All Forum Posts by: Scott Johnson

To the free markets! 🍻

Keep going strong, @Tanner Holligan!!!

Also investigate buying properties under market value, holding them for 6 months and refinancing them to pull out capital. Your capital is locked in real estate and not at the mercy of the banks and so long as it's got some cash flow, you'll benefit from loan paydown and depreciation.

Investigate the HOA to confirm if there was an increase that was voted on and approved by the HOA membership. Sometimes they can be "on the table, but not yet approved." This is a material fact that should be disclosed.

You can get made and run headlong into legal action, but those fees add up to $780 for the year. Court costs, in the event you lose, will be far more.  

I'd start by filing a complaint with your state's real estate commission and go from there. 

 Truth, @Chris John. 

One thing to also note @Taylor Gaylard, is that most investors know of only two ways to make money with real estate: 

- Cash Flow

- Appreciation

Cash flow increases your taxable income and Appreciation is something you can't control. Because of this, I don't focus on them. Two things to learn to use are: 

- Depreciation

- Loan Paydown

If you focus on these, not only can you pay a higher price to get a great return on a property, but you'll be earning tax-free profits on your refinances while also reducing the taxes you pay from your job.

It'll take some education on your part, but this is the strategy I've begun to specialize in since it makes way more sense to me.

@Alyssa McEwan, that's a great question for Adam Schneider. He's a lender in Raleigh, NC, and does a great job of keeping his finger on the pulse of the market.

From my experience rates are much higher so they've stayed consistent on my end. They only lend on 70% or less of the ARV, so that leaves them room to recover their capital if someone defaults on a loan.

@Taylor Gaylard, if you bought that property today and held it, how would a market correction affect you?

@Anthony Zotto, is the return from the 4-Plex meeting/exceeding your income needs?

If so, are you willing to pay expenses with that money that otherwise could have been rolled into a new investment?

@Jon Kim, I'm reading up on the bonus depreciation as we speak, but I'll refrain from giving any advice as I'm not a CPA. 

I'm still figuring out how it fits into my strategy for MFR and SFR investments.

Congrats, @Jason Reuben!!!!

It's always exciting to hear about BP members who made a plan and executed it!

Many more to come! Here's to the free markets! 🥂

@Quota Thornton, 100% start calling lenders and asking them. Seek out and contact:

- Local Small Banks

- Larger Commercial Banks

- Mortgage Brokers

There are also other types of lenders, and your research will help you find them!