All Forum Posts by: Russell Buxton

We intend to hold the property for 10-15 years. Does anybody say which is the best offer here? What questions should I be asking the broker? Any body see any red flags? - thanks

people forget we have 37k deaths in 1 month WITH the measures in place. multiple that by 12 or take away the lockdown...see where the deaths could be..?

@Bryan Beal
Real estate is always about balancing: Risk -v- Reward. Let's use that lense...

Money has a short memory. To say that the US economy will collapse if people have to stay in their homes for 2 more months seems a really far stretch. Yes, it might be harder and yes, the govt. will have to give more handouts - BUT the reward is back to a fully functioning system in a 6-9 months, maybe longer. Even it takes 12 months (a typical recession period- and aren't we due for a correction anyway?) money forgets  and market forces will raise again.

Choice 2
 Bryan gets the freedoms he desires. Reward. Reward? ...(to sit in a movie theatre alone?) ... I am sure there are many benefits people could come up with...

BUT AT WHAT risk - to himself, his neighbors, his family, his customers, the kids playing in his street (yes kids have pre-existing conditions too) the country?  The virus can kill up to 10% - but seems to average around 2-5% dependent on location. REMEMBER ... the deaths in Italy and Europe ONLY STARTED TO RISE AFTER THE LOCKDOWNS were in place (March 12- look at death rate in Italy then). Can you imagine what the situation would be now if social distancing were NOT enforced there for the last month??? Is the freedom you seek worth the unforseen risk of a comletely out of control virus that kills 5% of the population.

Bottom line here...in the case.. #s will not lie. Some of those people in Michigan this week will very likely catch the virus. Places that open to soon will have higher death rates than those that don't (see Sweden's #) - They will not shut don't and #s are surging.   In 12 months, the numbers will tell the truth - what should or shouldn't have been done. Personally, I don't think the reward is worth the risk.

I live in Singapore. People here trust the government to give them truthful information. Our numbers have begun to spike. Nobody is even considering wanting to go back to work.

Most people only generally believe what they see for themselves. When you see people in your own communities suffering with the virus opinions will likely change. 

Wishing everybody health And wellness.

Anyone worried that the FED QE program will lead to massive inflation over the next 24 months? Any tips on best way to position portfolio during high inflation environment?

Most certainly not poised as a political stunt, but after reading my post - I can see how it can be misconstrued. Wondering where the opportunity might be or the risk. Seems that an expansion of Section 8 definitions might lead to stronger returns for Class C properties? 

What are people's thoughts on the impact of a Sanders's Presidency on the housing market? Also, where might there be opportunities? (Excuse typo in his name)

• From his website:
• End the housing crisis by investing $2.5 trillion to build nearly 10 million permanently affordable housing units.
• Protect tenants by implementing a national rent control standard, a “just-cause” requirement for evictions, and ensuring the right to counsel in housing disputes.
• Make rent affordable by making Section 8 vouchers available to all eligible families without a waitlist and strengthening the Fair Housing Act.
• Combat gentrification, exclusionary zoning, segregation, and speculation.
• End homelessness and ensure fair housing for all
• Revitalize public housing by investing $70 billion to repair, decarbonize, and build new public housing.

Read More

Which loan would you recommend I go with based on their figures - Blanket loan covering 8 SFH

Scenario 1. 

5 years amortized for 30years - Balloon payment at the end of 5 years (option to pay off or refi.)

Loan Amount $1.33m

LTV: up to 65%

Amortization - 30years

Term: 60 months

Interest Rate: 4.8% (5 year swap + 3.4%)

Guaranty/Cash Management: Non Recourse. No CM

Yield Management: 54 months

Origination Fee: 1%

Scenario 2.

10 years amortized for 30years - Balloon payment at the end of 10 years (option to pay off or refi)

Loan Amount $1.33m

LTV: up to 65%

Amortization - 30years

Term: 120 months

Interest Rate: 4.6% (10 year swap + 3.1%)

Guaranty/Cash Management: Non Recourse. No CM

Yield Management: 114 months

Origination Fee: 1%

Any tips on how to negotiate better terms or something to ask for?

Thanks in advance

Josh. Thanks for your post and for clarifying your point. Love the attention to detail. Take care

I have up to $1m in equity across 5 different properties.  I would love to put some of this excess cash to work in other properties.  Is there a loan product out there that I might qualify for that pays off all my other loans and gives me just one loan. i.e. a cash out refi on 5 properties all in one go? What is the name of the loan I should go for? What might be some drawbacks to getting one of these loans?

Peter,

Location for investments will be in North and/or south carolina