All Forum Posts by: Carnet Williams

For class B/C/D properties collecting rent is going to be the biggest risk coming up as income dries up. Even if there is a stimulus check of $1000, that money is going to food before it goes to a landlord. With eviction put on hold it is landlords that are going to feel the brunt of constrained dollars in the market. I have not heard of any deferral for mortgage payments so banks/note holders are still going to want their money.

I am scheduled to close on a SFH in ATL next week. I went back to the seller and dropped my price by 8%. This was calculated at the time to be about half of what the stock market had dropped (after today we are in the 25% or greater range). I was prepared to walk away from the deal and lose my EM. The seller at first said no, so we terminated the contract. The next day they came back and accepted the offer.

So before you back out of a deal (and it was a good deal right? you weren't on the fence...) try going back to offer a new price and see if that sweetens the deal for you enough to weather the rental market storm.

@Adam Esposito I just sent you a DM with my contact info.

Another thought I had was how best to use Census data? It's a ton of information but would be great to see if there's a way to sort/filter by criteria that an investor is most interested in. I am realizing that there's a bit of art and science to investing. How I want to invest is going to be different than another person even though we may overlap in fundamentals of looking at a deal.

If we all used the same criteria to pick markets to invest in, we would all be scrambling and competiting with each other and there would only be one "right" market. That's not the case as we can all see. I'm guessing you all each have some "recipe" you are using? What's in yours?

@Alejandro Antonio Taylor JR I'm just starting out myself and have 8 doors. My recent close in Dec was a fourplex in MO primarily for passive income (no rehab needed). With current rents I am at 10.5% Cash on Cash (75% LTV) and once stabilized in the next six months will be at 14.5%. I aim for 15% cash on cash and do not start below 10% with the goal to get to 15% within 12 months at the latest. Hope that helps, but would love to hear other thoughts. As for selling, it depends if you are a buy and hold or if you are looking to BRRRR. I find with closing expenses, minor cosmetic rehab, and selling costs it doesn't make sense to sell prior to 4 years (assuming 3% appreciation) and then do a 1031.

Greetings,

I seem to see this question come up a bunch: What out of state market should I invest in? The prevailing answer seems to be invest near where you live (or have connections such as family) to begin with. For many people like myself that doesn't work (I live in CA) well. So the questions are:

1) Are there any tools/service out there that help you filter out certain criteria and rank cities that match (e.g. growing population). BP has tools to analyze properties (along with Dealcheck), but are there tools to analyze markets?

2) I have been analyzing market based on my own personal criteria.

- Growing population

- Diversity of industries (particularly like technology)

- Sunbelt when possible

- University population

- High rent to price ratio (I'm looking for passive income down the road)

- Property tax rates

What are some criteria that you use to analyze markets? I promise to summarize all your answers into one post at the end so we can all crowdsource ideas.

Greetings,

I seem to see this question come up a bunch: What out of state market should I invest in? The prevailing answer seems to be invest near where you live (or have connections such as family) to begin with. For many people like myself that doesn't work (I live in CA) well. So the questions are:

1) Are there any tools/service out there that help you filter out certain criteria and rank cities that match (e.g. growing population). BP has tools to analyze properties (along with Dealcheck), but are there tools to analyze markets?

2) I have been analyzing market based on my own personal criteria. 

- Growing population

- Diversity of industries (particularly like technology)

- Sunbelt when possible

- University population

What are some criteria that you use to analyze markets? I promise to summarize all your answers into one post at the end so we can all crowdsource ideas.

@Katie L. thanks so much for the feedback. I really enjoyed your article and it provides some food for thought indeed. You mentioned an umbrella policy.. would we need one for each property? My wife and I have a general umbrella policy (that I need to followup on to see if it covers slip and falls and other incidents that can happen on a property). 

@Scott Johnson I realize that legal/tax advice is not something that can be given in the forums. I'm more interested to see how other people are thinking about these issues and what sort of criteria goes into the process. Of course I will always confer with a lawyer/CPA before moving ahead, but it would be super helpful to hear how others are thinking through these types of issues when getting started.

Greetings. There's been a ton of discussion around when to form a LLC. I would love to solicit your advice as I'm guessing many of you have gone through the same thought process. A bit of background info:

1) My wife and I after 30 years of working have a healthy stock portfolio. Enough that we want to make sure that this asset class is protected from any potential liability that may come out of our REI

2) We currently have a primary residence (in CA) and five rental properties (1 CA, 3 Minn, 1 MO). We plan on aggressively purchasing more in the next 3 years by allocating by liquidating some of our stock portfolio to REI

3) We have an old trust, and thinking about creating a new one so we can include our new properties

So the questions are:

1) When is a good time to think about putting our properties in a LLC as a way to shield our other assets. I know we need to very strictly keep all rev/expenses in the LLC (e.g. separate bank accounts, etc) and then also quick deed title to the LLC. The loans are still in our names, so not sure how much exposure that gives us. Also should we create a separate LLC for each state that we own property? Should the LLC be in the same state as the property?

2) As for our family trust. Is it ok to create a single revocable trust or should we be looking at creating two trusts? A revocable for our non property assets and an irrevocable for our REI? I read that an irrevocable trust doesn't allow liability to crawl out of the trust to other assets.

I realize these are definitely advanced questions that a lawyer/CPA should be answering, but they all seem to have different opinions. I'm interested in what you all have done as practical real life suggestions/advice.

Thanks!

Greetings. There's been a ton of discussion around when to form a LLC. I would love to solicit your advice as I'm guessing many of you have gone through the same thought process. A bit of background info:

1) My wife and I after 30 years of working have a healthy stock portfolio. Enough that we want to make sure that this asset class is protected from any potential liability that may come out of our REI

2) We currently have a primary residence and five rental properties (1 CA, 3 Minn, 1 MO). We plan on aggressively purchasing more in the next 3 years by allocating by liquidating some of our stock portfolio to REI

3) We have an old trust, and thinking about creating a new one so we can include our new properties

So the questions are:

1) When is a good time to think about putting our properties in a LLC as a way to shield our other assets. I know we need to very strictly keep all rev/expenses in the LLC (e.g. separate bank accounts, etc) and then also quick deed title to the LLC. The loans are still in our names, so not sure how much exposure that gives us. Also should we create a separate LLC for each state that we own property? Should the LLC be in the same state as the property?

2) As for our family trust. Is it ok to create a single revocable trust or should we be looking at creating two trusts? A revocable for our non property assets and an irrevocable for our REI? I read that an irrevocable trust doesn't allow liability to crawl out of the trust to other assets.

I realize these are definitely advanced questions that a lawyer/CPA should be answering, but they all seem to have different opinions. I'm interested in what you all have done as practical real life suggestions/advice.

Thanks!