All Forum Posts by: Julien Jeannot

Julien Jeannot has started 6 posts and replied 750 times.

@Mose Gebremeskel

If all you need is cleaning, try out magic erasers.

3 Votes

Cincinnati, Ohio

Quote from @Darius Wade:

Quote from @Julien Jeannot:

@Darius Wade

A word of caution on waiting for rates to come down:

- Maybe they will, maybe they won't, timing is always uncertain

- We are in a short supply environment with quick fix. When the rates come down, buyers will flood the market and push price up. With pricing increasing, the downpayment increases accordingly.

Personally, I'm looking to 1031x part of my portfolio before the rates come down.

Thank you for the words of advice. In terms of acquiring properties regardless of the rates I will still look to make purchases. However, I was inquiring more about the second half of your statement. I would want to cash out refinance to 1031 exchange like you mentioned. However, with increased rates the only way to make it make since would be for me to liquidate and roll into a new property or wait it out until rates drop which is what others have suggested and what I will look to do.

Got it. That makes sense.

1 Vote

@Dawn MacMillan

Lots of opportunity in that space. We just placed a family member in a facility and while visiting their competition, we were appalled of the condition of most places. A well run facility is in demand and would charge quite a bit.

2 Votes

Flagstaff, Arizona

@Account Closed

In any market, here's what I keep in mind as I manage my portfolio's risk:

Diversification:

Diversify your real estate portfolio across different property types, locations, and markets. This can help spread risk and minimize the impact of a decline in any particular segment.

Market Research:

Stay informed about local and national real estate trends. Understand the factors influencing the market, such as job growth, economic indicators, and population trends. This information can guide your investment decisions.

Cash Flow Management:

Ensure your properties generate positive cash flow. Even in a declining market, properties with strong cash flow are more likely to weather the storm. Evaluate your rental income and operating expenses regularly. Be sure to raise rents when you can as to not fall behind and have profit taken out by rising cost.

Conservative Financing:

Avoid over-leveraging. In a declining market, property values may decrease, and if you are highly leveraged, it can lead to negative equity. Consider conservative financing options and maintain a healthy loan-to-value ratio.

Emergency Fund:

Maintain a financial cushion or emergency fund to cover unexpected expenses or periods of low rental income. This can help you meet mortgage obligations and property maintenance costs during challenging times.

Property Improvements:

Keep your properties well-maintained and consider making strategic improvements that can enhance value. This can make your properties more attractive to tenants and potential buyers, even in a declining market. When possible improve with low maintenance and durable options.

Flexible Exit Strategies:

Have multiple exit strategies in place. If the market conditions worsen, be prepared to adjust your plans. This might involve selling, refinancing, or changing your investment strategy based on the evolving market conditions.

Negotiate Favorable Terms:

When acquiring new properties, negotiate favorable terms. Look for motivated sellers and explore opportunities to purchase properties below market value. This can provide a buffer against potential declines in property values.
Same with vendors: contractors, property managers, lines of credits, etc.

Stay Liquid:

Maintain liquidity in your investment portfolio. Having cash on hand allows you to take advantage of opportunities that may arise during a market downturn and cover unexpected expenses. Set up HELOCs as a backup to cover temporary cash flow issues or take advantage of opportunities.

Monitor and Adapt:

Continuously monitor the market and be ready to adapt your strategies as conditions change. Stay proactive in adjusting rents, marketing your properties, and exploring new investment opportunities. Stay on top of the ever changing legal landscape.

5 Votes

Seattle, Washington

@Chenoah M.

Welcome!

1 Vote

Seattle, Washington

@Wayne Lee

Welcome!

Like all things it depends. I've played it both ways by investing in Member TN for cashflow and a landlord friendly environment, but in the end decided to reposition my portfolio and focus in WA.

Pros and con to everything. For me to keep it short it comes down to the speed at which I can growth wealth and cash flow. The Seattle market provide it for my strategy and I can mitigate the risk.

Feel free to reach out and I'd be happy to have a deeper conversation.

3 Votes

Seattle, Washington