All Forum Posts by: Naomasa Hase

@Rich Bultema thank you for the information!

Thanks for the post and great information from everyone, I'm learning a lot! Has anyone had success getting a HELOC on an investment property (ie non-primary house)? What did the process look like?

This is actually a fun thought experiment and I'm enjoying the responses here. I have an idea. Some have brought up buying call options in the equity market, but how about selling cash-covered puts to collect premium. 

Basically, you're selling a cash-covered put 30 days out (monthly) that's going to get you an 8% in premium for the $60k you have in cash ($5000/month). 

Here's a real life current example. Delta (DAL) is trading today around $22.85. You can sell a $20 put expiring on May 15th (29 days out) for $1.65. If you sell 31 contracts, you'll collect a total of $5,115 in premium. Cash secured requirement would be $56,885. 

Now, let's see how this plays out at the expiration

Scenario 1: DAL trades above $20 and the put option expires worthless, and you keep the premium, $5,115.

Scenario 2: DAL trades below $20 and you are assigned the stock. 

The breakeven price in the trade is the strike price ($20) minus the premium collected ($1.65) = $18.35. 

If DAL stock price is between $18.35 and $20 at expiration, you're still buying the stock at a discount. So not too bad.

If DAL stock price is below $18.35, you'll start to see losses. (Because you could have just bought them for cheaper than your breakeven price).

So in scenario #1, you got your $5k return for your $60k in cash you hold in a month. In scenario #2, you ended up now owning the stock which was not the intent. But now, what you can do is sell covered calls against the position you now own looking to take in premium as you did initially. 

Obviously there's inherent risk that comes with the stock market and options, and I'm not advising you to do this. But this was meant to be for an alternate strategy for a fun thought experiment. 

Looks great, congrats! Thank you for sharing!

I've moved forward recently with RLS as what they offer meets what I was looking for in terms of estate planning and asset protection with series LLC. They are working on setting up my estate plan, traditional LLC, and my series LLC which should take about 6-8 weeks. So time will tell how their services are moving forward.

I initially spoke with Edward, he's basically the guy that will get some information from you and you can ask general questions. The next step was talking to an staff attorney where you can ask more detailed legal questions. This does require a $150 consultation fee, which I think is a reasonable hourly rate for speaking to a lawyer especially if you're serious about finding out if the services they provide are right for you. I learned about most of what they do for free through Scott's blog posts and listening to the BP Podcasts. I was quoted about $6k to $10k depending on what what products/packages that included what I was looking for. My guess is that they'll put together a quote for what you are specifically looking for.

@Zack Korenstein Did you end up going with RLS? If so, how has your experience been? If not, did you go with someone else? How has that been?

@Paul Beets Have you gotten anywhere with the CPA issue? 

@Neil Rose Thanks! I think it'll be great to chat and connect sometime.

@Patrick Hill Thanks for letting me know about the happy hours, I'll keep an eye out and try to make it if my schedule allows!

@Paul S. I'm definitely happy about when I was able to get in on that condo. What do you mean about "Green Zone"? Just the areas Gilbert bought up or is it some other special zoning?

@Ilcar Rosario Who did you end up going with? I am looking for a property manager in Detroit as well.

@Chris Mason @Matt Devincenzo Thank you for the help!

Hi everyone!

My name is Naomasa and I'm a new member from St. Louis, MO. I am definitely a novice, but I am looking to expand my knowledge in the real estate community. My background in real estate is that I kind of stumbled into being a landlord. I bought a condo in Detroit and after living in it for 3 years, I moved out of state and have been renting that property now for about 2 years. My interest is to start acquiring more rental properties (single family or multi-family) in St. Louis. So naturally I came across the BiggerPockets podcast. I'm looking forward to learning and hopefully be able to contribute to the community as well!

I was wondering if anyone has any experience or knowledge about refinancing a mortgage that was initially a primary residence that has now turned into a rental property.

In 2015, I purchased a condo on a physician loan 7/1 ARM, 0% down at interest rate of 3.5%. I lived there for 3 years and moved out of state. I kept the property and have been using it as a rental property. With the fixed rate time window closing in 2 years, I wanted to explore refinancing. My question is if banks will continue to finance it as a primary residence as it was when the mortgage was initially taken out or they will now look at this as an investment property and adjust rates accordingly.

Thank you for your help.