All Forum Posts by: Steve Hall

@Austin Moller

Welcome to BP!

Ideally you want to run around 70% on BRRRR, so if your ARV isn't $379,000 then this is going to eat into your ability to "Repeat".

Also, a year is a long time to carry $265,000 IO at 7%. Your carrying costs on the loan alone will be $18,500! Add in $23,000 for real estate commissions and you're out $41,500 + Rehab expenses one year from now. And whatever profit you do make is earned income, not passive income so you'll pay FICA on that.

Let me know when you're ready to invest for passive income and we can talk...

@Mark Sam

It's impossible to answer your questions without knowing more about you. Everyone here is just telling you what THEY would do, not what you should do...

Do you mind explaining how you "recent got" a "$500,000 (full equity) condo in California and $200,000 cash"? Is this an inheritance or a trust fund transfer because you turned 21? You sound like the son of a UHNW individual/family.

Is the condo transferred to your name now? Who is living in the condo?

I'm confused on the trust. How did you "write the trust" and "get that done yourself"? What does that mean?

Do you mind explaining where you live now? How do you pay your current bills with no job and no income for the last 2 years? How do you plan to pay for the utilities and the taxes on the condo? Who buys your clothes and food?

@Jirair Kolangian 

$1.9 for $6,400 GMR? He must be counting on someone buying it for the land value. Or, using Nik's analogy above, perhaps he's trying to inflate the price attempting to attain a 50/50 split: $1.9m for the land and $1.9m for the construction.

Figure out what number works for you and make an offer to see if he bites! Once you can get over the number hurdles, the details will probably be easier to negotiate.

I just made an offer for a property this morning. Asking price: $1.1m. He's asking way too much. The response from seller's agent: "Seller won't even counter any offer under $1m". Tax assessor shows he owns the property in his own name!

I run the numbers and make offers quickly to test for responses like this. Since this seller has no idea how to sell a rental property, I move on to the next one.

@Grant Rothenburger

@Grant Rothenburger

Why would you risk your own reputation by claiming that Scott is "responsive and nice" when:

1. You've never even spoken to Scott Smith!
2. You've never done business with Scott Smith or Royal Legal Solutions
3. The emails you claim to have received could have been written by his secretary, or Edward in the Philippines

How can you say "they may be slipping a little" when you have no other experience/perspective to judge him by, other than your own? @Gerilyn Bristow started this thread 6 months ago with a complaint about Royal Legal Solutions.

And why would you "hope" that "it's not a common issue"? Do you have some vested interest in the success of Royal Legal Solutions?

Your post baffles me, unless you work for Royal Legal Solutions and are trying to deflect...

@John Underwood 

How can you evict someone who never had a contractually obligation to pay you? They're not your tenant. This sounds like trespassing to me.

In Florida, we have a law where I can have you served for trespassing, and the sheriff will escort you from the premises and arrest you on site if they catch you violating it. The person served cannot contest the Trespass Warning, and it is valid for life!

If you own the SC property, and someone else is living in it, I would find a smarter attorney than the one you have now.

NOT a wise investment to buy a property with the home owner (or anyone) still occupying it. They could literally cancel their homeowners insurance and set it on fire the next day.

@Tami Richardson

@Tami Richardson

Landlords don't sue tenants, except for evictions, which is just to get rid of a problem. If your tenant is gone, you're problem is solved. 

Get over it... seriously. You don't really want to spend thousands of dollars because you are angry, upset, or wronged.

Worse things will happen.  If you need to talk about it, PM me and I will listen. If you want to hear stories that are worse than yours, I can tell you those too. If you need a self-help book to read, I'll recommend one. If you didn't vet the tenant well enough, vet their replacement better.

It's in the past. Move on... 

@Brenda Hamstead

What's the rate and term? If it's 3% APR, well then they have to make their money somehow!

I would never pay a non-refundable application fee (for anything!).  That's how scams work...

Call 5 other lenders, or just wait for BP members to offer you money. You should post how much you need and the details of your project. (Do not specifically ask for money from BP members though...)

@Lois S.

I would decline. It's not binding and I know you're going to look for ways to take my money.

Come see me on move out day when I've cleaned everything out.

@Account ClosedThat's a great question!

The average bear market lasts 1.3 years with an average cumulative loss of 38%.

The average bull market lasts 6.5 years with an average cumulative gain of 333%

At the time of this post, we are currently in a bull market which has lasted over 10 years with a gain of 376% (16.7% annualized) so far.

The longest ever bull market was in the 1950s: 14.8 years and 908.5% (16.9% annualized) gain.

This is why experts are warning of the down turn/crash coming. We are past the bull market average for time, and amount of gain.

I don't see any sign of the crash yet - so there's no reason to be scared. When it happens, there will be some signs. And because everyone is still hyper-sensitive from the housing bubble crash and the dot com bubble bust, I would guess this one could be worse. I would expect more people to have their finger on the trigger, ready to pull their money out of the market on a pin drop. Many are even setting stop losses so they're out automatically on the first sign of impending doom. This will only accelerate the crash.

source

@Shashank R.

@Shashank R. Learn to use the search feature.

What would you do with $100k?

• https://www.biggerpockets.com/blog/2013/02/05/100000-ira/
• https://www.biggerpockets.com/forums/48/topics/98030-what-would-you-do-with-100-000
• https://www.biggerpockets.com/forums/311/topics/263058-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/48/topics/379009-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/12/topics/476816-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/88/topics/402002-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/311/topics/442780-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/311/topics/620875-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/684/topics/632348-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/12/topics/703186-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/12/topics/603412-what-would-you-do-with-100k
• https://www.biggerpockets.com/forums/12/topics/512858-what-would-you-do-with-100-000

Other amounts:

• https://www.biggerpockets.com/forums/56/topics/601626-what-would-you-do-with-1-000-000
• https://www.biggerpockets.com/forums/55/topics/556222-what-would-you-do-with-423k
• https://www.biggerpockets.com/forums/12/topics/485132-what-would-you-do-with-300k
• https://www.biggerpockets.com/forums/62/topics/151686-what-would-you-do-with-250-000
• https://www.biggerpockets.com/forums/311/topics/686846-what-would-you-do-with-200k
• https://www.biggerpockets.com/forums/311/topics/261492-what-would-you-do-with-200k
• https://www.biggerpockets.com/forums/311/topics/220632-what-would-you-do-with-150-000
• https://www.biggerpockets.com/forums/48/topics/269197-what-would-you-do-with-150k
• https://www.biggerpockets.com/forums/12/topics/648587-what-would-you-do-with-80k
• https://www.biggerpockets.com/forums/311/topics/482917-what-would-you-do-with-63-000
• https://www.biggerpockets.com/forums/12/topics/254027-what-would-you-do-with-50-000
• https://www.biggerpockets.com/forums/311/topics/631955-what-would-you-do-with-50k
• https://www.biggerpockets.com/forums/311/topics/582551-what-would-you-do-with-50k
• https://www.biggerpockets.com/forums/48/topics/41959-what-would-you-do-with-3-k-
• https://www.biggerpockets.com/forums/88/topics/103806-what-would-you-do-with-30k
• https://www.biggerpockets.com/forums/311/topics/276202-what-would-you-do-with-30k
• https://www.biggerpockets.com/forums/12/topics/133046-what-would-you-do-with-20k
• https://www.biggerpockets.com/forums/48/topics/93143-what-would-you-do-with-10k
• https://www.biggerpockets.com/forums/311/topics/527628-what-would-you-do-with-5-000
• https://www.biggerpockets.com/forums/12/topics/253796-what-would-you-do-with-1-000

(This is NOT all of them... I just got tired of copying and pasting...)