All Forum Posts by: Guy Yoes

I buy first position notes from a company working with PMs and private owners in select geographical areas.

The notes are 5 yr interest only and interest rate can vary between 9-11%. There are higher return notes, but I feel they carry more risk. 

I bought a property out of state. Can/should I title it in my LLC? I have two properties in my home state under this LLC.

Thanks for any advice.

Be financially prudent and you won't have to worry about a downturn, crash or "correction". 

1. Don't spend money you don't have. Reduce all debts.

2. Save the money you do have. Invest in tangible assets.

3 Increase the equity in your properties. At least 50% so if you have to decrease rent, you still cash flow.

4. Hold C+ - B+ properties in safe areas. The rich will need a place to stay when they lose wealth.

5. Build a cash reserve. 3 months expenses if possible.

6. Prepare an exit strategy. For your business and your self (family).

Better to be the ant than the grasshopper.  

We may be interested in doing some HML in Tulsa. PM me with your information and expectations.

If a person does not plan to live in one place for ten years, renting may be a better option. You will gain little equity in the first ten years. The cost of buying and selling the house will eat that up quick. It may be different if you live in a market that is growing double digits a year ( NOT OKC). Historically most people bought a house and resided there for 30-40 years. The idea of paying off your mortgage was enticing and celebrated. The concept of a "starter"  home is a ruse to the middle class perpetrated by those who profit off of loans and closing deals. People are more mobile today and change jobs and locations frequently. I encourage young people to rent and prepare to buy later. As a landlord, it is great for my business.

Great question. Save up your $400.00 and put it in your safe. In 3 years it will be worth about $350.00 in today's money, In 5 years about $125.00.  In 2001, I bought a gold coin for $325.00 and a house for $43K. Today that gold coin is worth $1325.00 and the house is worth $127K. Both of those markets have gone up and down since then, but they have held their value in relation to inflation. IF I didn't have the $400 (which I do) , I could sell that $325.00 gold coin for $1200.00 in 15 minutes. 

This is not a new issue. This problem has been around since the dawn of time. Most people are spenders and a few are savers. It may be more extreme today than in the 1950"s ( due to people living through the Great Depression ).  

In addition, there are also some cultures that place a higher value on saving and money management than others. In America, we have become too used to cheap credit and the importance of status. I know I'm speaking to the choir on BP, but just think what a great position we will be in when the spenders can't make payments on their houses, cars, etc. The things we delayed buying today will be had tomorrow are bargain basement prices.

See you at the foreclosure auctions.  ;-}

I bought a property in a neighboring state. My questions are: 

Do I add the property to my current LLC (registered in my current state) or create a new one?

Do I need to pay taxes in my current state on profits from my out of state property? ( I know I will pay taxes out of state on the property).

In which state will I claim my costs (insurance, taxes, etc)?

Are there other considerations/concerns of which I am not aware?

Thank you in advance for your kind comments.

If you have an interest in Tulsa, I can suggest some area to consider. 

You might consider hard money lending. it is passive income and should net 10-12%. No renters to deal with or repairs to make on weekends when you could spend time with family. If you don't need the income now you can roll the profits over and grow the 100K . You lose some tax advantages but gain more quality time.

choice 1 buy SFH for 100K rent for $850 month = $10,200 minus $3000 in taxes /insurance /repairs = $7200.00*

choice 2 lend 100K at 10% interest only = $12,000 (no rent / insurance / repairs) -$3000 taxes = $9000

* values based on properties in my area.

Ok i found it.  thanks.