All Forum Posts by: Scott Johnson

100% Agree! While a lot of people want to "jump in" and get going with real estate investment it's critical that you take a step back, educate yourself, start developing a team (broker, hard money, lender, etc...) , and work for free for some local investors. That'll skyrocket your learning experience.

Agreed. I've also heard a lot of advertisements for companies that will allow you to buy what seem to be "shares" in larger properties or even e-buy an entire property that's turn-key and comes pre-managed. Wish I had some names to give you, but this is just to get your wheels turning. 

 Yea, this is my answer as well. Best of luck to you, sir! I hope everything goes well!

Also, run numbers on new construction 2-4 units and having one built. You still get a traditional loan with these and may be able to find a land more easily than one of these units. Here in my area, there's pretty much none, so we're looking into this.

I may be a bit confused. Is "B" in the second scenario "C" in the first scenario?

@Will Barnard, if you could elaborate more on your statement, "...double closing is NOT the only way to get around a no assignment clause so that statement is incorrect." it would be much appreciated. Always looking for more tools to add to my tool belt. 

Agreed. Daisy chaining is an amateur practice and rarely ends well. 

I think the biggest concept outlined here is to understand the law. I went as far as to read NCREC rules and regulations, contact them to confirm my practices were solid, and read relevant legislation passed by our general assembly. Always operate within the law and be honest with people you're working with/clients. 

Agreed. And the judge will throw that book at us if we don't follow the lease. If we give one person a pass and enforce the rules with all of our other tenants, we're opening the door for a discrimination suit. Ain't hapening.

I'm confused. There's no longer a Bigger Pockets app in the Apple App Store. Do you mean when we use the site in our phone's web browser, @Alicia Marks?

If your numbers are solid:

Property A: $2,400 Annual Cash Flow / $13,108 Down = 18% Cash on Cash Return (Before loan pay down and depreciation) That's 5 years to get your money back.

Property B: $2,400 Annual Cash Flow / $21,847 Down = 11% Cash on Cash Return (Before loan pay down and depreciation) That's 9 years to get your money back. 

There are a lot of variables involved, including management and the current condition of the properties. Just take these numbers into consideration and make the decision that you feel is best for your portfolio. Honestly, it's hard for me to understand how a 4 unit would be producing less cashflow than the duplex.

Hope this helps!

Up to you, @Martin Nowak.

When I buy rentals, it's for the long-term benefits. Cash flow, loan paydown, and depreciation. I don't pay a lot of attention to appreciation. That's just icing on the cake. 

If you have a place to park that capital that'll give you good returns then go for it, but 3K is more than most people make in a month here in America. Play Robert & Kim's Cashflow Board Game and reflection before you make any decisions.

Hope this helps!