All Forum Posts by: Chris Stromdahl

@Atchut Neelam 

I was recently introduced to the concept of "land banking".

Pretty interesting, had not thought of owning land from that perspective before.

It came up in a discussion about monetizing parking lots.

Charles, 

Welcome! With your professional and prior RE experience BP will be the icing on the cake.

Great people, great information and a lot of fun to participate in.

Chris

I understand the concept, but how does it work?

fter I refinance, what am I cashing out?

In what form dAoes the cashout come?

• Cash in the form of a check?
• A line of credit at the bank that can be used in any way I decide?

What is the typical interest rate?

This has come up in convos relative to HELOCs. I understand the HELOCs and where that money comes from, this one is next.

Thanks, Chris

Assuming that I am working with a property management firm, what are you using as an annual repair estimate for budgeting/deal analysis purposes?

• % or gross rents?
• $1000 per year?

What is your basis for this method?

Thanks, Chris

I am starting to put together my processes for deal analysis.

I am using the REI spreadsheet that @Joshua Dorkin provided in the following post, but I think that I need a more to the point calculation to rule out properties that are not anywhere in ballpark.

http://www.biggerpockets.com/forums/88/topics/2551...

The following would be helpful:

• Suggestions on steps to take/information to collect, numbers or otherwise
• Quick calculations. Example, using the 2 or 1% rule and immediately discarding properties that are under 1%. Whatever tools you use in this same manner.

Thanks, Chris

@Pete T. 

How long do you plan to keep your primary residence?

• Long term, no intention on selling ever. Great price, property and location.

How soon do you plan to spend the money (ie- buy right away or for reserves/emergencies/opportunities)?

• Buy right away/ASAP. We have reserves/savings in a money market. This would be for downpayment/downpayments purposes specifically.

Have you considered a cash out refi? 

• No, I have not. Please elaborate. I have not quite wrapped my head around the refi/pull money out concept. I planned on reserarching/applying in the future but did not consider it for the primary residence. Definitely interested in learning more.

Do you have worries about debt on your primary residence?

• No. Debt service is covered.

Thanks, very helpful.

@Brant Richardson 

• I will be holding the properties in an LLC from the start.

@Bill Jacobsen 

• Your ratios put things into perspective.
• Once I settle on a bank to business with I will talk to them about using the HELOC.

Chris

Thanks @D'Mark Poole.

I see you are in Federal Way. Stay tuned because a couple of the BP community members are planning a meetup for mid September.

https://www.biggerpockets.com/forums/484/topics/14...

I am considering the use of a home equity line of credit in the future.

I do own a home, but am hesitant to take out an equity line of credit on it because it is our primary residence. 

• I do intend to leverage the equity in my investment properties, but I would like to try and keep my primary residence out of the investment business.

Is this a good idea or am I leaving a relatively low risk opportunity on the table?

What are the risks associated with home equity lines of credit?

I am in the process of researching the use of portfolio lending as a financing strategy.

• What are some questions I should ask or factors I should consider as I move forward?
  

Thanks, Chris