Forum Posts by: Reginald Ross

@Wade Kulesa

Dave Ramsey couldn’t be more wrong on this. I suspect his actual reason for saying this is to divert attention away from real estate because his advice doesn’t apply at all to the sector.

His advice keeps people out of debt but it also keeps them poor or at least severely limits their wealth.

@Brent Salazar

Transfer properties to an LLC AND refinance using commercial lender OR use private capital or hard money to expand.

I’m purchasing a Yacht with the intention of using it as an AirBnb accommodation.

Guests would not be allowed to navigate the boat and would stay docked at a very popular music venue/retail shopping/restaurant laden area.

So far, I’ve had significant issues finding an insurance provider that will odder coverage on the yacht as an AirBnb. They will cover personal use but all have stopped there.

Any tips?

@Nathan G.

I can’t speak for the media reports but my collection rates have been better than ever.

The only tenant I had to work with was ironically the one with the highest income out of all my tenants.

@Wade G.

I always think of this as finding a personal balance between risk tolerance and return on equity.

Obviously, your risk is minimized when you’re debt is $0.

However, your returns are usually poorest at this level of debt.

This isn’t always true but if you google “optimal capital structure” you’ll discover in painstaking detail why.

In general though, the challenge is to maximize your ROE up to the point that you don’t feel comfortable with the amount of debt you are carrying.

@Lawrence Michael

I did exactly this back in 2014. I rented it out for a few years and made numerous improvements. Sold it for $5,000 LESS than I bought it for in 2019.

People that can afford the nicest house in a decent neighborhood will probably rather live in a much nicer neighborhood with an average house (for that neighborhood).

@Adam Zach

B.S. in Chemical Engineering, M.S. in Biomolecular and Chemical Engineering and M.B.A. here lol.

All that schooling to only discover a passion for REI lol. The qualities that make a good engineer though do make a good investor.

Analytical, number oriented, spreadsheet saavy, problem solvers, etc

@Mary Mitchell

100,000 out of >330 million in the US? How many other diseases kill people more people than this per year? Where was the empathy then?

I’m getting tired of this type of rhetoric. Everything that is happening right now is extremely unfortunate but it’s no different than the many other tragedies occurring daily in this world that everyone chooses to ignore.

I have had two family pass from COVID-19 and they would turn over in their graves if they thought I exploited their deaths as some sort of emotional justification like you’re trying to do here.

It’s shameful, manipulative and fallacious. Come up with a better argument.

@Matt Doubell

Comps are the best method for estimating ARV. A few things that I've learned:

Zillow is good but not great for comps.

Strive to get at least 3 comps within a half mile radius, same number of bed/bath, +/- 10% of sq ft, same style, amenities, etc.

@Dan Mackin

You can actually rent out an owner occupied property at any time BUT that can’t be your intention on the date of closing.

If you get transferred for work, go through a divorce, etc after closing, your situation has changed and deciding to rent out after the fact is not considered mortgage fraud.

Source: my attorney