All Forum Posts by: Logan Hicks

ok, this is a simple way to think about appreciation.

Would you rather me give you 200 dollars a month for 20 years, or would you rather go buy 200 packs of MLB 2015 Baseball cards? 

The whole idea is the cash money is residual, and always reoccuring, while the baseball cards are a complete draw of luck based on market factors, and performance, and are only as valuable in the future as people value them, as well as based on the concept if you can even find a buyer to buy them.

The same is with the housing market.

What a house is worth today mayis not indicative of what it will be worth 20 years from now.

Cash money in hand is king, as it can dance and sing. Cash money stowed away is mocked and jabbed all day.

What it means is money that is actionable by means of accessibility is highly potent, and can be applied to many avenues, while money trapped in asset worth is relatively worthless, and often times the running joke of the upper 10%. You can have billions in assets, thats fantastic. Unless it provides you with cash flow, its worthless.

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I would deny her.

Her documentation would be most likely from a married filing, which means her income might be mixed in with the income showing.

Additionally, her costs stand to go up substantially with the divorce attorney. Unless there is a lot of slack from her income, her divorce could cause a substantial issue with her meeting her obligations, including rent. 

I would say no and go with the other, more stable tenants. 

Like all major life changes, it involves risk, and risk is dangerous.

@Everyone suggesting she borrow from family

Hope for success, plan for failure. 

If OP has to choose already between paying off CC or paying down on a house, its obvious they cant afford a large loss like 9100 easily. 

This would mean there wont be a mitigation of risk in the event of a failure. 

Imagine how much more awkward Thanksgiving and Christmas will be when conversation shifts from "mmm great food" or "insert sports team here" to "How bout that money you owe me?"

9100/40k , rental income usually is ignored, or split down to 50%. 

You are roughly at 24% DTI with the CC debt alone. You wont be approved for another house.

14% interest wouldnt be bad at all, if it werent for the fact that you have a high DTI at the moment due to your current income.

Pay off the CC, start banking cash for the next house purchase.

@Account Closed

The answer, is probably no. Not at 5k. Its too little to make a real difference.

Take this for example.

The average expected repair costs are 20-60k on the average project for most reasonable flip projects. (excluding NY, DC, and CA)

With 5k, I couldnt pay for pretty much, well anything. An average roof job will be 5-7k in materials alone. Flooring job, maybe, depending on the space, and the material, but even then, im looking at 3-3.5 per sqft, average home at 2300 sqft according to the NAHB, and im at well over 8k at that point. Condos? Maybe?

If nothing else, what will REALLY happen, is you will be misused and/or lied to, and be used to fund GAP payments of hard money lenders, where your money will be a points payment on a GAP payment to make the loan overall come as close to 100% financed as possible with minimal skin in the game.

Pretty much, the fall guy on your average house flipper, who has grandoise dreams of millions of dollars of profit, but wants little to no risk to themselves, and wants to do everything with someone elses money.

Its called a dropbox sir.

Also, No cash. Never cash. Always money order. Walmart offers them, so does WU, or use certified checks.

A dropbox doesnt sleep, doesnt eat, doesnt qualify for minimum wages or healthcare benefits, and has a one time fee of ooo...20 dollars? 

Let me go ahead and throw my dog into this fight.

I own 26 businesses, in a 3 tiered stack, with two sister conglomerates, one thats a development stack, and one thats a non profit foundation.

Ive seen upwards to several THOUSAND companies registered to a single location. 

It can be from any variety of reasons, up to and including:

1. Tax purposes

2. zoning requirements

3. Certfiication requirements

4. Convenience 

5. Mail forwarding

Im also a private lender, doing high risk lending, as well as Gap funding for projects, paying the full down, at high interest and points.

My evaluation of the deal presented by Matt would have gotten a no from me as well, and heres why.

I take extremely high risk on rehabs. Often times I take several points, anywhere from 10-15 points on the 10-20% down, and 15-20% interest. 3-6 month term.

I want you to refi me out, ASAP more specifically.

As for the deal itself, I would have said No almost right away, just because with the points alone, it puts you at 107-109k on the deal in costs, before you even pay me interest, and that leaves you less than 15% profit, which is below international market rates. 

If you arent making generic market rates, you arent making money, and your money isnt working for you.

Don't get me wrong, Id love to make money, but I only do one type of business, and thats good business.

A deal where you are paying substantial fees and costs, and only making what would probably be 3-8k at best, well thats just plain bad business.

@Joe Bertolino

Omitting that the renter was not paying full market rent, and had been doing so for a lengthy period of time would be considered an omission, as it was a known fact, and was intentionally left out, as it would have been detrimental to the deal (in this case, a rejection of the deal, and withdrawal of the offer). 

As for lawsuits, if anything, sue the brokeage. 

Brokerages collection commissions from dozens, if not hundreds of agents at a time, their cash flow is heavy, and noone likes a bad reputation, especially someone whos entire lifeblood comes from their reputation. 

The brokerage will most likely settle the case, probably with a Offer + Non-Disclosure Agreement, especially if its a legitimate claim.

Lengthy battle though ahead if it goes to court. Civil cases are always drawn out, intentionally delayed, and costly.

Cash out refi, and then refinance back to a 30 year fixed.

Youll eat a few points in costs from the refis, but itll give you cash equity in your hand, and you already have a tenant with a positive payment history. 

Its an easy sell to the bank with that much equity. 

150 in value, 100 in UPB, ~65% equity. Cash out refi to 80 or 90, youll get 15-25k. Minus your refi costs, youll walk with roughly 7-13k. Its enough for cash down on the next investment property.