All Forum Posts by: Jeshua Patrick

Keisha Clegg if that is your name, please take your scam elsewhere. Adult conversation is going on. Thanks.

@Ryan E. what you are suggesting about waiting till it appreciates to $800k is the kind of logic that contributed to a lot of people’s losses in the last RE crash and, for that matter, many losing gamblers. They get ahead and then, at some point while they are ahead, their gut tells them to leave the table but they convince themselves to play just one more hand and they go bust. The OP clearly knows he should sell but he’s trying to convince himself that the market, and rents, will keep going up. He is so focused on the potential gains that he could lose by selling that he risks being blinded to the major win that is his if he will only pull the trigger and sell. He was hoping that we would reassure him that the refi and hold is the right approach when even he probably knows it’s not. If he pulls the trigger and sells and finds the right way to reinvest that profit he wins. If not, there is a good chance he could lose a good portion or, even worse, all his gains when the market corrects.

Isiah, I always try to slow down and consider my wife’s opinion on things as she may have insight I haven’t considered. That said, I think you both have valid reasons for the approach you want to take and if you sit down and talk through your positions and the why’s behind it with a willingness to compromise she may be willing to move in your direction also. I agree with your desire to move into the MFU space. I also think if you have the option to obtain a primary with low or no DTV it can offer a sense of security, so long as you secure that home in such a way as to insulate it from lawsuits such as a trust with the rentals in a different corporate entity(s). I would also look at what the houses you are considering buying sold for at the bottom of the market during the crash. The next bottom will likely be somewhat above that so, if you do decide to finance, you could limit the financed amount to that amount limiting the likelihood of finding yourself underwater and then also consider a 10, 15, or 20 year note for a faster payoff for her. There are so many different ways for both of you to get what you want especially if you each delay how quickly you get it just a little. You just have to be receptive to each other, open to compromise, and willing to be a little creative.

Ken Domond does this house have some sort of emotional attachment to you? It seems you are having a hard time letting go even though you may know you should. Let’s look at the basic facts. 1) As is, the house doesn’t cash flow well compared to value and will only be worse when you refinance. 2) SFH values fluctuate with the market and can drop at any time if the market goes cold or worse. 3) You have a limited window to capture permanent tax savings and lock in profit. 4) A 1031 exchange is not a tax savings but rather a tax deferment. 5) MFU’s give you far more control over value and much higher cash flow returns than SFH. Given the above facts I think the smart money lies in a sale but you’ll have to move quickly. Think about how long it would take you to save $300k simply based on the remaining cash flow of your property after you refinance. The numbers should be painfully clear. Let’s say you can clear $300/month. $300k/$300=83.33 years. Even if you could somehow net $1000/mo after expenses it would take you 25 years to save $300k and it’s even longer if you assume that your money is losing value at an average rate of 3.22% year-over-year due to inflation. $300k allows you a lot of options in MFU that actually generate 4-5 times the cash flow your property does and possibly 10x+. In addition, the right purchase allows you to force appreciation and rapidly accelerate your wealth growth through a sale and 1031X into a larger property if you do choose. A JV or syndication will open up far more options yet. I hope this helps make this more clear.

Nathan Rude I also agree with others about not financing the car but rather reselling it, unless you really need the car. I would not finance over 100% of the value. One other thing I forgot to mention earlier. If you are serious about buying a property that you will clearly need to finance then you MUST find your mortgage lender first. Run all potential purchases, refinances etc by them first before doing anything, especially once you go under contract. A quick flip like the opportunity you have on the car might not be bad but run it by them anyways. One last note. Do your due diligence on the car and make sure it’s not a too-good-to-be-true deals. We did just have two major hurricanes come through the southeast (Texas and Florida) and you wouldn’t want to find yourself stuck with a flood car because someone pulled a fast one on you.

Nathan Rude I did exactly this when I bought my first house. I was upfront with both lenders about what I wanted to do and they were ok with it because the loan was secured by collateral and I still met the DTI requirements. Noel Challenger you may want to do a little more research before making such a blanket statement regarding fraud. Your state may have strict requirements making it fraud there; however, it is perfectly acceptable and often times viewed more favorably than an unsecured loan for the very fact that the loan is secured by collateral. In order for it to be fraud he would have to take out the loan, use the cash to finance something else he otherwise wouldn’t have been able to and immediately default on the vehicle. A lot of people got in trouble for doing this with houses after the market crash. They would be underwater on their primary home, having bought it before the crash and buy a new primary home and then, after closing on the new house, default on the first property. It was fraud because they wouldn’t have qualified for the second note if they had defaulted prior to purchasing the new house AND the second home was purchased with the intent to default on the underwater property.

Devlin Mark take your spam, and probably scam, someplace else.

William Gainey PM me. My wife and I are considering doing some STR investing in your area.

Cara Bullock can you please update your profile with more about you as well as your company and maybe a picture? Also, my wife and I may be interested in doing some investing in STR’s in that area soon so if you could PM me with some more info on what your services are that would be great.

Ken Domond I would probably move to sell before the exclusion expires personally. You haven’t given us enough information about the property’s performance as a rental. We would need more detail specifically with regards to how much it cash flows now vs how much it would cash flow after refinance as well as refinance costs. I would imagine you can make far more leveraging the whole of that money into a MFU vs your current situation plus the additional control you have over appreciation in that market.