All Forum Posts by: Jerome K.

I don't see a benefit to running cat5 to each room.  Most people are going to use and prefer a wireless setup.  

I second the vote for Quickbooks.  Once set up properly, it makes book keeping, financial analysis, and planning incredibly easier.

@Andrew DeWeerd

I'd be careful about taking a personal mortgage, and then transferring the title to an LLC. In most situations, this may trigger the "due on sales" clause, and the lender may call the note due.

And if you take a mortgage out personally, and keep it titled personally, I'd definitely seek the advise of a good CPA to map this out properly.

Some options to consider: Local credit unions have options to lend for investment properties to LLC (title in LLC), and they are usually slightly higher interest rates. Also, paying all cash eliminates a lot of those title restrictions (not always the best way to purchase though).

This might be an over simplification, but I think Bitcoins are this age's "Tulips":

https://www.investopedia.com/features/crashes/crashes2.asp

Me personally, I would take the slightly higher interest rate, with $0 origination (all else being equal).  That's $3800 that could be used toward the down payment of the next deal.  And the return rate to "pay down" the interest is very long.

I am in Orlando, but started to look in the Ocala/Gainesville area for new opportunities.  There seems to be more viable options there than in Orlando metro.

While these posts may be repetitive, it does not make them any less accurate.  I think it's important to share these stories along with the successful "wholesaler" stories out there.  People should be aware of both sides of the business (success and conflict) before jumping into certain activities.  I can certainly understand the appeal that wholesaling has on people, and thus the strong emotional support that it brings.  Nonetheless, it still makes the activity in Florida illegal.  

I agree with the notion of paying off highest interest cards first (and fast).  Having them at a $0 balance does not adversely affect your credit score.  Consequentially, leaving balances on multiple cards can adversely affect your credit and ability to obtain new loans (debt to income ratio)

I think @Don Konipol summed it up nicely.  Truth is, a lot of people could benefit from some basic (or maybe more advanced) lessons in finance and accounting.  A lot of these "coaching" programs manipulate numbers and present them in inaccurate ways to force an emotional response.  Using terms like "front loading interest" is completely inaccurate.  If that was true, your entire early payments would be interest-only.  If you look at an amortization schedule for any loan, and analyze any payment, you will see the interest paid on that payment is only the interest due on the balance of the loan at that moment.  I.E., take a $200,000 loan, at 5%, on a 30 year schedule.  Your monthly payment is $1073.64.  Your very first payment has the principal paid-down at 240.31, and the interest of $833.33.  

The monthly interest on a $200,000 loan at 5% is $833.33:

$200,000 * (.05/12 months) = $833.33. 

Clearly, no manipulation of "Front loading interest"

As far as the "innovative Strategy", this topic has been commented on extensively.  Check this thread:

https://www.biggerpockets.com/forums/49/topics/329...

The only proponents are ones that "feel" or "think" this should work.  And the opponents clearly showed math that showed that it doesn't or the effects are marginal (and not really the result of the strategy, but of other factors).  Bottom line, you are shifting debt from  one loan that is fixed and low interest, to another that is variable and higher interest.  Bad debt management if you ask me.

HIPAA in this context is for patient medical records, and protected health information.  As mentioned, not needed for real estate industry.