All Forum Posts by: Kyle McCorkel

Michael Elia Good luck!

“Lets say you dont want to sell...You refinance it again, but then you may be get stuck with a property that you have a mortgage on for 100K but its worth 50K because the market is down and you refinanced it when the market was high, and now you have a problem..” Why do you have a problem in this situation if you are never going to sell??!! Who cares if you are “underwater” if the asset is making you cash flow...just don’t sell and you won’t have a problem. Also, the rich might still sell, they just might sell and re-leverage into a larger property.

Chad Reynoso typically 5 years in a rental property. Tenants are harder on it than owner occupants.

Kevin Koch Welcome to BP! Send me a PM and we will see about possibly meeting up.

Rich Cavanagh You don’t have a crystal ball, but you can prepare for the worst by doing the following: Buy only cash flow heavy properties. $200/month cash flow after accounting for vacancies, maintenance, management, EVERYTHING. Let the cash flow build up in a liquid checking account. Don’t spend it, don’t use it to pay down the mortgage! Keep plenty of cash (or highly liquid, safe securities) reserves - I keep a minimum of $50k for my 10 units. Your cash flow is first line of defense. Rents can drop $200 and you are still alive and breaking even. Pad your reserves with the cash flow. The liquid side account absorbs month to month fluctuations (extended vacancies, major repairs, etc. they WILL happen) and keeps you alive until you can find other options, or until conditions improve. You absolutely don’t want to HAVE to sell when the market is down. That’s how you lose. Sell on your own terms, and ensure you have that option by minding your cash flow and liquidity.

Piri Mustafayev Ask other investors for referrals. Get quotes from all of them. The quote is to get a number obviously but also kind of an interview for you to judge their integrity and character. I like to find guys who are kind of on my level - have some experience but working on scaling up. That way as I grow my business they kind of grow with me.

Brandon Phillips I just started using it and love it. All in one - you can get your list, build your letter/postcard, and send your direct mail all from the same platform. I just sent my first mailer this month and ordered the next two months as well.

Alright I have to disagree here. HELOCs are a great product and I use them for acquisitions and rehabs, but I think you should ALWAYS do a cash out refinance using a conventional or portfolio loan (at least in the current lending/interest rate environment) - HELOCs are typically variable interest rate - are rates currently trending up or down? (Hint: up). Since this is a LONG TERM loan, lock in the fixed rate! - HELOCs are amortized over 10-15 years instead of 30 for a regular mortgage loan. The shorter payback KILLS your cash flow. - Less important, but still a factor: you can’t get a HELOC in an LLC whereas if you find the right portfolio lender you can get a mortgage in the name of your LLC - It is typically more difficult to find a lender who will do HELOCs on investment properties AND the LTV is typically much lower on investment properties. Lower LTV = less cash out of the deal. I have a HELOC on my primary and two HELOCs on rental properties. But they are 2nd lien position and I kept the fixed rate mortgage in place. I only draw from the LOC for a new acquisition or rehab, and when I complete a refinance I use that to pay my HELOC balances back down to zero.

Agreed with Doug Utberg X 100!!! After getting my realtor’s license and learning the basics about property ownership, I have come to the conclusion that we really don’t own our properties. The government owns them. Don’t believe me? Try not paying your “rent” (i.e. property taxes)! Try telling the government they can’t build a highway through your land. The government just makes you think you own property, so then you’ll take care of it, but really they have the power to do what they want with it. We just “rent” it from them via property taxes.

Kevin Robinson just go, there are always a ton of “new guys” at every REIA Definitely don’t have to wait for business cards.