Upfront Mortgage Lenders - Where To Start When Finding Debt Financing
Saturday, July 30
I had a lengthy conversation with a fellow board member this week about his quest to find the cheapest source of debt financing for his projects. He was trying to navigate the ridiculously-complex world of mortgages and HELOCs in an effort to keep his cost of financing as low as possible. I wro...
The Annual Loan Constant - What It Is And Why It's Important
Friday, July 29
Cash Flow is talked about ad nauseum on the boards. However, few people ever give a precise or correct definition of cash flow. John T. Reed has the best article on the internet about positive cash flow. In it he describes two scenarios where you are likely to find a property with positive cas...
I Call BS On The Perceived Inflation Worries - Put Up Or Shut Up
Friday, July 29
So you're worried about the affairs of our country. Who isn't in this toxic political environment? Believe me, I get it! However, please quit posting about how our country is soon going to have a worthless currency when your affairs aren't organized to prepare for it. Put your portfolio wher...
Carrying Properties At Historical Cost When Seeking Credit Lines
Thursday, July 28
I started a thread several months ago to explore people's thoughts on carrying properties on their balance sheet at historical cost. The concensus seemed to be that people like this approach because of the worry that values will be inflated by marking them to market. I guess nobody worries abou...
The Failure To Account For Time During Rehabs
Monday, July 25
We have been busy bees lately chasing rehabs and new builds in Austin and CRE deals across the country. One of the constants I have started to see is that experienced investors CONSISTENTLY fail to account for both their own time and time in general when evaluating how to deploy capital to proje...
The Perils of The 50% Rule Myopia
Friday, July 22
The rhetoric about the 50% rule of thumb has died down on the board recently so I thought it may be time to have a more rational discussion about the belief that you can summarily dismiss the other 3 major profit centers in real estate. I have other blog posts about the key return drivers and ho...