All Forum Posts by: Blake Dailey

Cash reserves is any liquid form of cash that can float you in an emergency. Cash in the bank, an established line of credit, liquid investments even. A 401k or retirement account is not liquid so that would not serve as a cash reserve. The purpose is for if something crazy happens, like a global pandemic, and everything shuts down that you have enough cash to cover your fixed costs for a period of time (6 months or more to be safe). For each property I buy, I ensure I have enough held back to cover the fixed expenses for a few months and then take reserves out each month to hold in a reserve account for when something does happen and I need it. Also for when things break or as big ticket items wear out over time. The cash piles up until needed and the cash flow after all of those expenses is reinvested for growth. 

When performing a 1031 exchange a seller can sell multiple properties in a single exchange, and exchange them into a single replacement property that is like-kind of equal or greater value. And I believe it is property value not loan value. So yes you should be able to follow that strategy however I would definitely talk with a tax advisor before you actually do it - but it sounds like a good strategy to follow. 

It depends on the situation. Short sales usually have to be approved by the bank. The best way to execute a subject-to deal is also by notifying the bank. If you can negotiate that with the seller and then sit down with them and call the bank, and then the bank okay's it you should be good to go. I've went this route and it involved sitting down with the seller and calling the bank together. Usually the bank will accept what is owed to them and allow you to take payments if you fill out their loan assumption application and are approved. This may involve you paying the balance, or just reinstating payments in your name - that's why I say it depends.

@Dave Meyer this will be a great, useful tool. The BP podcast episode #379 had a lot of great info on this and how to apply it to your investing. 

@Paul Shannon @John Teachout @Aaron K. all great points! My wife and I have only ate take-out from local restaurants when we haven't cooked at home to try to help out and it eerie to see empty restaurants and us being the only car in the parking lot at a high time... that can't be good. And it's like that for almost all local businesses, even the big chains, because people don't want to go out. Maybe that fear opens opportunity? but where?

This is a virtual meetup held over Zoom to bring local Panama City investors together to share advice, connect, and keep progressing even while covid is trying to slow us down. Call in from the comfort of home, pour yourself a margarita and celebrate Cinco De Mayo working towards your financial future!

I am curious what everyone's thoughts are as restrictions begin to ease - at least they are in my neck of the woods in the Florida Panhandle with beaches opening up. What should we expect? A second wave?

As an multi STR owner I would love to see people start traveling again and and spending money in the local economy to help small businesses, but will it fix the damage already done?

I only require a co-signer if a prospective tenant meets all of my screening requirements less maybe one thing - usually a credit score, or if the tenant is younger with only one or no past references from landlords. If a tenant is the only one living at and paying for a property I won't be flexible on the amount of income they make (has to be 3x rent), if they have past evictions, or if they have a bad background check. But if my credit score requirement is 650 and they are at 600 and everything else looks good and I called their past landlord and they check out, I will be flexible but require a co-signer for added protection should the tenant not pay. They co-signer is responsible for the lease if the tenant does not pay. The co-signer has to meet the screening requirements. I don't care if the co-signer has pets or is a smoker (things I do not allow for renters).

@Stefon Pegram start by attending local meetups and networking with other real estate investors in your area. Find the investors who are consistently doing deals and are doing what you want to do and find a way to provide value to them. If its a successful wholesaler, provide them with leads of empty houses close to you. If its a successful flipper, offer to help on their flip for free while you learn how things are done. Provide value to others and they will shower you back with it.

As for starting with no money, you can begin by driving for dollars which is identifying run down properties and then looking up the owners on the county website and then sending them letters or calling them. That cost basically the price of postage and gas which is really cheap right now so go get in your car and start looking for properties. Best of luck!

Cash flowing property purchased at below market value - it's hard to go wrong! I am personally shifting to multifamily investments to capitalize on the reduced risk provided by multiple units under the same roof and analyzing for cash flow and value-add.