All Forum Posts by: Allan Smith

I've noticed that for months now folks are posting about STR questions more than anything else, showing the rise in popularity for newbies to venture into this strategy. I've been on BP for years and my vague recollection is that posts used to be more about wholesaling and marketing back in the 2017 - 2020 era.

I wonder what this means for REIs playing the long game. What trends might be budding or ending?

I suspect the golden era of STRs is over now that the masses with lower expectations for profit all want in. I don't know what it means, but I just find it interesting that so many of the questions on BP are about STRs now.

This is an amazing time to buy. Some would say we've already passed the low point, but even if we haven't, you will always look back on now as a good price. Plus, who cares what real estate does in value in the next year or two, long term it will go up and maybe you will get some cash flow out of it.

Assume that rent collection is no where near what they claim it is. And assume 50% will go vacant after you buy.

Hire a prop mgr as the things you are in the dark about are the most important things. Mess it up and you wasted your money and time on the investment.

insurance is simple, anyone who does homeowner insurance can handle that.

No seller or closing office accepts credit card for housing tender. I assume you know that. If you're talking about using a credit card for a balance transfer, it does not matter at all where the cash comes from. The title office just wants money wired in. Your lender May care however.

HELOCs should be used for projects with 12 month or less timelines. So zero syndications. 

however I think your risk profile is decent if you invest in a 6 month flip with someone passively, that kind of thing.

remember, these lines of credits get amortized if you're not able to pay it back, so what you need to do to calculate your risk is make sure you have the cash flow or income to float payments if all goes to heck.

You are transferring assets to llcs for risk protection. This, behind the back of the lender, who may now call the loan due: a massive risk.

do you see the irony here?

people seeking to feel like official business owners feel pressure to have and own LLCs. In many states, all this does is open up their income to more taxes. Insurance can provide liability protection.

and if the last deed transfer in the title chain for your property is your personal name, just how hard do you think it will be for an attorney to shatter the shell of the llc?

If your day job is around $15 an hour or less, then yes you should self-manage. I like buildium.com for the property management software because it's affordable but still does the main heavy lifting. You will also need local vendors like a handyman, cleaner and perhaps a realtor who can take care of keys and lock boxes and showings for you.

if your day job makes more than 15 an hour, you are not really saving very much money at all unless it's a $5 million property or something crazy like that. Property management is a job and quite honestly it does not pay very much until you have years and years of processes and systems built up for Automation and efficiency.

At the end of the day it's the owner's decision who does what repairs.

Only thing I can think of is to sell it and get properties in better neighborhoods. Not really a solution but more of a long-term strategy.