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10 July 2024 | 9 replies
Scenario 2 - 9.5% Yield (Multiple notes) vs Stock at 6%:For this scenario we are going to use the same numbers as above the only difference we are going to be buying a new note with all of the money we get after ever year.Year 0 - 12k to buy the note Year 1 - We have 3024.24 (252.02 * 12) Year 1 - We buy a second note 3024.24 at 9.5% for 4 years -- 48 payments of $75.98.Year 2 - 3024.24 (1st note) + 911.76 (75.98 * 12 -- 2nd note)Year 2 - We buy a third note 3936 at 9.5% for 3 years -- 36 payments of $126.08.Year 3 - 3024.24 (1st note) + 911.76 ( 2nd note) + 1512.96 (126.08 * 12 -- 3rd note)Year 3 - We buy a fourth note 5,448.96 at 9.5% for 2 years -- 24 payments of $250.19.Year 4 - 3024.24 (1st note) + 911.76 ( 2nd note) + 1512.96 (3rd note) + 3002.28 (250.19 * 12 -- 4th note)Year 4 - We buy a fifth note and final 8,451,24 at 9.5% for 1 year -- 12 payments of $741.03.Year 5 - 3024.24 (1st note) + 911.76 ( 2nd note) + 1512.96 (3rd note) + 3002.28 (4th note) + 8,892.36 (741.03 * 12 -- 5th note).Total: $17,343.6 While this second scenario does outperform the 6% stock market return, it only give you a 7.64% annualized return while is better, if we implement scenario 2 in a self directed IRA where lets assume they charge you $150 every time you buy a new asset that would technically be $750 less of profit giving you a profit of $16,593.6 and a 6.7% annualized return.
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10 July 2024 | 7 replies
If I'm in your shoes I would checkout any local RE meetups happening nearby, that would be a great spot to meet some other folks in your shoes and/or other lenders who might be able to give their perspective if it makes sense to pull out money from your home rn or not.
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8 July 2024 | 15 replies
In the long run you will save a lot of money while at the same time earning way more money.
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9 July 2024 | 7 replies
So far it seems the only place appraisers can find actual leased properties is through whatever they have access to on the MLS.
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9 July 2024 | 4 replies
In this scenario, each member doesn’t actually own real estate, they own a business (that owns real estate).If that is the case you have two options: 1) The LLC performs the 1031 exchange and continues to achieve the goals of the managers through changes or details added to the operating agreement and subsequently consider dissolving the LLC. 2) You dissolve the LLC and reform as Tenants in Common *prior* to the sale of the property.
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7 July 2024 | 42 replies
I hired this contractor that I found on the bigger pockets website actually and I ended up getting burned by him.
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8 July 2024 | 27 replies
It is worth the money spent to have your questions answered specific to your location and situation.
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10 July 2024 | 2 replies
Now, I have not run out of money yet....I am just trying to get ahead of this before this does happen.
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8 July 2024 | 5 replies
He will finance building the house. this can be done however you want - my recommendation where I see things go wrong is everyone is high and drinking the kool aid when they go into these deals thinking they are going to be making all this money.
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9 July 2024 | 16 replies
Being in the Dominican Republic, I imagine that it could be more but it sounds like it's a luxury property so it could actually be less. @ 50%, the net income would be $120k, which would give you an ROE of less than 7%.