All Forum Posts by: Chase Gochnauer

This is VERY location specific. My systems were $60k-$70k each for my home and office, but it ended up being reduced by 75% due to federal credits, state credits, and the tax deductibility of the systems. My $65k system ended up being maybe $16k. I did pay up front and will receive the savings as a reduction in my income tax liability.

When I had properties sitting vacant waiting on me to do something and I didn't have time to do it, whether that be finding a contractor or finding a tenant, is when I decided it was time.

I just put solar at my home and office. 1200 SF array at each location. it's working as planned so far, probably 4 year pay back. I'm not sure if I would do it if I had to put on the roof though. They said it'd add roughly $5k in cost to remove and reset panels if you ever roofed.

Hello guys,

I've been educating myself on different ways of structuring deals with private money. Is anyone aware of any courses/classes that are focused solely on structuring these types of deals? I think this may be a better way to jump start my education.

Is it damaged? If not , paint it. If it is, cover it. 

I disagree that paying off a primary residence is winning the game. My mortgage is 3.675% interest and is tax deductible, making it about 3%(or less) that I'm actually paying. Paying off my mortgage basically saves me 3% on my money. Perhaps if you were to the point in your life that you're hands off your investments and want to no longer work, then it makes sense. But if you're hands on with your rental properties, and actively trying to grow your rental portfolio, it makes no sense to pay off your primary residence.

I think I'd rather stockpile cash than pay down a mortgage over a 1-2 year period, at least then it's liquid and you can access it quickly when an opportunity presents itself.

Originally posted by @Patrick Philip:

Originally posted by @Jeff Greenberg:

@Patrick Philip when calculating an annual return you do not add the return of original capital.  Is that how you calculate stocks?  Really???

If I were to try to calculate stocks, I would just look at the market value of all the shares I currently own divided by how much it cost me to buy them. If the stock went up 20% in 2 years, then I made 10% ROI/year, plus add dividends to that.

Is that incorrect?

 That is correct. This sounds different than what you were saying earlier, though. 

Originally posted by @Patrick Philip:

Originally posted by @Chase Gochnauer:

$12 mil/30 years is not how loan amortization works. Google an amortization calculator and play around with it. My number is right.

It doesn't matter whether you're talking stocks, real estate, or a loan to your brother, if you have $3mil that is invested and at the end of the year you made $300k, your ROI is 10%.

 https://www.zillow.com/mortgage-calculator/amortiz...

Year 1, you're paying off $231k.

Year 30, you're paying off $615k.

But it averages out to $400k/year as it mathematically must given that $12,000,000/30 = $400k.

Am I wrong?

You're right, but nobody holds commercial loans for 30 years. More than likely you can't even get a 30 year fixed loan. So every 5-10 years you will be refinancing the loan and starting over. $400k is the average yes but I would not use that number in my ROI calculations

"1.1" that you're referring to, means a 10% ROI. Your value went up 10%. I've never seen anyone calculate it the way you are.

$12 mil/30 years is not how loan amortization works. Google an amortization calculator and play around with it. My number is right. It doesn't matter whether you're talking stocks, real estate, or a loan to your brother, if you have $3mil that is invested and at the end of the year you made $300k, your ROI is 10%.