All Forum Posts by: Doug Lovett

Is anybody here investing in Hinesville, GA?

I am working with a handful of investors to build a portfolio of single family rentals inside an LLC. We would like to use loans to increase our purchasing power but I don't want to personally guarantee the debt since it is for the company and not for me. Are there lenders that can do long-term financing like this?

Dave’s advice is great for getting started (spending, getting out of debt, starting to invest). Where his advice is downright dangerous is when he says you can withdraw 8% of your account value in retirement.

I’m a CFA charterholder and was in the investment business for 15 years before switching to real estate full time. The highest safe withdrawal rate is 4, maybe 5% per year. I ran the numbers and following an 8% withdrawal rate results in bankruptcy in retirement roughly 75% per of the time.

I’ve read several comments that basically say who cares if his numbers are wrong? It makes a HUGE difference when you project those wrong numbers out for a lot of years. Also planning on withdrawing basically twice what you should, based on a an over-inflated account balance will result in a DRAMATICALLY lower income in retirement than what was planned for.

He hasn’t been around long enough to begin to see the impact of this horrible advice. Also, since he refers people to use financial advisors they should protect their clients from this risk. However, those that go it alone and plan on withdrawing 8% of their account value every year are subjecting themselves to a massive risk of running out of money in retirement, which is not pretty.

@Matthew R. any update on your experience with Adwords nerds?

In my opinion, you don't need to know how to fix houses in order to flip them.  You need to have a basic understanding of construction but you don't need to be able to do it yourself unless your goal is to do that as a living.  There are people that buy, do the work on and flip 3-5 houses per year and make a good living.  If that is your goal, learn the construction trades - if not, it's not that important.  There is a good book at Home Depot for $35 that will give you tons of information.

As someone starting out, its more important to learn how to find deals and analyze deals.

If you haven't gotten them already, J. Scott's two BiggerPockets books on flipping houses and estimating rehab costs are the perfect way to start (BTW, he can't do any construction from what I recall).

@Matt B. interested in your results with this product. Have you been running Facebook ads?Y

@Montrell Brown

I lined up financing for this deal but would like to know your terms for future deals. What are your terms for:

Rate

Points

LTV

Draw fees

Other fees

Time to close

@Reginald Truss

I lined up financing for this deal but would like to know your terms for future deals.  What are your terms for:

Rate

Points

LTV

% purchase financed

% construction financed

Draw fees

Other fees

Time to close

@Ross Mcghie do you know if they will finance properties in Jacksonville?

I've got a flip that I need funding for in Jacksonville, FL. ARV is $130-135k, purchase is $65k, rehab is $30k.