All Forum Posts by: Jeff C.

The profit resulting from reselling a property you purchased for resale is not a capital gain and even if it was, short term capital gains are taxed at the rate of ordinary income anyhow.

 If you think that's bad, most of us professional investors have (sometimes long) time periods where the "drill is spinning" constantly, yet we still aren't getting paid!

One of the few indefensible luxuries I've allowed myself is a McLaren that mostly sits in the garage. It always feels a bit like I'm driving someone else's car when I take it out, but man I do love that thing. I remember having posters of Testarossas and Countaches on my wall in grade school. There's something to be said for laying a dream that you've had for decades to rest.

I haven't bought in DFW, but if someone could provide me with a steady stream of properties there at 75-80% of ARV minus repairs I'd be on the plane next week to go set up shop. Average turn time is about 5 months end to end. No hard money employed.

@Amir Khan

Nearly every deal I do violates that formula. If I had attempted to adhere to the 70% "rule" over the years I would have done a hundred fewer deals and missed out on seven figures in net profit.

That said, I still never really buy anything from wholesalers, as I find they're usually coming in at more like 90% when I used REAL ARV and rehab numbers and not their nonsensical projections.

Imagine everything you might ever want a city.

Then imagine a city with zero of those things.

Congratulations, you now understand Taft.

High crime rate (roughly double the national average), a per capita income far below the national average, little job growth, poorly ranked schools, aging housing stock that has far more than the usual percentage of derelict properties (no reason to build new housing with no population growth), a largely uneducated populous, and zero entertainment (other than committing crimes or watching others commit crimes, apparently), and it's marooned by itself in the middle of nowhere with no other cities reasonably close that could provide any either. But, at least you can enjoy the 110 degree summers and views like this all around:

I'm considering picking up a property in Miami and outfitting it as a short term rental. In order to know if this is going to pencil financially I need to know what the management is going to cost me. Any STR managers here? Contact me and let me know your program / rates. Thank you!

Except that this foreclosure of the first would necessitate a public sale at which the bidding for a $500k house needing virtually no repairs would go much higher than $300k. A first lienholder can't simply surreptitiously foreclose and take a property back in order to prevent junior lienholders from having a chance recoup their equity. I would bet my big toe that this is a concocted tale designed to wow the listener with the creativity of the teller.

@Account Closed The more you tell me the more nonsensical it sounds. 

@Account Closed Sounds like a nice tale to me. Paying off the first mortgage and recording a brand new one to a new entity would put what WAS the second into first position. The new $300k lien would be the second.