All Forum Posts by: Matthew McNeil

No problem as long as your RE assets aren't in an LLC, otherwise you've co-mingled funds. Thus you've pierced the veil regarding a major tenent of Asset Protection.

Simple answer; No. You can do a search and read all the comments from investors who've used the warranties and realized it wasn't worth it. I consider my decision to buy warranties many years ago as the single worst mistake I've made as a REI. AS @Jason D. wrote above, The money paid to the warranty company is MORE than claims paid out.

Someone offered to sell his house to me with no down payment.  He held the note until I sold the house 6 years later, which gave me a sizable amount that I used to purchase more properties. 

 I've used the same property management company for 10+ years.  They've taken excellent care of me.  Lonsgest I've ever had a vacate house is 2-3 weeks.

PM me and I'll provide the contact info if you want.  Cheers!

The debt-to-income ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments. The DTI ratio is one of the metrics that lenders, including mortgage lenders, use to measure an individual's ability to manage monthly payments and repay debts. 

https://www.investopedia.com/terms/d/dti.asp

Ben, your points are entirely understandable. However, to write that "I don't know that appreciation is ever anything other than speculative" is something I need to counter.

The word "speculative" implies that the decision to invest is based on a guess or unproven strategy.  Too often that word is automatically injected to describe an investment in a non cash flowing asset.  If too much emphasis is placed on the hope of appreciation alone then the term is justified.

However, and this is my counter, the word “speculative” can appropriately be set aside if the investor has experience buying, selling, exchanging, and leveraging assets in a market where he has a long track record and understands his or her market.  Just because someone invests in a West coast asset that doesn’t cashflow is not indicative of speculation.  

Long term success isn't proportional to what you may learn from majoring in business management.  It helps, but much of it has to do with gaining knowledge in areas that compliment the direction you choose as a career or businessman.  

You're not crazy nor are you on the island alone. There are two ball parks that BP members play in, each of which have different guidelines. One being West coast investment properties that don't cashflow but appreciate significantly higher than the Midwest and South. I'm a West coast investor and I although I understand the mindset of people investing in different regions, their approach to REI is a different approach to REI in the West. I'll give you an example based on your post. A Midwest investor would NEVER invest in a property unless it was cashflowing a minimum of $100 per month on the low end. However, a West coast investor would not necessarily walk away from a sub $200 per month cashflow if he understands that appreciation in his market is not speculative and he doesn't need the CF at this time, and he has enough funds to cover vacancies, maintenance, etc.

I'm getting ready to add another SFH to my portfolio and I've been researching and running numbers for 12 months. I'll cashflow $50. I don't need the CF rightnow and I have more than sufficient emergency funds to cover unforseen problems. I'll hold it for at least 10 years before I pull money out. As a West coast investor I'm very confident its a sound investment located within a healthy market that's appreciating and supported by a university and state capital.

 Aside from the deposit transfer question you might want to consider using an Estoppel Certificate or Letter.  This link provides more info;

https://www.biggerpockets.com/blog/2013/06/03/exis...

 Jared, I don't know about structuring the deal as you asked, but I can advise you regarding the deal needing to be legally signed.

The ONLY qualified entity that can legally notarize a Real Estate Purchase Agreement is a Consular official at the US Embassy near the location of the aunt.  

I've used the Embassy before when I'm engaged in buying and selling while I'm overseas.