All Forum Posts by: Eric Bilderback

@Jay Hinrichs Is that Saddlestone where your development was?  I remember it well as a buy and hold guy it was brutal for the developers it was as bad as it gets.  I recall a few guys committing suicide.

@Jay Hinrichs I may not have the stones for that!  LOL

@JD Martin

You have taken my posts down for less then "bootlicking lackey's incapable of running a fruit stand" LOL

Trump, his lackey's and pathetic lackey supporters (like yours truly) believe that America can charge a premium price to countries that want to sell here in the states.  In fact they believe that could finance 25% or more of our entire federal expenditures.  If that means we import less consumer plastic niknaks or throw away appliances so be it.  If the financial engineers, globalists (whatever you want to call them) can't make as large of a fortune good.  But the wealthiest Americans success should be tied tied directly, to the success and opportunities of working Americans currently they are not, that is what Trump (that beautiful orange man) tapped into and what MAGA is all about. 

@Scott Trench I love you but I do get "triggered" (as I am not above that) by these reductionist debates or attitudes which I know you are trying not push.  What is good for American families and communities will be good for real estate in the long run. 

@Jay Hinrichs @Henry Clark

In your estimation did the price of these projects/land go up after it was in contract over 18 months, during your hold?  Or was there that much meat on the bone from the get?  You spoke of the risk via the county etc but what about the risk of the market dropping during your hold?  Do you view that a significant risk in this deal and others like it? Thx for sharing and congrats that is a ton of success,

How long did the process take from walking the dirt to closing with one of the big builders?

I like it, so much I'm doing almost exactly that with a partner. We are building a place with HELOCs then after it is built we will finance it and pay off our HELOC, at least thats our plan. Ran the numbers every which way and it made the most sense by far.

Your biggest expense is the mortgage that never increases, while your small expenses grow with inflation your rents grow as well.  Eventually there should be quite a bit of distance between net income in the mortgage.  You can also refinance into a lower rate along the way, hopefully.  I know you know this but this has proved correct for me.  I invest in all 4-20 units and STRs which probably makes a difference.

Curious what scenario you would choose,  

A. Find a solid deal in your market after negotiating you get 3% COC, 1% debt paydown, and say the market appreciates 4% for the next 5 years with 100k down on a 400k asset that would be say 16k+ a year. In five years that 100k has got you 15k+ (hopefully rents went up, paid off 10k+ in debt and your asset has appreciated 80k+. Lots of depreciation you will pay no tax maybe even shield some W2 income.

B.  8k maybe 10k if you pick the right guy to lend your money to in interest income you will be paying much higher tax rate on this income FYI no depreciation expense.  Say you get to keep 6-7k after tax.

I like Option A all day long.  In 5 years and almost certainly in 10 years Scenario A can change your life.  Option B who cares don't spend your time vetting deals for a premium put it in a CD or index fund and go make more money.  

100% I would keep the property.  You will never see 2.25% again, 1600 a month on 150-200k in equity is an excellent return.  I'm in Oregon which basically whips people for being landlords but 99% of your problems are solved by getting good tenants so screen, screen, screen.  Get a 0-5% down loan and do it again in TN.

It kills me but I recommending to some potential clients to not buy currently.  Small mom and pop rentals, is the world I have lived in and you can't get cashflow unless you put down 50% or so down in my area.  I think there is a risk of not doing anything rents going up or interest rates coming down.  But I don't see that happening in the next year even two.  I also think the market is so slow that if an investor is paying attention they will see a trend forming and can react in before there is material shift in values.  I always tell people for the record I have been nothing but wrong about the market for 15 years and I always buy and always hold.  That is the true idiots action plan for building wealth in real estate.