All Forum Posts by: Axel Meierhoefer

I live in CA and plan to stay. Most of what people say I agree with. My concern is retirement A lot of my friends have nothing left each month after paying the high prices for everything I thought I could get over the hump with investing but it takes a lot of time and a lot of cash flow to ever live and pay for a little cal house. Maybe I am doing something wrong but I am afraid I might be forced to move in a few years when I get to retirement age and won’t have the income to survive

@Chris Bodden Yes, same in my research. I also ran it by one of my real estate advisers and he reviewed the pro-forma's and said that everything meets their criteria, which gives me additional confidence. I am hoping someone on BP has done business with them and can tell us about it.

The purchase is only the starting point. I also really like to hear/read what the PM experience over time has been.

I have been researching turnkey SFR and landed at MIP in Memphis. All looks great so far but I also really love our Bigger Pockets community and getting some feedback an what you think or what your experience with MIP is.

Here is the link to the website for more info about what I am looking at.

https://www.mipinventory.com/listing-page?cf_uvid=...

Thanks for your help

Axel

@Alex Silang I am not claiming to be an expert but I think your best bet would be to look for a turnkey provider in a place conveniently close to you and see if they would be willing to give you a role in what they do - maybe doing something you are already good at, so they benefit, and in return you see and learn what they do.

I am suggesting this because in my line of work there are many many people with academic and theoretical knowledge but they often haven't ever really applied any of it. Rather than learning everything from scratch and making every mistake in the book, I invite them to learn from someone who applies everyday.

(Full disclosure, I am a leadership and upper management consultant helping organizations with their projects and preparing their up - and coming managers for leadership roles. In universities and libraries are thousands of "gurus" who write about the theory and when you check they never had to do any of the work and be responsible for the results.) I am sure that's not 1x1 transferable to real estate, but for the same reasons I work with turnkey providers rather than trying to do the work myself. I get the theory but I don't have the time to learn or to spend to do it myself. If I wanted to do what you plan on doing, I would learn from the ones that do well already. 

Even if you find Memphis invest to be expensive for investors, one thing is undeniable: They know their stuff and do an excellent job, albeit expensive. 

Alex Silang How much experience do you have in the work a turnkey provider does?

@ralf

I am not sure I understand why you want to pay the owner of an apartment or townhome money?

To not have to do the work on your house I suggest to get an affordable handyman. I do that for my CA properties at $30-40/hr.

One important thing most people have not mentioned:

You said you think we are at or near the peak. As others have said, nobody knows where it is. Let’s just assume we reach in 2020.

If valued increase as you said they have so far, you would leave 150000 on the table, instead allow the owner of the place you will rent to increase value of his place with your money. On top of that your goal would probably be to start investing near the bottom or at least after a significant downturn.

That will probably take some time to reach. 

Finally, keep in mind that every investor who has a cash flowing property in Memphis or other places will still have that after a downturn with no reason to sell. In my experience when a market crashes people avoid change because they are afraid about the future. So you can’t know how easy it will be to put a desk together even if you have a good TKP.

As you know you can get deals right now that Cashflow. I would get the HELOC, start investing, get a handyman to keep your house in good shape and keep smiling when you check Zillow at the end of each quarter. 😜

Mike, most people investing in investment properties like to combine like to combine leverage with portfolio- building. If you finance traditionally you have the majority of interest to pay first and, as you stated, can only accelerate that by paying extra. Even if you pay extra you still don’t get to the equity of the property that you have paid down, however minimal it may be in the first few years. With a HELOC you can get access or decide to delay the repayment. If you were to decide to accelerate for some time, i.e paying your positive cash flow as extra principle for some years, you still can’t get to that money or any appreciation in your house unless you refinance. With a HELOC, you have that flexibility all the time. Calling it a scam is inappropriate. You asked for lenders that offer it. If you don’t like it or deem it a scam, you can stay away from it. It’s an instrument that serves people with a specific payment and investment intention. If you rather have high closing costs and no access to equity, that’s totally your choice. In return you typically get slightly lower and fixed interest.

Originally posted by @Mike Dymski:

Originally posted by @Axel Meierhoefer:

I would contact Mike at Replaceyourmortgage.com
He has done the research and can tell you

Negative, there is no place for mortgage acceleration scams on BP.  And you don't need to research simple interest...it's simple.

 If you don’t want answers you should stop posting questions. There is no scam and I find it appalling that you want to deny math.

If you can show how you get access to equity in your simple interest universe where the lender requires you to spend the vast majority of your monthly payment on your amortized mortgage to cover interest, I would be happy to hear how.

Otherwise I suggest you stay away from the word scam - or maybe you read up on how houses in Australia and the UK are financed. I am sure those governments don’t support scams but they know math.

I would contact Mike at Replaceyourmortgage.com He has done the research and can tell you

@Josh Caldwell - I hear you but I can't chose where my daughter got here promotion. If it were just for me, I would definitely look in more affordable areas with better values and returns.

@Amanda Fallon Yes, that's what we are planning to do anyway, but the down payment pretty much all comes from me. The millennial these days really don't have any savings. We have the financing in place in the sense that a broker has already reviewed and agreed that both my daughter and I can receive funding. The main issue is the down payment.