All Forum Posts by: Scott Johnson

@Will Barnard, if you could elaborate more on your statement, "...double closing is NOT the only way to get around a no assignment clause so that statement is incorrect." it would be much appreciated. Always looking for more tools to add to my tool belt. 

Agreed. Daisy chaining is an amateur practice and rarely ends well. 

I think the biggest concept outlined here is to understand the law. I went as far as to read NCREC rules and regulations, contact them to confirm my practices were solid, and read relevant legislation passed by our general assembly. Always operate within the law and be honest with people you're working with/clients. 

Agreed. And the judge will throw that book at us if we don't follow the lease. If we give one person a pass and enforce the rules with all of our other tenants, we're opening the door for a discrimination suit. Ain't hapening.

I'm confused. There's no longer a Bigger Pockets app in the Apple App Store. Do you mean when we use the site in our phone's web browser, @Alicia Marks?

If your numbers are solid:

Property A: $2,400 Annual Cash Flow / $13,108 Down = 18% Cash on Cash Return (Before loan pay down and depreciation) That's 5 years to get your money back.

Property B: $2,400 Annual Cash Flow / $21,847 Down = 11% Cash on Cash Return (Before loan pay down and depreciation) That's 9 years to get your money back. 

There are a lot of variables involved, including management and the current condition of the properties. Just take these numbers into consideration and make the decision that you feel is best for your portfolio. Honestly, it's hard for me to understand how a 4 unit would be producing less cashflow than the duplex.

Hope this helps!

Up to you, @Martin Nowak.

When I buy rentals, it's for the long-term benefits. Cash flow, loan paydown, and depreciation. I don't pay a lot of attention to appreciation. That's just icing on the cake. 

If you have a place to park that capital that'll give you good returns then go for it, but 3K is more than most people make in a month here in America. Play Robert & Kim's Cashflow Board Game and reflection before you make any decisions.

Hope this helps!

This is where I'm at with this. It sounds like you're trying to make a deal work. The problem isn't that you need to make this deal work, it's that you don't have enough deals to choose from. The question then becomes, "how are you looking for deals?" It's important to remember that on the MLS, in a lot of areas, people are bidding things up like crazy. So how can you find more deals that will work best for your portfolio? That's the question.

My question was whether you're been building a brand or not. Think Coca-Cola. Their brand is worth billions. 

It's true that there are few assets in a flipping business unless you keep a warehouse of supplies or have a company car you're willing to let go. We're building a brand right now, but unfortunately, a lot of the media and advertising is based on my face and personality. I don't like it and will eventually find someone who likes the camera more than me, but our logo/name is on point and neutral. 

A recommendation is that you read "The Millionaire Real Estate Investor" cover to cover multiple times. Keller talks about key points that will allow you to sell your business. Lists of customers, brands, and systems are the key. I'm building my business to sell, just in case I decide to do so. 

Come on by and rub shoulders with local real estate investors, lenders, and vendors while enjoying some of Greenville NC's finest beer! Seating in the front (if it's warm enough) and inside! This is the first meetup of many! Get Excited! Can't wait to see you there!

Meetup is sponsored by Christian Jacobson of Homevestors! Can't wait to see you there!

 I'm by no means a Guru, but if you'd like to discuss or roll play the conversation, send me a message. I do have property management experience and had to set tenants straight/evict.

Option 1

The Federal Reserve is already discussing rate hikes. Playing with variable rates is like playing with fire at this point. While I do believe they will revert to their dovish behavior after the first one or two hikes (when the markets crash like crazy) the increased risk could leave banks keeping their rates higher. 

You can do what you wish, but I wouldn't touch variables with a 50-mile pole.