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All Forum Posts by: Scott Taylor

Scott Taylor has started 16 posts and replied 55 times.

Post: Custodian for RE Notes

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

How and where do you store your notes?  Do you put it in a fire-proof safe or use a document custodian?  

I've talked to one company but they charge $70/mo which seems on the high side.

Who do you recommend?

Post: Gobundance and their M1 program

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

I'm in M1 - and @Michael Sjogren is a familiar face :)

Here's how it works:

You get put in a group of ~ 30 people. That group is then subdivided into two groups - two "PODs" (a smaller group in that group - usually 10-15 others) with two supervisors (presumably from GB?) who help with the logistics.

There are two challenges each week - usually one is a video from Rock Thomas that has you brainstorm how you are going to improve your life, limiting beliefs, etc. The other challenge is usually along the same lines (often exercise, financial planning, etc.).

The challenges or exercises might be things like filling out the "One Sheet" (which is basically a big spreadsheet with goals, net worth, etc). Other challenges might be about doing a certain exercise regiment (they have their "G9", which is pushups, situps, etc for 1 minute each), dealing with personal finances, etc.

After the first 5 or so weeks, your POD starts meeting virtually once every two weeks or so to hold each other accountable and share wisdom + present on a topic.

You're also assigned an accountability partner - I tend to meet with mine once a week and we discuss strategies for making more money and holding each other accountable to what we said we'd do the week before. About once a month grab a few beers in person (we happen to be geographically close).

There are two more things (and these are for all M1 members - not just your group): a very early morning call with Rock Thomas (on wednesdays) - usually it's basically him lecturing on a subject (they record the calls so you can watch/listen to them later). There's also a Monday call in which an expert is interviewed (this might be in finance, meditation, etc.)

There's a lot of content and lots to take advantage of - including connecting with members in other groups (but still in m1). (for instance: After doing my first 4-unit buy and hold, I've been doing some trading and was able to connect with someone from one of the other groups who does option trading for a living.)

Most of the members are involved in real estate, so if nothing else it seems like a great place to network.

As for logistics - it seems like M1/GB is still trying to figure things out. They do all of their communication on FB (in one or two private facebook groups - one for the M1 group your in your pod and one for all M1 members). Communication and finding things can be difficult at times. I'm surprised they've chosen to go with FB instead of something else (or building a custom site).

Regarding mentorship, I've found the program isn't really structured to get a direct mentor. This is actually what I was looking for but I think it's a logistics nightmare for them. I think, though, that there are still other ways to get mentorship in the program - something I'm still exploring.

I would say it's been very helpful so far to me - if for nothing else, just in personal budgeting. I would have said a few months ago that I didn't need to improve in personal budgeting, but I've already saved what I've paid for M1.

I signed up for the 6 month plan. I still have a few months to go and look forward to it, but wonder where/how they will be adding additional value.

I consider Rock Thomas and the org in general a really good one - certainly not a sleazy guru (although I suppose a thread like this doesn't fit in anywhere else on BP). I think they are out there to help you along the path and would recommend it to anyone who is looking for a way to improve their net worth.

Post: Why are cap rates so high in Wilkes-Barre, PA?

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

My agent actually owns a property near there, and said she's had a devil of a time finding renters.  Apparently it's been siting vacant for a long time.  They also have professional property managers who have tried to find renters with no luck.

Apparently the local university changed it's policy with allowing certain years to live off campus.  I believe all of the students could live off campus previously, but now it's only seniors or juniors. 

Don't quote me on that - but my agent said something similar and said she's have a devil of a time.  They are obviously trying to unload the property.

So your biggest thing might be finding renters.  I'd check the property market to figure out if you can actually get anything.  Also, if you are serious about it, you could always ask to see the current leases (which are sometimes only released after putting an offer in).  Those current leases will show how vacant / full those units really are.

@Todd Moriarty generally cash on cash doesn't include closing costs. Why? Because CoC is equal to cap rate assuming cash paid is 100% (i.e. An all cash, no loan transaction).

For this reason, I calculate both cash on cash vs. total yearly return on my out of pocket money (which includes the down payment).

Also note that usually you pay the first month of the mortgage in addition to the down payment, plus the whole of the insurance and (some) taxes at closing.

Post: Why are cap rates so high in Wilkes-Barre, PA?

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

@Kevin D. What kind of cap rates do you see for multis in those better areas?

As an out of state person, the cap rates that I'm seeing - at least by the universities is insane (15+). But I've heard that the two universities there started requiring their students to live in the dorms and it was otherwise hard to find good, quality tentants who weren't on section 8.  Thoughts?

Post: Why are cap rates so high in Wilkes-Barre, PA?

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

Why are cap rates so high in Wilkes-Barre?  

I know the population has been decreasing for a while, but what's going in Wilkes-Barre that's leading to such high cap rates (i.e. sellers willing to sell their properties for really low amounts?)

Post: Finding owner financing w/ 10% down or less

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

How do most people go about finding owner-financed properties where one can put 10% down or less?

Is it possible to find financing (via fannie/freddie - or portfolio loans?) with 20% down on a 2-4 unit investment property?

I recently had a lender tell me that 2-4 units will require 25% down. 

I'm ultimately trying to maximize my cash-on-cash return, so I'd like to put as little down as possible.  Are there any other strategies for maximizing my cash-on-cash return aside from going for commercial loans (with variable interest rates) or doing creative financing options (such as subject-2 or owner financing)?

Hi @Kevin D..  Obviously I'm digging up an old thread but would you mind PM'ing the name / company you use for property management (or just posting it in this thread)?  Thanks!

Post: Closing gone wrong...legal proceedings to follow?

Scott TaylorPosted
  • Investor
  • Oakland, CA
  • Posts 57
  • Votes 16

@Jay Hinrichs What is the E&O department? Do you see those mobile homes on solid concrete appreciate in value the same way a typical house does?