All Forum Posts by: Tom Aiello

I may be confused here, so hopefully someone can explain this to me.  It seems to me that the cash reserves people are discussing are really, really large.

We tend to hold our "cash reserves" as equity (with equity lines) in properties.  That way, we aren't sitting on actual cash in the bank, we're just reducing our leverage until it reaches a point where we can handle emergency repairs.

What's the reasoning for keeping that cash in the bank instead of putting it into the equity on the property, with a credit line to take it out again?

Can someone help explain this for me?

Thanks in advance!

Tile is tougher, but it's not tenant proof either.  You can crack and break tiles if you move (and/or drop) heavy appliances across them.

If you get discount tile (which may be on close out) make sure you have enough stored that you can replace the inevitable broken tiles over the next several years.  Replacing them isn't bad if you have the original tile, though.

 If you're a Macintosh user, iCloud has the same functionality for all apple devices.

Find a different broker, for sure.

It sounds like they are just not going to work for you as an investor.

 There used to be a saying in the business world;

"Beware of slow talking billionaires driving pick up trucks."

It was a reference to Sam Walton, who used to drive an old pick up truck around to check up on his stores.

There's also an amusing article here:  https://www.mrmoneymustache.com/2015/04/28/what-does-your-work-truck-say-about-you/

The thing you have to realize about a "no money down" strategy is that leverage amplifies risk.  The lowest risk way to invest is all cash.  The highest risk way is all debt.  Most of us land somewhere in between.  Tune in your level of debt to match the level of risk you can handle, and the level of (potential) return you are trying to achieve.

Where are you and how good is the deal?  There's the BP marketplace.

We're using Cozy and it's very convenient for us.  No experience with other systems--we started with Cozy and haven't gone anywhere else.

Is the $75k a substantial portion of the purchase price?  Are we talking about a $300k property or a $3m property (roughly)?

Assuming it's a substantial percentage, I think you're going to have trouble getting any movement on it.

Is there any way to subdivide the property and rent or re-sell a piece of it to come up with some of the remodel costs?

What's the business model for the equine facility?  Can you take on a partner for that?