All Forum Posts by: John Clark

Building appraises before repair at $2.15 million. After almost  $80,000 in repairs, it will value out at $2.25 million. A 5 year loan at 9 percent interest will cost you $97,000. Even without a loan, your value is going up only a bit over dollar-for-dollar, so there's essentially no return on your money if you make repairs.

So do a Starker exchange into a property that won't need repairs and when the dust settles, leverage that for capital for your new business. This one, however, is not worth repairing unless you have some secret that will make the appreciation all worth while.

Quote from @Benjamin Pifher:

 I've had these rates for almost 10 years, and every card I've gotten except one has been at 4% and stayed there.  I'm not sure how I accomplished this, but I do have excellent credit.

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I too have excellent credit, but my rates for my cards start at six percent and go up to nine percent (no teasers). If you have four percent without teasers, my hat is off to you. You ask about your huge incentive: Your original post stated that you wanted to reduce your debt-to-income ratio so that you could "more easily finance another house in the near future," so that's your incentive. You stated that debt was a hindrance to your plans. Solution; get rid of the debt, get rid of the hindrance.

Quote from @Benjamin Pifher:

The debt is all credit card, and I don't pay more than 4% interest on any of them.
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I question the accuracy  --and to a point, the relevancy-- of this statement. Sounds to me like you are in the "teaser rate" time period of credit card incentives, which go for a short while and then reset to a much higher rate. If that is true, then you have a maturity mis-match problem: Those teaser rates will reset before you accumulate meaningful reserves or get cash flow from a third property, et cetera. Start paying off those teaser rate credit cards FAST, before they reset. Look at which ones expire first and put your money towards those.

Which tells me that your current plan -- pay that debt down -- is the way to go.

Quote from @Benjamin Pifher:

This is my first post, so sorry if it lacks form.
I'm a new real estate investor that just moved into my second property with 2 tenants.  I rented out my first one with some cash flow, but my second one I do have to pay a small amount out of pocket to live in.  I do take home about $350 per month between both properties so I have some, but not much income from them.
I still have some debt (about $9K) that I need to get rid of and I'm wondering if I should pull any money out of my business accounts to do so or should I let them grow?

Not enough information. What is the nature of the debt and its terms and interest rate? What is your return on the money you have in the properties (What does the $350/mo. represent as interest on your investment?)?

Is the $9K in debt preventing you from expanding your real estate portfolio as a financial matter? Or is it doing so in some other way (e.g., wife doesn't like it so she wants to pay off debt before you expand, etc.)?

What are your reserves or available funds for emergencies, etc.?

Quote from @Jay Garrison:

I asked when the workmen came out and they told me no, but maybe if you ask in advance? 

No. Sub-meters are not allowed. You have one meter per intake service pipe. That way the City doesn't get involved with allocation disputes, etc. One service line, one meter, one bill. 

"They can’t get a FPC because there is no meter. "
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This makes no sense. It's actually easier to get a full payment certificate when unmetered accounts are involved because there's no meter to read. You simply take the current six-month charge and use that. Prior unpaid amounts are added and presto -- your bill. Trade your check for a full payment certificate.

I always thought that ever corporate entity had to be able to be traced back to the owner. Even a post office box has a real owner's real address on file, even if it takes a few layers to get there.

Quote from @Gulliver R.:

Hi All,

I'm planning on switching from a California-based LLC to a Wyoming-based LLC for my California rental property. Let me explain..

Currently I own a property in California which is owned by a California-based LLC. So my plan is to create a Wyoming-based LLC because there's no state tax there and the fees are lower. Then I want to have that Wyoming LLC be the LLC that holds title to my California property. So my question is: can I do that? And is there anything you think I should know about this before I pull the trigger on it? Thank you in advance for the advice! :)

Best,

Gulliver

 I’m not familiar with California law, but most states require that out of state corporate entities register to do business in their state, so it’s not like you can hide your activity. As others have said, states can tax their own land and the revenues derived from that land. You can’t siphon it off somewhere else and avoid the taxes. 

The drivel is the “87,000 armed.” Disproved eight ways to Sunday at the very beginning. 

Quote from @Bruce Woodruff:

sending in 87,000 armed agents will help how?

 We’re supposed to take such previously disproven drivel seriously?

Like it or not, better enforcement of the law is only fair. Don’t like it? Vote, and have our representatives change the laws.

Semper Fi, Mac