All Forum Posts by: Adam Apalategui

I just did 2 SFR's with US Bank @ 3.5%. Fee's were very reasonable, but their process was the worse loan experience, by far, I have ever had. They had to ask for four extensions, each time assuring us the time they were asking for was all the time they need. This was despite a 10 years relationship, 30% down and more than either loan (alone) in their bank. It only happened because my wife kept calling up the food chain until a Regional VP called the folks we were working with and made it happen, but they missed their last deadline even so...

So, good rate but a big negative on all else for US Bank. We are now shopping for a new bank in Las Vegas...

@Stephen Anderson since you have 1099 income you might explore a Self Directed 401k. Set yourself up as a LLC, if not already done, and you may be able to use this to avoid taxes on both your and the 'company' contributions. Then invest the proceeds in real estate. LTV is lower, but since it's a 'non recourse' loan the source of your income doesn't matter. May or may not fit your situation but worth asking. I am a client of Sense Financial and they could tell you more, see if it works in your case pretty quickly.

I am not a CPA and you would want to check tax implications for your situation with a qualified advisor.

Best of luck...remember to breath and have fun!

The ROI wouldn't interest me either...not horrible, but not that good. Unless there is some other play. Is there a cost to make it a duplex?

Adam Apalategui

If I felt good about the situation with the GF I would sell it and leverage the money into 5-6 nicer turnkeys with a reputable and well vetted company. Put enough down so cash flow is safe even if rents drop and then just plow the cash flow into more units or repaying 

I would pretend they don't exist in my mind and start saving for a house with the GF. In 10-15 years you will have amazing options...

Phil Frost, Mainstreet ROI also has some good resources, guides.

Google owns Youtube, so current Youtube videos on your own channel will help. Being mobile responsive is a big deal these days too.  

Hope this helps.

I'm going to agree with @JasonD, in my case at least. College also gave me solid background and confidence.

That said, you have to be strategic about it. My parents had saved, I worked hard and saved, so graduated Univ. of Oregon without debts. 

Also have to be strategic about choosing a major...big loans for a Medieval Studies degree will test that ROI, where my business degree has had solid returns...

That said, I agree Univ. isn't for everyone. Community Colleges and other training programs have come a long way...

Moses,

Search the threads, it has been discussed quite a bit. See the Morris Invest thread a recent investor had to file bankruptcy after following this strategy.

The sales pitch is you buy the property interest free, rehab or stabilize it to a higher value and then refinance out out the credit cards.

Sounds good, until the property doesn't appraise higher, the interest free period is up and now you have a very high interest loan on a property. Also, think about the credit card and loan (if you have one) apps you signed along the way. They may have fine print that doesn't allow what you are doing, or borrowing the down etc. so there is potential legal liability too.

Bottom line, IMO, is that it can work, but it's A LOT riskier than the sales pitch makes it out to be...

@James Henry I used to be in the car business (let the hate begin :) ) and this does happen. Others are right, it's their car until the loan is purchased.

I would definitely go the the credit union, but if you're up for a challenge I would return the truck first. You might be surprised the deal you can get on the now used truck if you have cash in hand...

I wouldn't hesitate to offer them $1,000 less, more if it's well equipped and not in high demand...

But @Ali Boone weren't you just on a Morris podcast?

I agree with @ashleykehr that there is a buzz about tiny houses. 

We stayed in this hotel https://shelterednook.com/ in Tillamook Oregon and I was able to talk to the owner. She said most guests stayed because they are tiny homes, not in spite of it. They were heavily booked 6 months in advance at a price higher than low end hotels. It was nicely appointed with WiFi, personal barbecue, shared campfire area, in room heaters etc. Selling more of an experience than just a place to stay.

Of course each market is different and as others have pointed out the zoning/rules could be deal breakers. They are in my home town, Bend Oregon.