All Forum Posts by: Axel Meierhoefer

@Logan Pettigrew I would suggest you take a look at the new investment option from Ridge Lending. I am working with them right now. They call it "all in One", but it is really (ion my words) a HELOC in first lien position for an investment property. You would get probably 70% of your $160K in that HELOC. The beauty is that you can accelerate the payoff for the property you just finished or you can use it as your own bank. (Naturally, I assume you only touch the money for further asset purchase or development).

I am not a lawyer or CPA, but if I look at your example and pretend you would be able to do the exact same deal again, you could buy #2 BRRR and pay the $50K cash from your property#1 HELOC. Then you renovate using the HELOC associated credit card and pay for the $45K of renovations. When you are done you own a property free and clear that is also $160K, just as property #1.

The beauty is that the cash flow you get from property #2 ($1350 - cost, so maybe $900) can flow into the HELOC of property #1 together with the cash flow form #1 and replenish that HELOC.

The numbers might not always work out this way exactly, but you could keep buying and renovating properties and never really having to finance again as long as you keep servicing the initial HELOC, which is getting easier and easier as you move forward - and its available for 30 years, so you would be set.

You could call this a form of "stacking" that Brendon always talks about in his webinars and podcasts "on steroids".

@Rhett Tullis Exactly. I agree

@Chris Hyde, @Rhett Tullis Thank you Chris and Rhett. I spoke to them today and it appears their approach is mainly as a facilitator of c-class deals. They said that they mainly aim to satisfy investors who want to get maximum returns. My aim is long term hold because my portfolio is for my retirement. They stated that they used to do traditional turnkey and now converted to this facilitative model. For me, I am afraid of the blame game when each entity, PM, maintenance, renovation, selling is in different hands

@Dan Constantine I am not sure that your question really relates to your intention to build a portfolio, as you seem to want. In my view that aspect is best answered by asking about financing options. You could look at the new "all in one" loan from Ridge lending, as I am, and you will probably see that your ability to get money out to buy your next property or finance it with another All in One is pretty amazing. Naturally, it all depends on your initial downpayment versus rental income and other factors, for which you should run the BP calculator but you can basically have your tenants pay you the downpayment for your next property and you can benefit from appreciation over time as well.

I agree that turnkey does not have the bigger leverage, but done with the right company, i.e. Memphis Invest, one of the most important aspects (in my view) will be solved: Getting a well-renovated property with long term tenants under great management.

Maybe you want to explore a little further or have a conversation about your options. Message me and let me know if you like to have a call.

I am getting close to the identification period of my 1031 exchange and am considering Table Investments in OKC. I only recently heard about them thru Get Rick Education by Keith Weinhold and wonder if anybody has experience with them. For me, it's not only a matter of the deal at the time of purchase but especially the property management, having a repair and renovation team, getting great tenants that want to stay long term.

I am grateful for anybody who can tell their story and experiences with Table Investments. Thanks

@Nathan Maier Well, I wish you good luck. I think it will be challenging to get the appreciation you seek. As you said, its all in the strategy. My approach is long term buy and hold as part of a legacy portfolio I can turn over to my daughter when I am ready to become worm food. Naturally you should follow the strategy best suited for you.

Since we are both in San Diego, maybe we can meet, have coffe or a meal and chat about our investment approaches, and if we run out of interesting topics on that, we tell each other the war and flight stories...

@Nathan Maier Forgot to mention, since this appears to be a little bit of an aviation thread that I am a retired Air Force aviator (GR- 1 and F-111)

Cool to read your history and how you made the transition to civilian life work. Congrats

@Nathan Maier Just curious, for BRRR out of state are you planning to develop a team as described in David Green's book or how would you want to pull that off? I also wonder why you would not want to do TK instead?

I think it is also important to ask why you want to take out a HELOC on your rental property? In case you want to buy a flip or another rental property, I would recommend to use Ridge Lending new HELOC and apply it directly to your intended purchase.

If you plan to consume the funds you pull out, I would recommend to ask yourself why you have the rental property and how consuming equity helps you achieve your goals.

If the stone itself is in decent shape I would get one of these really powerful powerwashers they now have and clean it. In some spots you might have to touch up the grout, but in most cases that looks better than paint and you probably have 20 years before you ever need to look at any repair again