All Forum Posts by: Shawn Coverdell

with BRRRRR method returns are sometimes difficult to calculate. If you have none of your money in the deal and it cash flows XXXX. What is the percentage of return? Have lots of those.

I don't, but my tenants do. :)   

No, the banks do not have anything to do with your score as far as that is concerned. That portion of the equation that you are referring to only calculators your "utilization", both over all and per card. 

This is why credit cards are so huge for credit scores. I guess the banks figure (and wisely I think) that you can tell a lot about someone buy there card balances. 

All it knows as far as balances are concerned on cards is that if you have a 10K card and it reports a 500.00 balance on the "reporting date" then you are at 5% on that card. 

If you have a total of 50K in card limits, it does a second calculation for over all utilization. that same 500.00 is 1% for that calculation. 

then of course age of accounts, mortgages, etc. come into play

Now lets be real. and I talked vise president of my bank about this one. You can have a great score, but if you have an active account with Aron's or another known renter of furniture and big screens. You will loose "points" with the underwriter. Some bankers such as mine. especially commercial lenders will frown on car loans. These are items that may boost your score some, but are red flags for financial character (potentially). 

Why are you buying a new car and eating all that depreciation (anti-investment), why are you renting your TV, in fact why do you even own a TV period! 

keep in mind your bank statements will be seen as well. Did you slide your debit card at the "Sweet Green Relief".

buying Starbucks daily? any of these little things can turn them off.

your banker is probably my age or older and he will not like you. I know many people who have great scores but I would not loan them a 20.00 bill.

Homes in the Hood

CASH FLOW will set you free! When you start I believe that is the target for sure. But then what? That's where I am at now. Cash flow is running like the Columbia River. I have based my whole model on obtaining more of it. But at this point, I don't see the need for more, unless of course I buy more boxes with windows and doors. 

Wife and I am wondering where to go from here. Double up on more cash flow?!?  Should I buy a Porsche and write off the 500 dollar oil changes?  It's kind of funny, but seriously, we are wondering where to take this obsession with buying houses. 

One idea is to buy properties that cash flow very little. say 200 bucks or less. I noticed lots of people on here find that normal cash flow anyways for there area. for us it sucks. but I would not mind at all if we bought a beach home along the Oregon coast. with a tenant that bathed regularly and lets the dog outside to do it's business when needed. That would be kind of cool. 

Maybe there is not answer to this question but would love to hear more suggestions or obtions. One is always to call it quits. Roll out a Dave Ramsey snow ball and pay them off. (seems like little gain for the money) but that is one option we are considering. 

maybe start buying homes for family members? 

Homes in the Hood

My money is on toilet is running. Minor adjustment to the toilet valve usually does it, or do what I do. A new tank rebuild kit is 20 bucks or so. I just yank the toilet. New toilet is 100 bucks or so. Here in Hood I put old toilet in alley with free sign. gone by morning. 

One mans junk is another mans upgraded throne. 

Homes in the Hood

Thank you! I too love the debt free idea, however I do also respect the fact that leveraging was the key to my build as well. But not just leverage, it's not that simple. It involves buying deals. swinging my own hammer to pound out that value. Making 100K houses out of 40K houses. POW! It's that one-two punch combo that allows you to give your boss your notice in just a few years. 

Sure, you can do things faster or even slower. Leverage AND buying super low. 

Look for tarps on roofs, when you open the door does your gag reflex kick in. Those are the good ones!!!

One other point I would add. I someone mentioned buying D property vs best you can afford. I am a huge fan of the ghetto units. No matter how bad the recession. our socialist minded government will always print more money do fund freeloaders. If we enter depression. Hud or some other program will pay the rents for those who just want to hang out and Vape weed and play video games. 

for those nice neighborhoods not so much. Those 500K homes are tomorrows 150K homes. 

Worst case scenario of course. Nice homes require jobs. 

Jim, that is awesome!, I love credit hacks. I would do that right now to load up more miles on my Chase Saphire card, however I don't like how that would affect my book keeping in quick books. The individual purchases one that HD gift card would not link to my QuickBooks so as to be broken out into various categories, only the HD card purchase would be postable, unless I did a very crazy split purchase posting breaking it all out. 

Wife would be smoking mad!

Thank you all for the good laugh. What a great exchange of wisdom!

I have no idea what is next for home values. I am no economist, but I cannot find anyone below the age of 45-65 range that can even complete simple tasks reliably without major drama and attempts to cheat me. Judging by that alone, I think we are looking at some sort of population uselessness bubble. I mean how can this be good? I hear it constantly from my friends as well. It's very difficult to find help that will be worth even minimal wages!!!

You are not alone, there are a lot of spooky things out there. a lot of this value run up is probably due to pure inflation and Fed Reserve Quanative Easing (pumping more cash into circulation)

I don't know, but something don't feel right. 

I have 3 offers out right now and will continue forward with caution. I will say this is the longest period I have gone in a buy cycle without closing. I have pretty high equity cushions in each property, so I can absorb a pretty good value drop, but even if my properties did go underwater, One hidden benefit of using this BRRRRR strategy is that each property is top notch and desirable. So I think I will still attract tenants. Can lower rents quit a bit even to keep them full.

Pantry is stocked. Cows have hay, chickens are fed. Lets do this drop thing!!!!

Homes in the Hood