All Forum Posts by: Josh C.

No slow down here in our office. Things still selling well and clients buying too. If you already had a price in mind pre- Coronavirus list it at that. I might wait til tenants are gone and you did a clean up though. Most people won’t want to buy a place that is almost vacant if they are going to keep it as a rental.

@Allison Winston

Welcome! Since you are from Indy you know the area, but depending on what you mean by Northwest, but some of the roughest neighborhoods are in the northwest. Good luck and happy investing.

@Victor S.

Thank you sir. Very much. My head was starting to hurt.

It’s like “if you use VB you have to make all these extra payments on your heloc and it goes so quick! VS just make minimum payments. See VB banking works!” Completing ignoring the tens of thousands of additional actually dollars from your wallet to your heloc over this 5 years.

This is like Gatorade saying “drinking Gatorade and five years of hard training beats drinking water and sitting on the couch every time!”

I just thought of “super duper light speed banking banking house hack system” just now. As soon as you buy your house sell everything else you own and write a check and pay off the mortgage of the first day. Boom! No mortgage payments ever! I need a book deal.

@David Dachtera

When you responded to my post you quoted it so I assume you read it. I said obviously paying your mortgage faster reduces interest, which no one is debating, but this fact has nothing to do with VB.

What calculator are using where practicing VB and paying your 200k 5% mortgage off in 5 years saves you 135k vs just paying extra directly on your mortgage and totally paying off in 5 years. Or 7 years or whatever number you used in your 135k saving example. That’s just not true. Where did you get those numbers?

Also, Helocs are about 6% interest rate and primary mortgages are about 3.5% interest rate. Curious to see the math.

@NIcholas Hamel

No. Nothing about VB will make any significant difference. Now paying your mortgage off faster will dramatically decrease total interest paid. But this was invented to sound cool. Dave Ramsey has been preaching early payoff for 30 years and his students average paying off their mortgages in 7 years.

@NIcholas Hamel

As @Wayne Brooks said. Paying more than minimums. There is only one way to pay off your mortgage or any debt. And it’s to pay the bank the amount they are owed. The faster you do this the faster the debt is gone. No magic about that. If you actually do the math on those you tubers they are paying a lot of extra on the heloc which then they use to pay off the mortgage. What’s the difference between that and just paying all the extra on mortgage?

It’s not a secret to you pay more money it goes faster.

@Scott Bieri

Lots of lenders will do cash out refinancing. Helps of rented already. Smaller banks and credit units are best. Good luck.

@Ryan Proffit No. Appraisals are done all the time at stabilizes value. Vacant units (even trashed units) aren’t worth nothing. Right? It’s there, just needs paint and a leasing agent. Investors and appraisers alike see value in units rented or not. Just like if a building is 100% occupied you still run it at 92% occupied. Current numbers certainly play apart in value, but don’t 100% dictate it. Vacant don’t mean free.

It'd be a wonderful world if it sold for current NOI and cap rate. Then you just lease it up and make a ton of money, but in reality that is very unlikely. People usually aren't total morons. I once bought a 0% occupancy building and unfortunately it cost more then $0. A car that needs a new battery is worth more than a car with no engine yet they both don't run.

Offer what you think it’s worth. Could you get it leased up to 85%? What’s a healthy cap rate there? Maybe 8% to 9%? Offer based on conservative numbers and decently high cap and you’ll be protected and make some money. Offer like there are only half as many units as there actually are and you’ll end up with what you have. Nothing.

That’s CA. Our property management company here in Indianapolis has had plenty of issues with break ups and move outs etc over the years. So we reached out to our State housing authority and here anyway you can have different income requirements for married and unmarried people. Makes sense too and protects the investor. I’ll concede people more likely to marry than costal regions so they have played a part in the laws. Very different state laws through the country. Can’t make blanket statements. I think in Maryland you get fined like 100k for even talking with tenants about their day. 😂