All Forum Posts by: Wes L.

Should I charge a late fee even though the online bank draft tool says they sent rent two days prior to due date?   Most tools give a 5-7 business day window.  Last month funds didn't hit till the 7th and rent is due on the 1st.  Thanks.  

Dave,  thank you for your reply.  Would another tax free sale be:  if you inherit a property on 05/05/2022 and choose to sell it 05/06/2022, you owe gain only on any gains that asset made since you inherited it?  'Stepped up cost basis'

Would a 1031 be needed to defer cap gains since you've owned the property for 8 years?  Rookie. 

Marcus, thanks for your reply.  That's a very important point.  It's a smart business tool but bad consumer tool/master.  The note I'll have is a fixed rate line of credit for 30 yrs.  Interest only at the beginning for better cash flow management.  Say I pull $100k it costs $3k per year in interest. My current rentals will pay for this with a cashflow of $400 per unit.  And I now get to go find more problems to solve...instead of properties to buy.  For years, I've told myself debt wasn't a tool but evil.  Not anymore. 

 Hi Mike, thanks for your reply.  I think you're right. This is a mindset that is deeply rooted in the fear of not believing in ones ability to manage a business so, just keep it simple and 'attack all debt' .  My issue was, I got out of debt but got bored with passive index fund investments, didn't see the scale I'd like to see and desired for more active 'real' investments I could control.  I even dabbled in options trading, cypto and made money (still do a little) but even that didn't seem 'real'.   

Currently renting at 30% CoC, Cap Rate 30% and a local bank offered 100% of purchase/rehab cost plus 40% more, as a line of credit for 2 years against the property. Been a Dave Ramsey 'anti debt' cult member for years. They are offering more 'debt' than I've ever taken on. Now, what do I do with all this money / 'debt'? Mind shift from anti debt to debt is kinda messing with me. Guess I need a cult therapist more than anything. I didn't realize how much I enjoyed transforming a distressed property and adding value to it, even in a lower market.

Jason, I'm an insurance agent in Texas ( REI on side). Is your policy a 'replacement cost' policy? Keep estimates and receipts showing cost of material and labor and email them to the claims adjustor and your agent. Most policies have a replacement cost 'hold back' if it costs more. How much is the deductible? Call your insurance agent and hold them accountable to what the policy actual says (terms, conditions etc). Cheers.

Lydia, thanks for the message.  Sounds great. Maybe we'll see ya there.  Thank you. Wes

Looking for experienced REI (fix/flip, Multi-family, RV park, storage units, farm/ranch) in the Lubbock, Wichita, Abilene, FT Worth area.

Thanks for your replies and dm's.  Looking for financing to finish 2 rehab projects on 2 single family homes we own, with no liens, while being self-employed.  Appreciate the feedback and BP.  w