All Forum Posts by: Travis Jacobs

This may be a better source to the argument but leaves out the paying with cheaper dollars to hedge inflation. Someone mentioned paying with cash avoids inflation and I don't get that one bit since in most areas home prices mean revert across the board to low prices. The Fed inflates housing prices which is nominal but tracks wages and inflation over time.

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I totally get it. But the whole point in my opinion is to leverage your money, beat inflation, and if you do it right you pay almost nothing for the home while someone else pays off the debt. If you buy cash you are buying a straight cash flow. You can do that with other investments with less headaches. I don't agree with over leveraging though. In some cases you can be at more risk buying all cash if not done properly as well. I used to think buying cash was the way to go but people forget about inflation. You're losing money over time. So if you're not around 65 or older you're losing money. Buying power will be weakened.

Originally posted by @Sylvia B.:

Originally posted by @Travis Jacobs:

Nothing wrong with cash flowing after the properties are finally paid off but it may be a good idea to keep refinancing and turning that equity into more deals too.

Well, now, that reminded me of a little story:

The Parable of the Mexican Fisherman and the Banker
An American investment banker was taking a much-needed vacation in a small coastal Mexican village when a small boat with just one fisherman docked. The boat had several large, fresh fish in it.

The investment banker was impressed by the quality of the fish and asked the Mexican how long it took to catch them.

The Mexican replied, “Only a little while.”

The banker then asked why he didn't stay out longer and catch more fish?

The Mexican fisherman replied he had enough to support his family's immediate needs.

The American then asked “But what do you do with the rest of your time?”

The Mexican fisherman replied, “I sleep late, fish a little, play with my children, take siesta with my wife, stroll into the village each evening where I sip wine and play guitar with my amigos: I have a full and busy life, señor.”

The investment banker scoffed, “I am an Ivy League MBA, and I could help you. You could spend more time fishing and with the proceeds buy a bigger boat, and with the proceeds from the bigger boat you could buy several boats until eventually you would have a whole fleet of fishing boats. Instead of selling your catch to the middleman you could sell directly to the processor, eventually opening your own cannery. You could control the product, processing and distribution.”

Then he added, “Of course, you would need to leave this small coastal fishing village and move to Mexico City where you would run your growing enterprise.”

The Mexican fisherman asked, “But señor, how long will this all take?”

To which the American replied, “15-20 years.”

“But what then?” asked the Mexican.

The American laughed and said, “That's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You could make millions.”

“Millions, señor? Then what?”

To which the investment banker replied, “Then you would retire. You could move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”
................................

Some of us don't want to wait for "finally". We prefer to enjoy our paid off properties now.
Not everyone wants to build an empire.

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If you're not flipping or turning over cash deals then it's a complete waste for anyone honestly. If you're buying and holding it makes 0 sense. If someone does do a buy and hold you would need an LLC or some kind of protection as well. Buy leveraging your money you can also beat inflation and pay down the mortgage with cheaper dollars and inflation has been here for a while now. If you want something that cash flows, you're probably better off in something safe other than real estate if you're old. Nothing wrong with cash flowing after the properties are finally paid off but it may be a good idea to keep refinancing and turning that equity into more deals too.

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Selling my first home in Las Vegas, house hacked to produce income to improve the property and pay for bills. My equity is not too sizable, about 60-70k. I've lived in the property for about 3 years and selling to house hack a multi-family in East Tennessee and transferring job. I've done big upgrades such as two complete bathroom remodels, kitchen upgrades, some new doors, outlets, windows, plumbing, and more. I am wondering if I should leave the tile in my kitchen and vinyl flooring in the home that is throughout to the bedrooms and hallway. They are in good condition with minor imperfections here and there. I don't see much ROI in them. But I'm worried about resale value. My thought process is that it is basically move in ready, and it is a lower bracket home under 300k. The baseboards aren't perfect but aren't terrible either. Should I just ask a local realtors opinion? I'm only in the house out of pocket 5500 plus improvements of around 10k so almost 16k, rest is payments I made. Had closing costs paid by a 3rd party.

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I'm still in Las Vegas, but I am transferring over there to East Tennessee sometime this year! If you keep the events going I will gladly attend and contribute. I definitely need to network to find an agent, lender, possibly a general contractor down the road soon. I've been to that brewery once before too, nice place.

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I'm not familiar with Philly, but I do know that people that do not live at the residence shouldn't be parking at the address. Establish signs and call a tow truck or post a notice on their vehicles saying they will be towed. As for the other side of the duplex, is it fixed up and rent-able? If so, get paper work ready for rental agreement and list it for rent. Make the rental stand out if you need to vs other rentals. Post on craigslist if you'd like too.

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Hello, to all who may read this post!

I'm brand new to biggerpockets but have heard of it's existence from George Gammon (real estate investor),and finally here to learn all I can and help bring a different perspective to the forum! I currently own a home that I am house hacking. Plan to sell as a short term flip to start investing in multi family and single family homes in Tennessee while moving there this year! I do not know anyone in Tennessee, and I am planning on building connections there and getting to know like minded individuals. My transfer for my current career will land me in either Chattanooga, Knoxville, Maryville, or Johnson City, TN. I will be looking for a great real estate agent, broker and property manager this year to work with for decades to come.

Thanks for reading, I wouldn't mind leaving contact info if anyone is interested in connecting.

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I'll be selling my home here in Las Vegas in April/May 2020 and investing in Tennessee while moving there around the same time. Possible multi-family house hacking as well with 40k down on my own. My father wants to invest in real estate (following my lead) and wants to go in 50%. I do not really wish to do this but it could lead to better cash flow or better opportunities as we were planning to do a trust anyways. Are there any requirements as to put the title in my name or funding the loan with both parties or gifting the money to me? I would love to just invest on my own and help my father to invest in his own portfolio though. Seeking options and advice, thanks in advance.

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All Forum Posts by: Travis Jacobs

Travis Jacobs has started 5 posts and replied 28 times.

Post: Convince Me Why Buying All Cash Is Beneficial

Post: Convince Me Why Buying All Cash Is Beneficial

Post: Convince Me Why Buying All Cash Is Beneficial

Post: Selling first SFH househack with final improvements in Las Vegas

Post: June East TN REI Meet-Up LIVE IN PERSON!!!!

Post: First house hack philly

Post: New Member from Las Vegas, NV

Post: First time investing with OR without a family member?