All Forum Posts by: Glidden Rivera

@Stefan D.

I agree with the main consensus which is do nothing and rent it.

However, if by upgrading you can increase the rent substantially do it.

Additionally, better units attract better tenants and possibly less turnover, maybe more lease renewals.

Best to know your demographic and what they expect and or really want.

Finally, everything in the photos appears intact and functional- don’t fix it, if it’s not broke!

@Chris Seveney

Thank you for the insight.

@Chad Urbshott

Thanks for the input, that’s a good rule of thumb. I will definitely put that to the test.

I will keep in touch as I may need to pick your brain from time to time. I am in Orlando Fl.

@Roman M.

It is a lot of loans, but it is not unrealistic over the course of 10 years. Additionally, private money will naturally follow performing assets.

I am about to transact this strategy on a property I own, I will keep this forum updated if interested. It will be the first of many.

I intend to 10 more properties before the end of the year. So I will know first hand.

Here is my prediction.

100k in down payments received

And 3k passive cash flow.

I am interested to see how close or how far I get to those numbers.

@Tj Hines

Agreed, didn’t mean to step on your toes!

I tried to correct myself, next time I will issue a formal apology instead.

You need to do both. If it’s listed, find the average listing price for Like  kind and quality. Then do the same for sold property. You will learn two things, what it can be listed for and second what it sold for. Be conservative.

@Samir Shahani

Thanks Samir,

Forgive the length and the typos. Write it on my phone. Also I appreciate the dialogue!

In the scenario you describe maybe there is a chance everything can go sour quickly.

However, I have experienced the extreme opposite of what you are describing. All things being fair and equal invested early on in upstate NY. This market (Rochester to be exact) is the poster child of steady. Market prices don’t soar overnight and they also never plummet.

My tenant occupancy was always great, with an average turn over very 3-4 yrs.

I continue to invest there, because my income is predictable. Additionally, there know the area like the back of my hand. Naturally, I can spot a diamond in the rough from afar.

Even if I had to foreclose (worse case scenario)

I can repeat the owner finance process.

Collect another 10k deposit, sell for a potentially higher price, and cash flow again.

I’m not sure agree with your assessment about equity being the same and returns being equal.

My average acquisition cost me 10k out of my pocket, my average cash flow is 500.00/ month per property. That return is 60% per year assuming I do not raise rent or account for principal pay down and appreciation.

In 5 yrs of holding: 30k cash flow

10k principal pay down

About 10k to 15k appreciation

About 50k profit

Indexes historically grow at an average of 7-8%

Over long term, matter fact 5 years may not be long enough to hold an index as market volatility may experience extended cycles of depression. Indexes are best measures in periods longer than 10 years in which case the long term average is as mentioned above.

In the case of me owner financing a property,

The scenario will be this.

I acquire a property at wholesale (maybe 50k)

The value of the property might be 85k. I borrow 100% of the acquisition (I have done this as well) plus an extra 2k to cover upcoming mortgage fees ( 52k) my interest is 5.5%

I sell the home for 99k with owner financing, and Collect 10k. Buyer has a mortgage with me for 89k and 9.9%

I make 4.4% on the first 52k and 9.9%on the remaining 37k

51k in interest

47k profit ( 37k +10k deposit)

Total profit ( passive at that) 98k

I could do ten deals like this in 5 months ( probably shorter if I really want to crank them out)

That’s a million dollars of future revenue in Less than half a year. What if I do this for ten years and buy 20 houses a year. That is 200 houses

And 20 million created and 2 million to acquire

That same 10k in indexes might be worth 50k if your lucky!

@Steven Beckham

That is high, and I can beat that easily.

No upfront fees ever. I am an investor as well.

Message me if interested

@Kerry Baird

Honestly, anything you buy with the HELOC should be temporary. That said, I generally don't care about interest. I care more about buying power. The low interest rate likely will be accompanied by a lower line of credit. Go for the higher buying power if it's an option.

@Corey C.

Best and most efficient way to check value is competitive sales in the area.