All Forum Posts by: Chris Babcock
Chris Babcock has started 2 posts and replied 61 times.
Post: Go to college for Entrepreneurship Sales & Marketing??

- Posts 63
- Votes 52
@Account Closed
Go to college, knowledge equity (equity in yourself) is something that can never be taken away from you and in my experience is the most valuable type of equity you can have.
Post: 19 year old landlord

- Posts 63
- Votes 52
@Account Closed
I would say no, I think it's actually a worse image to use your parent as a figure head. You're legal voting age, own it! You might have some people shy away but if you present yourself as mature and organized I don't think you'll have an issue. Or...hire a property manager.
Post: Should i lower my rent

- Posts 63
- Votes 52
Do some time value calculations.
How much is your time worth per hour? -> x
How many hours a month does she take of your time? -> a
How many hours a month do you think a different tenant would require of you/time spent filling the vacancy (annualized)? (guesstimate) -> b *Don't underestimate this! especially projecting wear and tear*
(x*a) - (x*b) = c =>$ you're willing to "spend" (reduce rent) per month to keep the tenant.
If the above number is negative then stop here and end her lease.
Now for the advanced math:
How much more per month could you get for rent for the unit in your market? -> y
c-y = potential extra income for taking the risk of placing a new tenant.
Personally, I think a great tenant is worth their weight in gold, even if it's $600 a year of my margin. But that's just me.
Was great to chat with everyone I talked to last time. Looking forward to this event!
Post: Taking advantage of the market crash

- Posts 63
- Votes 52
I keep warning people about assuming that the opposite of an up market is a crash. A downside market can look like minimal down or even stagnation. I personally see no reasons to assume that the RE market will be crashing anytime soon.
As the previous posters have said, just keep chugging along with a nice cash cushion.
Post: 15 unit student- housing apartment building

- Posts 63
- Votes 52
Have you run the numbers at $2M? Does that number make sense if you're considering unconventional financing?
A quick sniff test at $500/room for a multi-bedroom apartment, $19k/month, (which is an odd way to consider rental income IMO) doesn't pass 1% if you were to get it at $2M with conventional financing much less hard money rates. Up in my neck of the woods I see bad deals at a little over 1% so I don't know if this makes sense based on the information you provided.
Also, what are taxes like on it? If it's only a decade old and is a 15 plex I imagine the taxes are a gut punch.
Post: Opportunity Zones benefits explanation

- Posts 63
- Votes 52
Originally posted by @Brian Stecklein:
Hello I came to see about how to get investors into opportunity zones. With another project I am working on I have developed a very good relationship with the city to get land from them for basically free. The people I am working with do not want to get involved in the area that is in the opportunity zones. I also have a builder. There are about 140 lots in a relatively small area, with about 50 of those in the zone. I am wondering how you would go about getting the $ without them cutting you out of the picture, it is city land bank anyone can get the land though a application.
I would recommend starting a new thread as not to hijack this one because it sounds more like you are wondering how to stay involved or be paid for your knowledge of 'free' lots, not actually anything to do with OZs.
Post: Opportunity Zones benefits explanation

- Posts 63
- Votes 52
You (and your funds) also need to be a LLC or Partnership to qualify.
Post: What is the monetary threshold to happiness?

- Posts 63
- Votes 52
I don't think there's a universal dollar amount because everyone is different. If you are happy spending $100 a week on the necessities, that price point is going to be a lot less than if you require $500 a week for the same level of happiness.
I think what you really need to understand to answer the question for yourself is:
A. how much do you spend on average to maintain your current lifestyle?
B. Does your current lifestyle make you happy?
C. If yes, how much can you cut from your current lifestyle and still be happy?
D. How much is left now (+ or -) from your current spending habits and how much does that project to an annual income?
Good book I recommend is "Your money or your life" one of the best personal finance books I've ever read. It will help you understand your personal income needs to a T.
Post: BP Glens Falls, NY Area Event

- Posts 63
- Votes 52
Thanks for setting this up. Always hard to find time to work these into the schedule. Looking forward to meeting everyone.