All Forum Posts by: Tim Robbie
Tim Robbie has started 4 posts and replied 15 times.
Post: Leveraging undivided interest
- Posts 15
- Votes 2
Does no one have any experience or input with this?
Post: Leveraging undivided interest
- Posts 15
- Votes 2
I inherited some ranch land and thus am now partners with about 7 other relatives on this property.
Is it possible to leverage an undivided interest in ranch land?
If so how and where does one go to do so?
I do not want to partition or sell it.
It's disappointing to think that I have so much value at my fingertips but have no way of utilizing it.
Ive spoken to several banks and credit institutions but cannot seem to find anyone willing to do a cash-out refi for me.
Thanks all,
Tim
Post: CPI weighted escalator clause
- Posts 15
- Votes 2
In Texas for commercial property.
No, it only goes up.
If CPI is negative it stays the same.
Are these clauses illegal in some places?
Post: CPI weighted escalator clause
- Posts 15
- Votes 2
Hello everyone,
Im writing up a new lease contract and I'm no lawyer.
I need to add a a CPI weighted rent escalator clause.
Does anyone have one?
Thanks!
Scott,
Im thinking about the fact that i'll be paying interest both on the loan for the new unit as well as on the down payment money (because it came from a refi).
So when you figure your mortgage on the new unit, you would just calculate it as the full value of your offer?....Because your having to pay interest on the down payment money as well.
Greg,
if I cash out and use the money to gamble.....how do I find the best neighborhoods to do so in?
Do I need to figure expenses any differently when purchasing SF or MF rentals with down payment money derived from a cash out refi on my personal residence?
Quote from @Garett Biondo:
Hey BP community. I come to you with a predicament that I'm hoping to get some outside perspective on. I'm a structural engineer with zero passion for my current career path. The only reason I studied engineering was because my strength in grade school was math and I didn't really know what I wanted to do. It wasn't until a little over a year ago when I discovered BP that I realized what I want to be and that is a full-time real estate investor.
I have consumed a lot of pages and podcasts in the past year so I know how helpful it is to have a high-paying W2 to fast-track your way to FI. An engineering career path can provide that, but it requires a PE license and quite a bit of experience. I'm at the stage in my career where there is pressure to study for and take the PE exam. However, I feel like I'm living a lie working in a field that makes me unhappy just because it'll provide me stable and sufficient income to invest in RE. Also, if i do get my license, it would feel like a waste of time and money when I jump into this thing full time. I'm at a crossroads and I want to follow the path that rewards me with both enjoyment and the tools necessary to become a successful investor. If you were in my shoes, would you switch to a career within the real estate industry due to your passion in REI? If so, what occupation would make the most sense? Or would you stick with engineering and invest until you can quit when you hit FI?
I really appreciate any suggestions/guidance you can think of!
- Garett B.
Do you have the resources to start in RE now?
if so then why wait?
Also, I just confirmed the loan value will derive from the actual land value which is $3-$4k/ac. So it looks like $2.8 mil is more in the neighborhood.
Quote from @Account Closed:
It seems that you have two assets: an 800 acre ranch and knowledge of how ranches work. You have one weakness: you don’t know how to operate SF or MFs. I think it would be a bad idea to buy a bunch of residential units because there is a good chance you will crash and burn. A couple things come to mind:
I assume the ranch is leased. A bank loan will be based on the net income the ranch generates and not what you think you can sell it for.
Given your experience, I would think about ways to add value to the ranch—i.e., create multiple revenue streams. Maybe grain silos, lease a portion of the land to a farmer who grows corn or cotton or something, housing for laborers… Banks will lend money to make these kinds of improvements.
Its an undivided interest of about 6300 acres thus I only receive 13% of any income generated from the property.
Multiple revenue streams already exist for the property including hunting lease, farming lease and some improvement revenue from a livestock lease. As far as ranches go, maybe with the exception of a solar farm or some equivalent, it's about as diversified as ranching gets.
Also, Its a very complicated situation that involves a separate operating company and 5 other ranches which I am not part of.
Im not really interested in improving the property any more because what I would actually realize from the improvements is a joke at 13% and all the work/mediation id have to put in amongst my partners.
Quote from @Bud Gaffney:
Tim, congrats! There are just SO many options with that kind of $. How about we start with this question. What excited you about REI? Do you like residential? Commercial? Both? Small? Medium? Large? Extra Large? Give me a little insight on what you love the most and I can give some input. PERSONALLY, I would buy as many units as possible. That is what I am doing now :)
What got me excited about REI:
Not being so dependent on my current job for money.
Having a business that is lucrative without having to directly manage lots of people on a daily basis.
Being able to travel more often.
I like MF because I feel like there is serious growth potential in this area.