All Forum Posts by: Alexandre Marques dos Santos

@Mark H. Porter

Would you explain me what NNN strategy is? As detailed it can be. Appreciate

@Bradley Swett

The bank will appraise your house, and apply sone % to get a total finance.

If they get 90% and appraise your house for 1675, then you need to check the PV of your debt. I guess you took it some time ago and already paid some installments, so you probably own less than 1125.

Then bank will loan you the difference on 90% of the appraised value - PV of your debt.

@Mark Kohn

I am taking this to disagree with most.

Negative cash flow for those who can afford is ok. The matter does not lie if the cash flow is positive or negative, but in the total return of the property.

Assuming a negative cash flow to a low return is a mistake. The fact you have negative cash flow does not tells me the tenor , DP, and other factors important to do the analysis.

So you need to take in consideration the investment and the return. Cash flow negative is a game for an investor with W2, for example. It will give the extra mile of paying low taxes ( enhancing total return of the investment).

Finally, after analyzing the investment, if you can really afford the negative cash flow, go for it. You might have an edge in the negotiation. Just remember you need to have enough not just per month but also for unexpected expenses.

@Jacob Nawrocki

It depends on your financial situation.

Do you need cash to cover for expenses monthly? If not i would go to 15 years. As you mentioned you will have more equity sooner. ( not many will echo my words, specially here in BP).

After 1 year you will have 18 k and could ask your bank to recast, which is pay down principal keeping your same tenor. That will give you extra bucks per month ( installments will drop). In the second year you save a bit more... and on and on... eventually you pay it quickly ( if you dont have any more to invest).

I would also try to calculate the impact on your taxes, trying to match enough income in order to minimize taxes.

@Andrew White

Things to considere:

1). I know you are looking to leverage. Fair. You can grab a great return. But in houses of 50k, the cost of a loan ( closing cost) would kill you. So might be better to go to a commercial loan, doing it in a portfolio level.

2) A 50 k house will bring you tons of headache. An air conditioner will eat 3 months of your rent. Roof maybe 1 year... and dont expect a class c/d to take good care of your house. But expect a fair amount of complains if something breaks...

3). Rotation of families could be another factor. Class c/d will have some kind of bad credit history. Having said that, you will have delinquency and higher than usual rotation. Just think about it

4) to avoid interaction, you will have to hire a PM. Reserve 10% of the rental for it.

5) insurance might cost more than usual, as the property value is very low. Also someone mentioned flood zone. If thats the case, flood insurance might be a must, and its expensive. Not mentioning if flood comes, you might get in trouble with tenants...

Good luck

@Russ Wahl

You have triggered their DTI limit. When banks become more contingent to loans, they look at every angle to avoid risk.

In 2008, i bought my property paying cash ( have just arrived in US) and to open a HELOC, i asked 25% of the value of the house, and bank discussed the credit card usage ( monthly bills). The amount of money was ridiculous and i paid. Two weeks later i was called to the branch. They were complaining the credit card was not zeroed. I ended up reducing the amount of HELOC to 20% cause it is virtually impossible to keep cc at zero for 2 weeks.

My suggestion is to negotiate a slightly lower refi (if you can) or tell them they can use proceeds from refi to pay down those debt.

@Amanda Galindo

Using Lighthouse. Quotes are ok. This year they started to push coverage mentioning replacement costs are higher, forcing me to insure higher than the cost of the house. Also i noticed they been increasing prices too much. So started to look for options ...

Would love to get more names as well

@Jacob G.

Nope. I have 2 LLCs with business accounts setup in Zelle and works just fine.

I setup on banks app.

@Collin Bryston Adams

I use zelle a lot, and i am very happy with it. Not just the money comes quickly but i receive alerts about the incoming, which makes easier to track who sent the money. Also the tenant can set and recurrent payment, which is always nice to have.

Very good option.

@Javaughn Harkness

No money and no credit, theres nothing to invest. Start investing in building your credit and save all you can.

Any investment demands a minimum to put down. Even working with others money... you need to invest in network, brand, etc.

So from now on “ every penny counts”. This is your start.

Good luck