All Forum Posts by: Henry Clark

OP looking at your prior posts you are an experienced note investor.  Could you present two scenarios of the above and then compare the two noting which is better for you personally and why?  

Your bio says CA.  Can you compare possession of the asset CA versus say OH?  

Would also like to know general returns between the two given comparable risk levels.   Recognizing non performing is more risky to begin with.  

Thanks

OP.  Couple angles.  

Short versus long term line or loan.

Asset base.   The rental units or stocks/binds/cds/mm

Simply talk with your banker or lending institution.

1.  Only use assets that match your line or loan time frame.  Example stocks you plan to sale in the next 3 years might not be a good asset collateral for a 20 year term.

2.  To the degree you can transfer the management of financial investments under the bank, the more favorable treatment you will get.  For example if you have CDs or mm at one place.  If you can move them to this new lending entity.  They want control over disposition.  
3.  You might have a stock position at an investment firm, the lender will want disposition control over it.  Plus regular statements for value.

4.   If your talking about owning say 5 properties and want to use all of them for a line of credit.   Then talk with your lender about cross collateralization on those properties.  

If you do this.   Ask for 1% point less.   If their rate is 7% ask for 6%.   Since you’re giving them a liquid asset for collateral.

If a balloon term on the Longterm loan.  Say 3/5/7 years.   If they offer 5 years, ask for 7 year balloon period if that fits with your plans.  Again they are getting a more liquid, marketable investment as collateral.  

But again, it makes it harder for you to switch lenders or to liquidate those assets.  

Makes for a great team relationship with them though.  

Quote from @Alexandra Hughes Pailet:

@Henry Clark are you going to BPCON? Free BP hat on me if so! 

Thank you.  Next time.  Traveling to Croatia starting then.  BPCON versus Croatia?

Went to BPNO.  I liked all of the people I met but was real hard to find similar interests.  At the lunch times and the mingling areas.   You might put topic signs up for people to congregate to.  STR, finance, commercial, syndications, etc.  Or locations.  You might have a BP poster session tables.  So people can meet other posters.  Everyone have fun.  

Quote from @Jeremy Horton:

Quote from @Henry Clark:

Folks we do self storage.  We just got a review of 1 on google.   Google reviews have zero impact on our business.  We are full.   We have a mix of 50/50 great/bad reviews and we dont worry about it.  We have very few reviews.  

The person who did this review has not done business with us.   They said we have deceptive practices.   End of comment.  No value add to a discussion.  

Our system is very simple.   There can only be two practices that might be viewed in some form of stretched imagination as being deceptive.  1.   We are running a fall special on certain size units.  You get the special price for 6 months then it converts to the normal price.  2.  We run out of a smaller unit.  If they want a larger Unit we will discuss but don’t upscale or push.  

We have similar or worse reviews that we respond to.  Their unit has been locked when they go there.   We do autopay.  New customer.  30 times in 30’days the auto pay wouldn’t go thru.   They didn’t note that in there negative post.   Then her sister does another negative post.  And we haven’t done business with her.  

I have had limited but good dealings with Renee.  If I had an issue I would openly on this forum state the specifics of the issue.  

 There was a big thread awhile back made about a young girl - maybe 25 or so, going on a "date" with an older rich guy who "saw something special" in her - despite that fact that she had no money, no investing experience - just a "vision". She admitted the older guy "flirted" with her - they had lunch, just the two of them. 

Well this sounded like a date to a lot of people. And a lot of people mentioned that. Well Rene selectively banned a bunch of people who mentioned it sounded like a date. She accused members of being "sexist". 

She drove several people off the forums - one guy in particular had been here over 10 years. Thousands of posts, years of experience gone. Because of what? An accusatory mod. 

BP never did anything - she locked the thread. Then several more threads popped up by people she had threatened to permanently ban asking what her problem was. Threads locked and members banned. BP never did anything - no explanation, no nothing. 

Then she wanted to require me to provide an ID/Drivers License to have a profile. Does anyone else have to do that? Sounds like I'm being targeted by a mod. Am I going to provide my license to a mod who is targeting me? Hell no. 

I will likely get banned for this. Apparently disagreeing with a mod gets you banned on here. 

Thanks for detail and context.  I would just pick up a phone.

 I do find BP fairly tame compared to our local Facebook group which is no holds barred until their Google meter or whatever goes yellow then the moderator cranks down on posters.    

The only gripe I have with BP , I would think after so many posts I would get a free BP ball cap.  

If you get a chance please stop at a gas station and post a picture of a stick of Boudin.  That will make up for no ball cap.  

OP not a big deal.  Ask if it due to clay or rock base not percolating.  Could be due to little of a lot to have both a drilled well and a septic system.  Our county requires 200 feet separation.  Ask a local septic company for info.  I always like issues like this.   More negotiation room and less buyers.  

Folks we do self storage.  We just got a review of 1 on google.   Google reviews have zero impact on our business.  We are full.   We have a mix of 50/50 great/bad reviews and we dont worry about it.  We have very few reviews.  

The person who did this review has not done business with us.   They said we have deceptive practices.   End of comment.  No value add to a discussion.  

Our system is very simple.   There can only be two practices that might be viewed in some form of stretched imagination as being deceptive.  1.   We are running a fall special on certain size units.  You get the special price for 6 months then it converts to the normal price.  2.  We run out of a smaller unit.  If they want a larger Unit we will discuss but don’t upscale or push.  

We have similar or worse reviews that we respond to.  Their unit has been locked when they go there.   We do autopay.  New customer.  30 times in 30’days the auto pay wouldn’t go thru.   They didn’t note that in there negative post.   Then her sister does another negative post.  And we haven’t done business with her.  

I have had limited but good dealings with Renee.  If I had an issue I would openly on this forum state the specifics of the issue.  

Will be in Zagreb and then Trogir near Split in Croatia in 11/2 weeks. Anyone interested in talking REI give me a yell. Was wanting to go to Albania but my wife said Croatia. Might do a day trip to Montenegro.

Will compare beaches to Belize. 

OP late to the post. Long day in the sun today.  Thought I would read an enjoyable post, but it turned pretty heavy.  But I followed all the way through.

Was really enjoying repartee until it got to shorts, puts and calls.  Brought back horrific moments from college. Taking a semester which only covered one formula.  Black Scholes formula.  3 tests.  10 questions per for the whole semester.  A Finance class they had to bring a Physics professor to teach.  

On your original question of investing a million.  I had to ask myself what returns I would expect from Crypto versus some of our investments.

Crypto. Bitcoin.  $111,887 today.  2024. 65,635.  2023. 26,967.  Wrote on a napkin so I might be off with these numbers.  No paper in our house in Belize.  Had to search for a pen.  414% return.  2023 sept to 2025 sept comparisons.

We started Silver in 2024.

Today $47.43; 2023 sept $22.90.  207% return

Selfstorage- normal 25% down in 2023 of $1mm; or a $4mm deal.  Would expect a $2mm return, which we actually did $1.8mm on a $3.8mm deal in 2 years.  Actually we only had to put 10% down for SBA or $380k.  $1.8mm gain in $380k down.  200% return using 25% down.  Actual was 473% using the 10% down.

I'll stick with REI. We control. It's scalable. We understand. And it's OPM. We stay in a 40 mile radius and to many deals in small town Iowa. And we aren't in a great market for Self Storage.

Everything I know on Self storage I have posted in BP.  But I think it’s too much work for most investors.  What I love about Self Storage as a Controller/CFO it is pure Math.

Start small and Make Your Big Mistakes Early.  

Haven’t tried Crypto.  

Hope it rains.  Have 24,000 teak seedlings to plant at this farm.  Have about 5,000 planted.  $13mm in 25 years.  Diversify.  Plus get to write-off 6 to 8 trips to Belize every year.  Beats out Silver, self storage or country subdivision investments for fun. 

It’s your money.  You’re right even if you’re wrong.  

OP I agree and acknowledge the majority of the issues noted.  But don’t see the affordability issue from a “numbers” standpoint.

Interest at 6.5% isn’t bad.

I’ll use $250 per square foot.  On your $4xxk home that is a 1,600 square foot.  Need to include or not the lot cost.  1,600 sq ft is a lot of house to start with.

What are you calling a family?  2 parents and 2 babies or 2 teenagers?

Backing into your 60% wage hike, means around $85k??  One of the top millionaire jobs is teaching.  Which $85k should cover for just one spouse possibly with a second income.  So doable.

If you took your $25xk adjusted house cost. But used today’s $250k depending on local.  That’s 1,000 sqft.  A family of 4 can live in that.

We built a 1,200 sqft house for $70,000.  Granite countertop, tile floors, touch screen bathroom mirror, 9 nozzle fully body shower and I think the commode even sang to me.  My brother had built.   Does not include lot cost and hookups.  

The above comments were for a personal residence and not a rental unit.  Depending on the town and location.  Could be affordable or not.  

Could you put more info to the discussion?  Ages, locale, wages, savings, etc?    

OP cap rates are fairly meaningless.   Especially any sort of average for commercial.   Example Bowling lane versus Medical office.  What toe of Commercial RE are you interested in.  To narrow down the discussion.