All Forum Posts by: Sean Tracey

@Kenneth Shelley as a total newb myself, I hope you'll take the advice that Don and Jay are laying out. If you switched sides in your scenario and were the person lending the money, would you feel comfortable with all factors being considered? Hubris is a killer, and has no place in investing of any kind IMHO. Healthy confidence in one's ability to learn the ropes and slowly build a successful REI career is good, but you're probably moving way too fast. Build the foundation first, and then one day you can start doing more complex deals with the experience to back up your confidence. To be completely honest, if you were my friend/family and approached me with something like this, I would never consider it for a second.

It's not to say you can't succeed, but the risk vs reward (10%?) wouldn't entice me in the least. As a friend/family member, I would hope you'd look out for their best interests as well as yours. 

Am I reading this right? The apartment hasn't been made move in ready yet? If that's the case, then I can't imagine there's any other option than firing if you can find a replacement. The apartment should be cleaned and ready to go in no time at all. This would be an absolute deal breaker for me. 

Thanks for sharing @Stephen Hundley and congratulations. This is very inspiring stuff and another great example of how to use other people's money. I do have one question, though - Why do you refinance into commercial instead of traditional after you've renovated? 

 For me, it wasn't that particular analogy but the way the info is being laid out in this thread as a whole. I've been put off by Bob's presentation of this kind of info before, but I had a feeling I should look into it further. I'm glad I continued to read his posts because I think there's some valuable info to be learned. 

Thanks for taking the time to provide this info @ Dave Lin.

Thanks for sharing those details @John Duffy. Yeah, I'm not sure where I stand on the LLC debate. I've got a bit of reading to do before I consider myself informed enough to have an opinion on the matter.

Thanks. How much ROI do you shoot for after accounting for the 10% PM fee? Also, on the subject of LLCs, I've read some interesting threads on BP where people debate their usefulness:

https://www.biggerpockets.com/forums/51/topics/199968-do-you-need-an-llc-absolutely-there-is-no-debate-about-it

https://www.biggerpockets.com/forums/51/topics/177095-asset-protection-podcast

Thanks again @Dave Lin. Is there a quick way online to verify if I would need flood insurance for a property I was interested in? I located a map of the "flood plains" in Easton, and it seems most of the area is OK. Am I correct to assume that only properties located in the 100 and 500 year flood plains would require flood insurance?

Thanks @Brian Wolfe. Your info is extremely helpful. That sounds like a great team and system you've built for yourself. Impressive portfolio to be managing yourself. How far of a drive is it to your properties in AZ and TX? 

@Andrey Y. I would never depend on tenants, no matter what class, to keep tabs on my investment. I'm not saying I would visit frequently, but there would be no more than a 6 month gap before I stopped by to proactively inspect the condition of the property. If they happen to make any legitimate repair requests, I'd be glad to take care of them before they turn into something bigger/more costly down the line.