All Forum Posts by: Brandon Weis

A family friend recently bought a condo in South Tampa and would like to run an Airbnb when they are not there. They are looking for a property management company in the area interested in taking it on. If anyone has any contacts, please pass them along!

I'm interested in this thread. We are currently using Chatterbox but looking for alternatives.

 Thanks for the response @Jaycee Greene! I want to clarify, when I say SBLOC, I do not mean borrowing on margin to buy more securities in a brokerage account. I'm talking about a line of credit against securities to go out an buy real estate. I find there is often confusion and people usually just assume normal brokerage account margin. 

I understand the margin call aspect/risk of it. Where does one get these lines from? Does it have to be from the same institution as the brokerage account? Or can someone get them from another lender - whether a large national lender or online platform? The few bankers that we work with have given me blank stares when I've asked about this. 

I'm asking about this for one of our owners who has his brokerage account at Vanguard, but I do not believe they offer the product we are looking for, so I am wondering if we need to transfer his brokerage account elsewhere or if we can get a line elsewhere for his account at Vanguard? I hope that makes sense.

Does anyone have experience with SBLOC's and what institutions do you recommend working with? They are essentially borrowing against your brokerage accounts. This is a way to get liquidity from your investments without having to sell - just like a HELOC. I have heard of them but would like to hear from others with experience as they are not super popular due to them only being for wealthier individuals with the knowledge of them.

I cannot speak for either of those. Our property management company uses Yardi Breeze, which gets the job done but has its quirks - mainly accounting-wise. However, it is only for larger landlords as the cost only makes sense at ~100 doors.

One issue I see is when you "buy them out" of the loan, the whole loan will be due per the due on sale clause in the mortgage. The bank will likely not let you assume the note, especially if your parents are the one living there - not you. It is not the end of the world, you could get a new mortgage on the property to pay off that original loan, but it will then be treated as an investment property so you would need 20-25% down. If you use the same lender and have a relationship, they will probably let you use equity in the house as a "down payment" but if you put 3.5% down on an FHA loan, you likely will not have that much equity, so you will need a considerable amount of cash out of pocket to "take over" the loan.

I find this result interesting. Yes, most people's most valuable asset is real estate (their primary residence). But a large percentage of the population that owns their home does not tap into that increased value or even knows what it is. An unrealized gain on someone's hypothetical PFS, that they are not even aware of, does not actually do anything for their wealth if they are not using it.

Given that most common people do not grasp real estate as an investment like Bigger Pockets users, I'm surprised stock investments were not the top voted answer.

The company we always uses lets us know the payback ratio based on the expected bonus depreciation from their estimates right upfront. It makes our decision very easy and cuts right to the point.

Careful Makellis! You'll bring more people to our hidden great metro! Joking aside, we do believe Lima is a great market to invest in, and we will continue to grow here in both units we own and units we manage!

Most important things for a market:

1. Jobs

2. Jobs

3. See #1 & 2