All Forum Posts by: Christopher Robert Noland

I charge $99 on Instagram to teach people about investing and long distance investing with little to no money down. I essentially go over the entire process and teach about asset classes and risks with certain strategies but I never promise people they will get rich fast or that it will be easy.

Maybe I would be making more money off it if I did but I prefer to be upfront, it’s not easy.

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Philadelphia, Pennsylvania

It’s priced too high.

Go onto Redfin and analyze the data as to who is moving there and advertise in those areas also for tenants who might be moving to that area.

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Fayetteville, Arkansas

How much is the rent in the area for the same place? Who is moving there ? Who is willing to pay it is gonna be your and we because Connecticut isn’t in great shape and there’s a lot of people moving out instead of in. The act of raising the rent can make some tenants move out of principle and if you don’t have a large tenant pool, you’ll just lose money.

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Chicago, Illinois

Quote from @Stuart Udis:

I continue to see more and more posts suggesting real estate investors should go from buying 2-4 unit buildings to buying larger apartment complexes. I believe these posts are influenced by the pay for education syndication model. Here’s how it works: You’re told you can accelerate your growth and get into larger syndications. These syndication educators teach you underwriting, give you lists of brokers, recommend you increase your social media visibility and are provided techniques and tools to raise capital. You’re also given permission to list your educators as "Partners" or “Strategic Advisors” to boost your credibility given you have no track record.

You take all of these steps and then set out on the mission of raising capital. Easy right? Not so fast. You realize it’s not easy to raise capital for larger syndications in small amounts. Your friends and family know you on a personal level and question your capabilities. They’re out. You then realize raising capital from individuals you don’t know is equally as challenging because you don’t have a track record. They're out as well. Where do you go from here after spending all of this money on education and time setting up your syndication business? You take the lists of brokers you were given, the underwriting skills and capital raising techniques you were taught and you begin raising capital and finding deals for the the syndication educator who started you down this path in the first place.

Now you may ask why you would do this? They offer you Co-GP status of course! Yep, raise some money for them, find them a deal, lend them money to fund a deposit or conduct their diligence…you contributed to the deal and in return they will give you a CO-GP title. Now you are instructed you can put "GP" or "Owner" of 50, 100, 500 etc. units in your social media or your website and just like that you have yourself a track record. Let's just ignore the fact you are knowingly misleading those you want to stumble across your your more polished syndication resume, but who cares? Next time you try your hand at raising capital you may fool some of the people who first balked at your credentials.

To recap, you pay to learn the necessary skills to source deals and capital for your educators and you are actually taught to deceive investors by embellishing your track record and credentials by dangling your GP status in ways not representative of your true role. I believe most who sign up for these programs are too naive to know what's happening but if you are someone who does and still believe this is the best path forward I question whether you possess the moral compass or responsibility to care for someone else's hard earned money. That's the roadmap and its spreading like wildfire. Anyone else noticing?

2-4 units way easier to finance. So yes it’s to sel a course as usual.

1 Vote

Special features are what set Airbnb apart. Analyze the cost vs new profit and see if it is worth doing. But usually Airbnb with some specialty will rent over one that doesn’t.

0 Votes

Manchester, New Hampshire

Quote from @Jesse Dominguez-Castelan:

Back in 2021,I found myself an opportunity in Indiana, where I lived, to purchase a house. It ended up being a seller financed deal. As it was my first opportunity to get some skin in the game, I jumped on the deal and we agreed on a 5 year ballon (4% rate, amortized at 15 yrs). I lived in the house with my siblings (who pay me enough rent to cover the mortgage) for 3 years, until 3 months ago when I moved to Phoenix. I have about 20 months left until I have to get my own financing, but now I am stuck on what I should do. My siblings still live there, the house definitely needs some fixes, and now I'm out of cash. My original plan was to hold it long-term as a rental. I genuinely don't know what my next steps are, so I am looking for some guidance. Any help is appreciated!

It sounds like you're in a pivotal moment with a lot of moving parts—seller financing coming due, repairs needed, siblings renting from you, and a move to a new state. Here are a few steps you can consider to help make an informed decision:

### 1. **Refinancing vs. Selling**
- **Refinancing**: Since you have about 20 months left before the balloon payment is due, it's essential to start considering your refinancing options now. With a 4% rate on the seller-financed deal, you'll want to compare current market rates to see if refinancing is affordable and makes sense. Begin reaching out to lenders to see if you can qualify for a conventional mortgage, especially considering your change in financial situation (living in Phoenix, out of cash).
- **Challenges**: If the home needs repairs, lenders may hesitate unless those issues are fixed. You might need to take out a repair loan (like an FHA 203(k) loan) as part of your refinancing if the home’s condition will affect its appraised value.

- **Selling**: If refinancing isn’t feasible due to cash flow or repair issues, selling the property could be an option. You’ll want to weigh the potential profits from selling versus the costs of selling and moving on. Consider:
- Can the property be sold as-is for a decent price in its current condition?
- How does the local market look for selling now vs. in 20 months?

### 2. **Evaluate the Condition of the House**
- With limited cash, repairs might feel overwhelming, but some issues can directly impact the home’s value or ability to refinance. Prioritize repairs that protect the house’s value, like roof issues, plumbing, or structural concerns.
- Consider low-cost cosmetic upgrades that could improve rentability or sale value. Even though you’re out of cash, you might be able to finance some repairs or negotiate with contractors for a payment plan.

### 3. **Rental Income and Management**
- Since your siblings pay rent that covers the mortgage, you have a buffer as long as they continue living there. However, you need to consider:
- **Future rent increases**: Can you adjust the rent to help cover potential repairs or property management costs if you’re managing from afar?
- **Property management**: If you plan to hold the property long-term, it may be worth hiring a property manager to handle maintenance, rent collection, and tenant issues, especially since you’re out of state.

### 4. **Long-Term Plan**
- If your original plan was to hold it as a rental, ask yourself if that still makes sense given your cash flow, repair needs, and financing options. You might still be able to hold it long-term if you can refinance and get through the repairs.
- If not, selling may help you free up cash to reinvest in something else (either in Phoenix or elsewhere).

### Next Steps
- **Consult a mortgage broker**: They can help you figure out if refinancing is an option and whether there are any programs that can accommodate your situation.
- **Get repair estimates**: Even if you don’t have cash now, it’s good to know what you're looking at cost-wise for critical fixes. If you can address the most important issues, it may open up refinancing options.
- **Evaluate the rental market**: Look at what similar homes in Indiana are renting for. If your siblings move out, could you continue renting it out to cover the new mortgage?

Your decision comes down to how long you want to hold onto the property and whether you can secure financing to make that happen. Balancing the need for repairs with your cash flow will be key.

2 Votes

Do not buy these things that break for rentals. Keep it simply. Use ice trays.

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Quote from @Melanie Baldridge:

If you think about your career and your journey to build wealth over a long time horizon, this is still the strategy that I like most:

1. Start a business that produces cashflow.

2. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits.

3. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio.

4. Occasionally sell and 1031 into more attractive assets.

5. WAIT as long as you can and don't die.

This is easier said than done but it's a proven model to create wealth in your life that has worked for many people over time.

I just borrow the down payment as a loan or equity in the property. Easier.

1 Vote

The taxable gain on the sale of your single-family home (SFH) will generally be the **difference between the selling price and your adjusted basis in the property**. Here's a breakdown:

1. **Adjusted Basis**: This is the original purchase price of the home, plus the cost of any improvements you made over the years, minus any depreciation you claimed while renting the property.

2. **Taxable Gain**: The taxable gain is calculated by subtracting the adjusted basis from the selling price. Essentially, it's the difference between what you paid (adjusted for improvements and depreciation) and what you sell the property for.

3. **Depreciation Recapture**: Because you've rented the property, you likely claimed depreciation, which reduces your basis. When you sell, this depreciation must be "recaptured" and is taxed at a higher rate, typically 25%.

So, the taxable amount is **the difference between the sale price and your adjusted basis**, including depreciation recapture.

If you're concerned about tax liability, a **1031 exchange** could allow you to defer capital gains taxes if you roll the proceeds into another like-kind property (such as a larger SFH or multifamily property). This is a good option if you're looking to reinvest and defer the tax hit.

1 Vote

Sell it. Work out the lender to extend until you do.

0 Votes

Houston, Texas

All Forum Posts by: Christopher Robert Noland

Christopher Robert Noland has started 2 posts and replied 74 times.

Post: Please stop listening to and paying Real Estate/Instagram Gurus!

Post: Difficulty finding a tenant

Post: How to raise under market rent for a 4 plex in Bridgeport?

Post: Education Syndication Model: The Road Map

Post: Should I turn my garage into game room in STR?

Post: How do I proceed?

Post: Ice Maker Maintenance/Replacement

Post: One of the best strategies is this

Post: Tax liability when selling investment property

Post: Forclosure or try to sell at a loss??