All Forum Posts by: Randy E.

 Ditto.

If not 100%, it's so close as to not make a difference.  The only significant difference would be if I subtracted my primary residence from the equation.  I also have some stock from a couple of startups I worked for at the turn of the century, but I haven't checked on them since ... about that time.

My reality a decade ago was that I didn't have enough liquid worth to invest in much. I chose RE over stocks or anything else. Fortunately, REI has worked fine for me and the future looks bright. Much brighter than if I had put my measly savings eight years ago into an index fund. I agree that's a fine way to park and grow money, but I need something with more ooomph. I need long term growth, mid-term growth, and immediate income. RE was the answer (for me) then, and for the foreseeable future.

LOL.  I hire subs myself and have found some guys that do very good to great work.  But I too have discovered that half of them will slack and slide if you don't "keep them on a time schedule" and cajole them regularly.  These are not the guys I hand off to acquaintances who ask for recos, because while I can get good work out of them, I'm not sure if other employers would be so hands on -- and a hands off employer might not get the same good results.

I guess saving money by acting as my own GC means doing some of the things a GC does. For now, it's still very much worth it to me. One day, I'll be a real BP REI and I'll let the real GCs handle the cajoling.

Hey!  I thought I was going to be the Monkeyboy mascot dude hanger-on.

Well, even thought that title was taken from me, CONGRATULATIONS!  I've stuck to the B&H model so far, but I can feel a flip coming on.  I'll be sure to use this 1 and MOST IMPORTANT RULE OF SUCCESSFUL FLIPPING when I do so later this year (or early next year.)  Without it, I'd be lost.

I'll be expecting my mascot commission check by the end of the month.  You can replace me, but you still have to pay me.

 Definitely something to consider.  I thought that might present a problem, but decided to wait until that day arrived to worry about investigating the specifics.  If our situation turns out to be like yours, he'll have to be a "silent" partner in the beginning.

 Congratulations!

I've been thinking of doing the same for my three kids.  My son is in high school, and I think when he goes to college, I'll "partner" with him on a place for him to live in.  Hopefully, I'll be ready to partner with my daughters a little earlier than that, but we'll see.  Time is relentless.

Cheers!

Touché.

 Ditto

 Antonio, I was in eviction court 2 or 3 years ago.  The case before mine was a landlord evicting a tenant, and during testimony it came out that the landlord, at lease signing, had collected 1st month, security deposit, and last months rent.  The magistrate asked why he would go to that length.  The landlord explained that he's had to evict before and he's learned that it always goes long enough that the security deposit doesn't cover the combination of damage and the missed rent during eviction.  So, he collects what he calls "last month's rent" to ensure he receives closer to the amount he should have received all along if there had been no eviction.  The magistrate agreed that was ok in North Carolina.

I don't do it, but from what I've witnessed firsthand, it's legal in NC.  No good in NJ, but more proof that all Real Estate is local. :)

 Like any reasonable disagreement, this can be viewed both ways. 

Don't say the proponent for the prenup is "going into the marriage already prepared for it to fail".  Instead look at it as if the anti-prenup partner is "going into the marriage thinking it is going to fail." 

Why?  Because if the anti-prenup partner is 100% certain the marriage will last forever, why would that person care if there is a prenup?  As long as the marriage lasts, both partners reap the benefits of the wealth.  The only reason for a partner to be vehemently against a prenup is because that is the partner who most feels the marriage will not succeed.

At the very least, maybe both partners realize that any marriage can end in divorce.  And maybe each partner is arguing their side because they want what is best for himself or herself.   And maybe all this talk about "going into it planning for failure" is simply a red herring to distract from the original question.

This could be a very simple discussion, or a very nasty one ... between the two parties.  If it became nasty, that would be enough to give me pause about getting married to that person in the first place.

@Quwan Booker,

Part of this depends on your financial situation.  You've already said you wish to invest in another property soon.  What you haven't said is does your financial situation allow you to do so?

Scenario 1: You have a high credit score, a good-paying job, and after refinancing your duplex and pulling out the $40K, you would have no trouble getting a mortgage on your own to buy another property.  If this is the situation, then I would continue to pay her the $550/month and quickly buy another property.

Scenario 2: For whatever reason, once you refi your current duplex and pull out the $40K, you will not be able to qualify for another mortgage to buy your next property.  You will have the $40K cash from the refi that I assume you think will be enough to buy another property in your investment area.  If you spend all or most of the $40K on the next property, and if you will have some cash reserves for emergencies, I can get behind this scenario where you would continue to pay her $550/month.  There is higher risk here for your mother, and to account for that, I would suggest you set up a separate savings account and put at least 4 months' payments to your mother in that account.  That way, if you run into a financial hiccup, you can temporarily pay her from that account until you steady the boat.  Ensuring she gets her money each and every month should be your highest and best priority, because none of this would have been possible without her assistance in the first place.

Scenario 3: You have a terrible credit situation, a low-paying job, no savings.  You plan to refi, spend all the refi-money to buy another property, and from that cash flow you think you can make the monthly payments to your mother -- and even if you're a little late, you know she'll understand because, hey, she's family.  If this is your plan, you should refi, pay her the $20K, and risk the remainder however you see fit.  But you should pay her off the top, in full.

But whatever you do, because she backed you the first time, you owe it to her to keep her informed every step of the way.  Until you repay that loan in full to her satisfaction, it's still her money you're playing with.

Good luck