All Forum Posts by: Zac Boelkow

@Jacob Lapp

I am in RE & index funds in retirement accounts. I cashed out my taxable accounts before the crap hit the fan. I am watching the market close for the opportunity to buy as much index funds as I can afford. Post coronavirus the market will go up. Just invest based on your overall financial situation.

Short answer, YES. Buy as much as you can afford while the market is on “sale” ;)

Nah. Leverage is a tool created to keep you impoverished. Proverbs 22:7 The rich rule over the poor, and the borrower is slave to the lender. It does seem as if the majority on BP use and support leverage. I use math. What I enjoy about RE is that it is mathematically simple. Using leverage does not "net" more financial returns or speed up the process. Debt or "leverage" only enables you to buy something that you otherwise could not have afforded. I would never suggest leverage as a good strategy and personally only use it minimally. If an owner wants to hold finance for a few years and I have the cash available I have done that. To me, personally buying one $120,000.00 duplex for cash is far better than buying fve $120,000.00 duplex's with 20% down on each one.  

To each their own though. What works for me wont fit all..

Networth = $850,000.00 in "cash" assets, age 42... IMO

Investment Info:

Single-family residence other investment.

Purchase price: $132,500
Cash invested: $25,000

I just bought a new primary residence and because I am always talking, buying, and working in real estate I sold my old primary by word of mouth! Sold it "as-is" and it does need some work.

What made you interested in investing in this type of deal?

After owning a primary house for a long period of time I have come to the conclusion that home ownership is the biggest liability for the average american they will encounter in their lifetime.

How did you find this deal and how did you negotiate it?

Negotiated the sale agreement by word of mouth. The buyer backed out after sending me a contract. I called the buyer direct to understand what information he had. After speaking with the buyer we agreed on some minor adjustments and now we are back in contract and everything looking good.

How did you finance this deal?

30 year mortgage with $5000 down.

How did you add value to the deal?

As a primary residence I maintained the property and poured money in to it. New roof, new windows, paint, new hvac, new pool pumps, landscaping, appliances, and on and on and on...

What was the outcome?

I had a nice property to live in that I could afford. Sold the property when it was time for me to move on. Sold the property in as-is condition without having to fix anything.

Lessons learned? Challenges?

Paying off your primary mortgage early will be your best financial move. Dont pay too much or buy too much for your primary residence. A primary residence is nothing but a huge liability.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The buyer hired a realtor and he is paying for that out of his own pocket. I am having a realtor friend help me on my end. My realtor is working for free because I did a couple deals with him last year. Closing with a real estate attorney that we have done deals with prior. I would recommend working with paid professionals.

I just had an open house showing at my duplex for rent. On all my advertisement I stated 3X income and 600 or better credit score. As I am going through the applications I received today there are multiple applications that stated they make less than 3X the rent. There is, however, one that stated they make more than 3X the rent. So I am going to verify income and references on that applicant before running a background/credit check. My question is: at just the application phase should I call the others and notify them that I have a qualified tenant after I get a good background/credit check first? Or just blow them off? It does not make sense to run their credit/background check if they willingly admit that they do not make 3X the rent and I have an applicant that does make 3X the rent.Also one applicant has an eviction. Do I call that person and just let them know I will not rent to someone with an eviction?

Thanks Guys!

@Kenneth Garrett

I like this idea. It sounds like more work and I can see the benefits of taking this extra step. Some may score high in income and credit while others may score high in communication and cleanliness... it’s not always so cut and dry. Great idea here 💡

If I have multiple qualified tenants that meet my minimum requirements and choose the one that best fits. When I write the other tenants a denial letter do I state that I had multiple applications and the property was rented to the highest qualifying tenant?

Also I have a application from someone who falls below my minimum credit score (because of a long story, ex-boyfriend, and a repossessed car) and has a huge income and is killing it at their job. I did verify through smart move the car is the only issue bringing the credit score down. Everything else on their credit report  is fine. This potential tenant has had the best communication with me and seems to align with exactly what I looking for. Is it an issue if I accept her over other qualified tenants who meet both income and credit score parameters? 

Thanks Lacey!!! I have decided to stop investing in RE for now and just pay my primary off as fast as possible. Then I will be back. I like bought and paid for properties better than using leverage :)

While Sitting in the title company signing. My realtor and the title company agents talking how hard it is to get deals currently. I agree deals are difficult to buy profitably currently. But there are still “deals” to be had. This is my second property I closed in the last six months. Neither was “easy” and both required pulling everything out that I learned on BP, books, and courses. There are still deals available. Do what is required in current markets and you will find a lot of deals. I found enough that I need to slow down and catch up with myself ;) thanks for all the help, support, and encouragement BiggerPockets!!

Last year I opened up a Roth IRA and A Roth 401K accounts. It is a delicate balance between RE, Stock Market, and Living Expenses. Especially as I prefer to buy and hold with cash purchases without the use of leveraging. My portfolio is lop sided in that I am heavy in RE. Last year I pumped up my Roth Accounts and earned 16.25% for the year. Much better than any property I currently own and much easier(lol).

Curious who else is doing this and with what company are you investing with? How you are balanced in your portfolio. I am 42 years old and consider my stock market investments to be my retirement money. I also love to work and realize that I will probably stay doing something even if I were to retire. So I do not think that I will require my stock market money. That being said I am 100% in stock index funds as I will have 30 years of growth...

@Brian Beck yes I took the DC Course. Then I went back and coached it up until now. I also took the Chris Voss course. If you are ready to go I would definitely encourage you to do the DC Course. If you do the benefit will be endless. Warren Buffet has repeatedly said that he attributes all his success and wealth to the DC Course. Of course so to many others...