All Forum Posts by: Rob Golob

What are the taxes and what is the cost to demolish and clear?

MAY be worth it to take a long term flyer and see what the property may be worth 5,10,15 yrs from now....

ps - No, I'm not interested.

Originally posted by @Dallas Trufyn:

When I had my bookstore and I sold books at retail, even though I paid wholesale price to buy them. This wasn't disclosed to every customer that walked through the door. I must have done something wrong? 

 Not at all.

However let's say you had a antique bookstore and I brought in my "whatever" and you said it was worth about $50 so you paid me $35.  Then you laughed as you called the collector to whom you would sell it for $16,000.  Did you do something wrong now? 

I believe there is legal precedence to say you have.

In 2008 looked at a 2004 loaded Impala for my wife.  It was just traded in at 113K miles and they wanted $7900.  I said no thanks.

2 months later the salesman called me and said car was headed to auction and asked if I was interested.  Would sell for $5500.  I took it.

Today it has 298K and is running strong.  My wife is an executive and still drives it in "business" situations.

Unfortunately, I told her maybe we would move up when it hits 300K......

Awesome thread and transformation!

I am far from a seasoned pro in Real Estate.  However, I don't understand the rental strategy.  You are making a very small return - Unless, of course I am missing something and I can surely be educated.....

Your gross income is $8,400 / year.  (Incorrectly) assuming ZERO taxes and ZERO insurance and ZERO repairs and ZERO capital repairs, your BEST CASE return on capital is 6%.

This is given your stated $145-155K value.  Let's say you can clear $140,000 cash.  Excepting for 1031 or however you choose to reinvest the $140K, that is 8400/140000 = 6%.

Again, this is just hot I see it, anyone please feel free to "wake me up."

You mentioned screws with fender washers and someone else mentioned deck screws. These are cabinets - use cabinet screws. "But Your Honor, I didn't really think it was necessary to use the correct fastener even after a costly failure......"

If one were to follow Dave to the T, one would most definitely become financially independent - a millionaire at least.  And one would never "lose everything."

However, of course, is the time and price to get there.  Each person has to decide.....

Originally posted by @George P.:

Originally posted by @Rob Golob:

Originally posted by @George P.:

i just did a loan model this am. i can take up to 50k at 3.25% interest. i picked 5 yr term. 

depending on the deals i have lined up and which one happens, i will take that loan. it's amazing rate anyway and i am paying it back to myself. it's a win-win!!

 Sounds good on the surface.

Suppose you had taken this loan out on election day.  You would be borrowing at 3.5% to give up annualized return of 56%. (Assuming you are "in the market" with 401k.)

Not so win win......

 Imagine I did that 3 yrs or so ago and the house doubled in value, so I made 100 percent profit.  With the profits I bought 3 other houses that also increased in value if not doubled. That actually happened. 

So you can keep that 56 percent that might have not ever happened. 

 I fully agree and understand.  Just pointing out that there is more to the "cost" of the money than the simple 3.5% paid.  The market could surely crash as well....

Originally posted by @Marshall Martinez:

Originally posted by @Rob Golob:

Originally posted by @George P.:

i just did a loan model this am. i can take up to 50k at 3.25% interest. i picked 5 yr term. 

depending on the deals i have lined up and which one happens, i will take that loan. it's amazing rate anyway and i am paying it back to myself. it's a win-win!!

 Sounds good on the surface.

Suppose you had taken this loan out on election day.  You would be borrowing at 3.5% to give up annualized return of 56%. (Assuming you are "in the market" with 401k.)

Not so win win......

 Where are you finding a 56% annualized return in the market? 

 The specific period from the past Presidential election through today.

Was a "for instance."

Originally posted by @George P.:

i just did a loan model this am. i can take up to 50k at 3.25% interest. i picked 5 yr term. 

depending on the deals i have lined up and which one happens, i will take that loan. it's amazing rate anyway and i am paying it back to myself. it's a win-win!!

 Sounds good on the surface.

Suppose you had taken this loan out on election day.  You would be borrowing at 3.5% to give up annualized return of 56%. (Assuming you are "in the market" with 401k.)

Not so win win......

@Eric DeVito, by your numbers (buy 255K, invest 30K, sell 499K) you nominally have $214K equity, not $60K.  Obviously, that assumes near 100% financing at purchase price.