All Forum Posts by: Logan Hicks

Very simply put, Very few companies pay dividends for my money above 5-8%.

Minus the immediate capital gains, the 1% fund fee, and the 1% managmeent fee, im at 3-6% respectively.

So 6% on 200k to be fair, we say is 12,000. Split by month, 1k. Thats before the 15% I lose to taxes, but well ignore taxes.

I go buy a 200k property for 60k, put 40k into it, im at 100k. I now have two of them for ease of math.

I have 2 properties worth 200k for 400k worth of property. I have 200k worth of stock, making me 6%.

My two properties are collectively worth 400k total, and increase in value each year by a nominal rate (1-3% at best). My stock pays dividends, and increases based on dividend payouts (3-6%).

As each year passes, I expense less and less into my property, until I drop pretty much all real costs (minus upkeep repairs). 

If I never sell my properties, and only make 10% on my properties each year, Im only making 40k...each year.

Additionally, relatively rapidly, I can leverage my property to buy more property, usually at 3-5%. To leverage stock, you can only do up to a 1:2, the stock is leveraged, and you are charged a healthy percentage per year for it, much more than 3-5% usually, and there are heavy limitations on how much you can leverage.

With properties, usually its as many properties as you have to leverage.

Stock isnt universally leveragable, houses are.

Now collectively remember, we have 100k into the houses, its worth 200k each, so I leverage my houses, and now I have 85% of the worth of the house in cash in my hand now (340K). Assuming I leveraged my stock, I now ONLY HAVE double the stock, its all I can have.

Lastly, houses dont have CEOs, and dont have to build a new product or develop a new service each year or potentially go out of business.

Honestly, I cant even trade my stock for an Ipad, I have to sell it first. I can trade a house in detroit for one.

All in all, Id say houses are more liquid than stock.

*bows*

Anyone asking for 10-30k for something they got for free from people here should go toss themselves off the first house we helped them get. 

Youll find plenty of mentors, usually for free, at your local REI groups, check there. I know houston has at least 1

I want you to look at this really carefully.

Initial Cost: 175k

Estimated Renovation Cost: 60k

ARV: 300k

REA Fee: 10% (30k)

Estimated Net Cash flow: 25-30k (6 month time frame, ideal)

So we begin.

Off the start, you expect a 235k cost, just to get the project done. What you dont project for is the usual 10-15% additional unexpected costs, or another 30-45k in additional costs. (which is more than your expected profits)

You seem to have a 10% fee or something, which is out of this world, missing from the fray, stated under "expenses and selling costs"?.

You are selling above the average american median home value.

Source:

http://www.huffingtonpost.com/2014/03/13/median-ho...

You have it priced above what the average american can afford.

Source:

http://www.fool.com/investing/general/2015/03/23/h...

You are selling in a buyers market at the moment.

Source: pretty much any financial RE site on the planet. 

Your breakdown of your profits are this:

30k (Ideal) / 6 months (Ideal) / 2 (current situation) = 2500/ month. Minus the mortgage for the one guy, cause hes forking out 7k, or in other words, 8000 / 6, which is roughly 1335/ month.

Divide your values by 160, for standard work hours, and you get 15.63 and 8.35 respectively.

In other words, less per hour than your drywall hanger or painter are making.

And thats all assuming you have ABSOLUTELY NO unpredicted costs. 

Take that 235k, and put it into an MFU with an already established portfolio, or a portfolio of preestablished SFRs.

Trust me, youll thank me later.

ok, imagine this.

You have a standard 2400 sqft home (for ease, well say only 2000 sqft are available)

Now you have a 10x20 (200 sqft home)

Now imagine this.

You have a 8x4x4 ft car (128 cubic feet)

Now imagine you have a 3x2x2 car. 

Would you want to have a 3x2x2 car?

http://www.caranddriver.com/features/the-physics-o...

For additional scientific support.

Another thing to keep in mind is agents are a tight community. Pissing in the well so to speak will make life harder for you in the near and far future. Be careful kicking your own tires as they say, you never know when youll knock one flat.

Just eat the loss and take care of your good tenants. Happy tenants are good tenants, happy good tenants are great tenants. 

Absolutely, everytime, and without question. 

Also, if you want to be smart and cheap about it, buy 5-10 different sets of locks, all the same type, but different lock key numbers,. All the locks look the same, but arent the same key. Helps with conformity, as well as lock purchase cost, and allows you to continually cycle locks so that you dont have to worry about previous tenants.

Take what sounds very clearly to me to be an attempt at extortion to your attorney. Sit back, laugh, let the law do its thing. 

As I tell everyone, you aint got **** if you aint got it in writing. Its a plain as day as I can put it.

it sounds like hes charging you for multiple coats + time for the paint to dry. Is that the case?

If so, its a fair price.

30/hr is a decent price, plus its painting your entire house. To include cabinets. a drop ceiling, and a kitchen, all of which are nightmares to paint.

Read the title, laughed, Austin.
Any place where I can trade an Ipad for a house is a place I dont want my money going near, through, or around.