All Forum Posts by: Marshall Easlick

@Courtney Fricke, it looks like the balloon payment and the interest rate are the two new developments. The interest rate is good, so that's probably not a big deal. Does it still cashflow enough for your criterion? Would it still cashflow after you refinance in 5 years if interest rates at that time are 7%? Did you work the cahsflow numbers with $69,000 balance, 7% interest (not likely this high but it's possible), at market rate rents (or close to them)?

A lot can change in 5 years. Even if these numbers all look peachy, do you think the seller would be interested in re-negotiating and carrying the note for an additional term?

Again, this sounds like a solid deal and it will probably cashflow in 5 years after the refinance. I am just asking questions to invoke thought processes that might not have occurred yet.

@Chris Lopez, no. I made a couple of posts about the scheduling because at the beginning of your post you state that the event is from 6(AM) to 9PM. After I made my posts, I noticed that there were two other places that stated the event was from 6(PM) to 9PM. I was actually interested in attending but, unfortunately, I have an unbreakable engagement at that time.

I think we have a great community here and I would never defame an event or an attempt to gather investors for further education. Good on you.

@Scott Shuster, @Tina S.

Excellent post, Scott. Tina, don't beat yourself up because there are always more prospects. As Scott said, you are in the driver's seat, you just need to be able to focus on the conversation. I think Scott's advice to let the call go to voicemail is golden. It's a negotiation tactic: make sure you are in a position to handle the call. What's the worst case scenario? You call them back 15 minutes or half an hour later when you are able to sit down with your list of questions to ask. No big deal. They probably won't find another place int hat short amount of time and if they do, you probably don't want them as a tenant anyway.

Your one thing that will make it easier on yourself sounds like a bullet point list of simple questions to ask. It gets easier as you do it more. 

@Zach Bollman

I was traveling all day, so I have been out of touch. I have been looking at performing, second position notes for around $20,000. So when I asked how much more capital intensive commercial notes are, I guess I was asking a question from my current perspective, which is obviously different from yours. In my mind, commercial real estate is more expensive than residential, so that's more what I was asking. However, I think you answered it with the $80K comment.

@Zach Bollman, @Jay Hinrichs

Ok, that's what I understood from the conversation up until that point, I guess I was thinking that one note would generate two different income streams somehow. I knew that sounded too good to be true but I was hopeful. Thanks for the clarification, guys.

So, on that note (pun intended), how much more capital intensive are commercial notes versus residential notes?

Unnecessary post.

Unnecessary post.

@Jay Hinrichs, you mentioned "dual form of repayment and many exits.. ". What did you mean by dual form of repayment?

@Courtney Fricke, I am just throwing ideas out there in case they were relevant and you hadn't thought of them. I am interested to see if anyone else is going to chime in and bring some different ideas.

@Courtney Fricke, it sounds like you know what you're doing. I am jealous of that deal and I would pull the trigger, too. How does the price per square foot look compared to the duplexes that you're using as comps? I am curious since the cottages sound like smaller dwellings. I am not suggesting that would be a deal breaker for me since the payment is so low and there sounds like a TON of potential- I am just curious. Another separate thing to consider would be depreciation. It sounds like the cottages might take up less land than a duplex, so I think you would not be able to depreciate as much. I bet Jay knows more about than me.

@Jay Hinrichs, sounds good to me! I am just starting out and leverage makes sense for me right now.