All Forum Posts by: Christian Bors

@Dwayne George  Well, you learned a tough lesson (really not that tough since it still sounds like a good deal).  NEVER take the seller's word!  You should always verify the numbers during your due diligence.  As mentioned earlier, the lease should dictate the rent, not a verbal agreement.  

As far as the house next store, I doubt it is a comparable.  If it is, how come you were able to buy it so cheap?  Something seems fishy there.  Either way, I would immediately get an appraisal, take the appraisal to the court house and challenge the taxes.  Sounds like you should win.  The county will lower your taxes as long as the apprasial doesn't come in too high.  

Final though;  In your current situation, I would check the rents in the neighborhood to really find out what fair market rent is.  Check rentometer.com, local property managers, and my favorite craigslist.  It is very easy to figure out what the rent should be.  If your tenants are below market value, don't renew the lease.  Kick them out, clean up the place, and get a new tenant.  Congrats on getting your first deal.  As for your next one, don't take risks that you can control.  Do you due diligence.  

Good luck.

^

@Edward Stephens @Brandon Hall

@Edward Stephens

Obviously when funding any retirement account with pre tax dollars, uncle same will always want his cut.  However, if you utilized the account correctly, you can pay minimal taxes or perhaps none at all.  This is possible because when you retire from work, your yearly income should drop significantly.  If your income is very low or even show a loss you would be taxed at a very low bracket or maybe avoid taxes all together.  You just have to be smart about how and when you utilize your 401k or any other retirement accounts.  

@brandon hall  You can withdrawal out of your 401k for a first time purchase.  You get to avoid the penalty, however you have to pay taxes since you funded the 401k with pre tax dollars.  With a roth, you can pull out 10k of principal no penalty, no tax.

Horrible idea. Just listen to all your rebutals. Cost of doing the transaction. The hoops you are jumping through. I like that you are thinking outside the box, but I hate this idea. Way too much speculation.

Dan,

If you are going the BRRRR route, couple things. Like most people already said, a lot of lenders will require a 12 month "seasoning" term, however if you call around enough you will find a lender or two that will do refi cash out after 180 days. I know lenders who are willing to do a cash out of 85% after a 12 month seasoning, however I wouldn't recommend that much leverage. Most banks will require reserves on additional rental properties, usually 6 months. However, I found out that my lender will only require a 2 month reserve for a rental if you have 30% equity in a property. Hence, I would only refi to 70% so A) I have a lower payment, better cash flow B) Banks are happier/will require a lower reserve C) having more equity will make it easier to obtain a commerical line of credit once the portfolio is larger.

Also, with the BRRRR I would make sure not to over leverage. Leverage is a powerful tool in real estate, but it can be dangerous.

Congrats for taking a the risk and jumping into the busy. I am a recent college grad, with some debt. Looking back, I do not regret getting my degree one bit. However, I do question the education system. I studied economics and business, however for what I do in the real world (Real estate, and Banking) less then 1% is applicable. My college education was also 50k a year, which is INSANE! Now I'm debating whether or not to get an MBA. I probably won't. I think I can get a self taught MBA through real estate.

But the parties were pretty awesome! I missed those days...

@Jamal L.

Like my girl Tay Tay always says

"the haters gonna hate, hate, hate, hate, hate
Baby, I'm just gonna shake, shake, shake, shake, shake
I shake it off, I shake it off"

Congrats on the deal!  Use the momentum to continue your growth.

On a lease I have for my 3 unit, the rent is due on the first and late on the 5th with a $25 dollar fee. For this triplex, my tenants typically wait until the 4th or 5th of the month. It is very annoying! What should I do? The tenants pay everything month and I haven't had any issues. However, when the 4th of the month comes and I still haven't recieved rent, I always get nervous. Any advice for that gap period or is this something like stop complaining you are collect rents....?

  When people do unethical or illegal activities, it's only a matter of time before they get caught. Maybe they get away with it once, maybe 2 or 3 times if they get lucky but eventually they will get caught. Then they will be sol. It's always better to play by the rules.