All Forum Posts by: Ryan Landis

@John Blanton to be honest, the 2.8% was a lot higher than I was expecting. Everyone is different, but I almost treat these as emergency funds (i.e. I not worth the risk of letting my kid not go on the field trip). So, not sure on the exact amount here, but I imagine you are talking sub $20K. If that is the case, I would honestly just call the upside that you are missing out on a wash and don't worry too much about it. That is just my take though. If you were in the 0.005% range I think you might want to investigate a better option ;)

@Gregg Fratto #1 thing I can recommend is anything you do with a family member, make sure to get everything clearly in writing. Also, just make sure your hard money lender/etc. knows what is going on. They might not care (but they also might).

@Jason Graves congrats on all of the units! I will say one thing - your wife is your better half, so just don't discount her opinion. I don't know what your daughter wants to do when she grows up (doctor, teacher, etc.) but depending on what she does want to do, and what she is doing now, you only get to be a kid for so long. So maybe you approach it from the perspective of she gets to work on it but cap her time commitment on it (i.e. you step in after 5 hours a week or something like that). Just something to keep in mind. Once you grow up, you don't get to be a kid again :)

@Dale Zanker something big to just keep in mind is the park rules where you purchase the park. Just do the diligence there (I am sure you will) because not every park owner will allow everything to go smoothly.

Cozy is nice - I use it as well. For those using QuickBooks or any other software (Freshbooks, etc.) the trick is just figuring out if you prefer to track in that or excel. If you have one bank account for example, I would just say use excel add a couple of columns with dropdowns and call it a day (saves you the monthly fees and there is no learning curve).

@Nick Alexander my general gut reaction is don't do it without flying out at least once first. If you really can't make the trip down, have someone do a couple Facetimes/etc. and that will help out. The reality is people are nervous about the following - getting taken advantage of on the buyside (the way to limit that is test out different people and find someone you like/trust or go big once and reduce the number of transactions you need to do). Then, once you own it, you just need to make sure the market/area has enough people in the business that you can go to someone else if someone you work with doesn't do right by you (i.e. avoid the market with 500 people in the City because you might not have someone else to turn to if things go south). Outside of that, always remember people do it all the time. Just think when you purchase stocks, you aren't invited into the board room of the companies. At least in real estate, usually there is a lender sanity checking your ability to not lose your shirt and you get to contribute to the decision making (for good or bad).

@Tyrone Marson are you planning to do the condo conversion or putting money into a deal someone else is doing? In a lot of areas, there are long timelines and the professional fees to get the project done need to make sense to still make money when it is all said and done. 

Most apartment buildings are also not built the same way as condos (construction quality, etc.)

@Benjamin Sklar really good bookkeeping and accounting software that ties into the property management/rental side of things (i.e. have you ever tried to use the accounting in appfolio - it is not very user friendly). The same goes with some of the other platforms out there (i.e. Cozy doesn't have the bookkeeping side).

@Devon Rollison so I didn't really check your math, but the way to think about it instead is the property would sell at a 6 cap. If you purchase it at a 10, then you got a really good deal on it and assuming there is a buyer out there that would pay the 6 (let's call that market) then it works. Basically what I am trying to say is when you are purchasing you are getting the discount on the buyside relative to what the market would pay. Your purchase cap rate is really just a way of thinking about the discount you are getting when you buy it

@Ty Kashmiry I would imagine you should get interest at 10% right now. The loan amount is a big deal ($50K loan at 10% interest is not worth it without some points, $1,000,000 loan at 10% is a good amount of money).

So to answer your question, I would expect 1-4 depending on loan size and somewhere between 8-12% if you aren't doing something out of the ordinary.

That being said, I don't know your backstory and experience so that will be a huge factor (as well as your personal bank roll).